Cove Capital, in partnership with Kazakhstan’s national geological exploration company JSC Qazgeology, has launched a joint venture (JV) called Akbulak REE. This strategic alliance aims to advance the exploration and development of the Akbulak Rare Earth Project located in Kazakhstan’s Kostanay Region. The project holds significant potential, with an estimated 380,000 tonnes of rare earth oxides, including critical elements like neodymium, praseodymium, and yttrium. These elements play vital roles in industries such as electronics, medicine, and permanent magnet production.
The JV is officially registered under the Astana International Financial Centre (AIFC) as a Private Company. Cove Kaz Capital Group, a part of Cove Capital, will finance the project initially. Both partners will share funding responsibilities proportionally. Cove Kaz Capital Group holds a 75% stake, and Qazgeology retains 25%. The JV now controls the exploration licence for the Akbulak project, transferred from Qazgeology to Akbulak REE. The Ministry of Industry and Construction of the Republic of Kazakhstan sanctioned the transfer, allowing the JV to begin exploration and development activities immediately.
Pini Althaus, CEO of Cove Capital, emphasized the importance of the partnership, stating, “The formation of Akbulak REE and the licence transfer mark a significant advancement in our strategy to develop critical mineral resources in Kazakhstan. This venture underscores our commitment to collaborating with leading local institutions like Qazgeology to unlock the full potential of Kazakhstan’s rare earth and critical minerals deposits.”
Advancing Kazakhstan’s Critical Minerals Sector
Kazakhstan is emerging as a key player in the global supply chain for critical minerals. The Akbulak Rare Earth Project is a significant step forward. Neodymium and praseodymium are essential for producing high-performance permanent magnets. These elements are in high demand due to their role in renewable energy technologies, electric vehicles, and high-tech industries. Additionally, yttrium is widely used in electronics, medicine, and material science. This makes the project even more promising.
Cove Capital has also been forming strategic partnerships in Kazakhstan. In September 2023, the company entered an MoU with Samruk Kazyna, Kazakhstan’s Sovereign Wealth Fund. The MoU focuses on collaborating on rare earth metals exploration. In April 2024, Cove Capital announced a landmark partnership with Tau-Ken Samruk to enhance the exploration and development of rare earth and critical metals.
These partnerships position Cove Capital as a leader in securing critical minerals for modern technologies. The joint venture with Qazgeology is a crucial step in strengthening Kazakhstan’s role in the global critical minerals supply chain. Cove Capital also focuses on advancing critical mineral resources in Kazakhstan. Kaz Resources, a Cove Capital portfolio company, became the first American entity to secure critical minerals land concessions in Kazakhstan in 2023. Kaz Critical Minerals holds 12 critical minerals concessions and a license for tailings concessions in the country.
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