Mining Firms Merged to Boost Global Tungsten Supply
Operators in sectors reliant on minerals should monitor the project's attempt to counter China's 80% market share.
Updated on Oct. 13, 2026 in Construction
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Cove Kaz Capital Group and Skyline Builders Group have combined to form Kaz Resources Inc. to develop the Severniy Katpar tungsten project. The venture aims to secure supply for essential national security minerals ahead of new U.S. sourcing restrictions.
Why it matters
The project addresses a critical supply chain dependency, as the United States has not produced tungsten domestically since 2015. Accessing new, non-Chinese sources is becoming a competitive and compliance priority for manufacturers.
The Severniy Katpar project targets an annual production volume equal to 15% of the current global total. Indicative financing for the development includes $900 million from the Export-Import Bank and $700 million from the U.S. International Development Finance Corporation.
The players
Kaz Resources Inc.
A newly formed resource company trading on the Nasdaq designed to develop the Severniy Katpar tungsten deposit.
Export-Import Bank of the United States
The official export credit agency of the U.S. government that provides financing to support American business interests abroad.
U.S. International Development Finance Corporation
The U.S. government's development finance institution that partners with the private sector to finance solutions for critical development challenges.
U.S. Department of Defense
The federal executive department responsible for national security, currently shifting procurement rules to influence domestic mineral supply chains.
The details
Kaz Resources Inc., which will trade on the Nasdaq as KAZR, is positioning to fill a supply gap as the U.S. Department of Defense implements new sourcing restrictions on January 1, 2027. The project encompasses 1.4 million tons of tungsten trioxide with a mine life exceeding 50 years. Site preparation began in 2026 to bring this capacity online and diversify inputs away from China's 80% global supply dominance.
Timeline
2015: U.S. domestic tungsten production ceased.
2026: Site preparation commenced at Severniy Katpar.
January 1, 2027: New U.S. Department of Defense sourcing restrictions take effect.
Market Landscape
The formation of Kaz Resources follows a pattern of heightened focus on critical minerals as businesses brace for the U.S. Department of Defense sourcing restrictions. This project marks a departure from reliance on established Chinese supply chains by leveraging significant U.S.-backed financing.
Operators who procure tungsten or related industrial components should audit their current supply contracts ahead of the January 1, 2027, defense sourcing restrictions. Factor in potential price volatility if existing suppliers lose their eligibility for U.S. defense-linked contracts.
The takeaway
Securing non-Chinese mineral sources is becoming a critical operational pillar for firms navigating shifting defense procurement mandates. Owners should monitor the progress of new supply projects and verify if their current vendors meet the upcoming 2027 compliance requirements.
Further reading
For broader trends in resource development and industrial projects, see our Construction section.
Source note: This article includes information reported by AZoMining.
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