Donald Trump Jr. and Eric Trump have acquired stakes in Skyline Builders, which has now merged with Cove Kaz Capital to develop one of the world’s largest undeveloped tungsten deposits, backed by up to $1.6 billion in U.S. government financing.
Representative image of a tungsten mining operation as global demand for critical minerals intensifies. [Mining Weekly]
Trump Sons Take Stakes in Kazakhstan Tungsten Deal
Donald Trump Jr. and Eric Trump have invested in Skyline Builders Group Holding (Nasdaq: SKBL), a U.S.-listed construction company. Skyline has since merged with Cove Kaz Capital Group, the firm developing a $1.1 billion tungsten mining project in Kazakhstan. The Financial Times first reported the investment on April 30, 2026, citing three sources familiar with the deal.
Donald Trump Jr. and Eric Trump have invested in Skyline Builders, expanding into critical minerals.[Financial Express]
The brothers acquired their stakes through American Ventures, a special purpose vehicle managed by a subsidiary of Dominari Securities. Dominari Securities is itself a subsidiary of Dominari Holdings Inc. (Nasdaq: DOMH). The Trump family’s investment size has not been disclosed publicly.
The deal expands the Trump family’s business interests into the critical minerals sector. It arrives at a time when the United States is actively working to reduce its dependence on China for strategic metals used in defense manufacturing.
How the Trump Brothers Built Their Position in Skyline Builders
The brothers made their initial entry into Skyline Builders in August 2025. They purchased stakes through American Ventures at that time. Two months later, in late October 2025, they increased their exposure by joining a private placement that raised nearly $24 million for the company.
On October 31, 2025, Skyline agreed to pay $20 million for a 20% stake in a company described as holding “significant critical minerals assets in Asia.” That company turned out to be Kaz Resources, a subsidiary of New York-based Cove Capital Group. Cove Capital also controls Cove Kaz Capital, the entity awarded the Kazakhstan tungsten project.
Cove Kaz Capital Seals Final Deal With Kazakhstan’s State Miner
Cove Kaz Capital Group completed the financial closing of its share purchase agreement on April 29, 2026. Through this transaction, the company acquired a 70% controlling interest in Severniy Katpar LLP. Kazakhstan’s national mining company, Tau-Ken Samruk, retains the remaining 30% stake in the joint venture.
Map showing the Karaganda mining district in Kazakhstan, home to the Northern Katpar and Upper Kairakty deposits. [Frontier]
The Skyline-Cove Kaz merger, completed shortly after, created a new operating entity named Kaz Resources. Kaz Resources will hold and develop the two tungsten deposits at the heart of the project: Northern Katpar and Upper Kairakty. Both deposits sit in the Karaganda mining district of central Kazakhstan, less than 20 miles apart.
“The financial closing of the share purchase agreement is a significant mile marker in the development of Severniy Katpar. We commend Tau-Ken Samruk and the Government of Kazakhstan for their outstanding partnership in ensuring all requisite approvals to meet the summer weather window as we commence the upgraded Definitive Feasibility Study imminently.”
Pini Althaus, Executive Chairman, Cove Kaz Capital Group
Kazakhstan Tungsten Deposits Among the Largest in the World
Cove Capital describes the Northern Katpar and Upper Kairakty deposits as the largest known undeveloped tungsten resource on the planet. A JORC-compliant mineral resource estimate from 2023 placed the resource at 1.4 million tonnes of tungsten trioxide (WO3). That figure represents more than half of China’s entire 2.4 million-tonne reserve, as calculated by the U.S. Geological Survey.
Current feasibility studies outline a combined production capacity of approximately 12,000 metric tonnes per year from both deposits. That output would represent roughly 15% of total global tungsten production. Northern Katpar alone targets 5,000 metric tonnes annually, while Upper Kairakty is projected to yield 7,000 metric tonnes per year.
Cove Kaz Capital CEO Dominic Heaton previously described tungsten as “an essential industrial metal” with supply that is “limited and increasingly concentrated.” He called the Severniy Katpar project “a generational resource for global tungsten supply.”
U.S. Government Backs Project With Up to $1.6 Billion in Financing
Two U.S. government-linked agencies have each expressed interest in financing the project. The U.S. Export-Import Bank indicated support of up to $900 million. The U.S. International Development Finance Corporation (DFC) expressed interest in contributing up to $700 million. Together, those pledges exceed the project’s $1.1 billion estimated development cost.
These are letters of interest, not final commitments. Formal loan agreements would require further due diligence and approvals from both agencies. Still, the combined interest of $1.6 billion signals strong backing from Washington for the venture.
Althaus told Reuters last year that the company expects first production in approximately three years. “This is a generational win for the U.S. and its critical minerals needs,” he said at the time.
Geopolitical Context: Kazakhstan Chose U.S. Over China and Russia
The backdrop to this deal carries significant geopolitical weight. On September 22, 2025, Kazakhstan’s President Kassym-Jomart Tokayev told Donald Trump that he planned to award the major tungsten project to Cove Kaz Capital. At that point, the U.S.-backed firm was competing directly against Chinese and Russian companies for the contract.
Kazakhstan’s leadership is balancing ties between global powers amid rising interest in critical minerals. [Britannica]
Details of the informal Trump-Tokayev agreement entered the press on October 21, 2025. Notably, the Trump brothers increased their investment in Skyline just seven days later, on October 28. On November 6, at the White House C5+1 summit between President Trump and the five Central Asian heads of state, Cove Capital and Tau-Ken Samruk officially announced their joint development agreement.
At that summit, Trump declared the U.S. would strengthen relations with Central Asia “like never before.” Kazakhstan holds considerable diplomatic value, balancing ties with Russia through shared Soviet-era infrastructure, with China as its largest trading partner, and now with growing Western investment interest.
Trump Sons’ Spokesperson Addresses Conflict of Interest Questions
The sequence of events, investment before contract award, reinvestment after details emerged, and the eventual U.S. government financing, has drawn scrutiny. Analysts and observers have raised questions about timing and the potential overlap between the family’s private investments and federal government decisions.
A spokesperson for Donald Trump Jr. addressed these concerns directly.
“Don is a passive investor in American Ventures and has no operational involvement in the company,” the spokesperson told the Financial Times.
“He does not interface with the federal government on behalf of any company he invests in or advises.” Eric Trump did not respond to requests sent to the Trump Organization and American Bitcoin. The White House also did not respond to the newspaper’s inquiry.
Three sources familiar with the matter told the Financial Times there is no suggestion the brothers knew Cove was about to secure a government contract when they made their initial investment in August 2025, nor that they had any influence in awarding that contract.
Tungsten’s Strategic Role in U.S. Defense and Industry
Tungsten sits at the center of American defense strategy due to its unique physical properties. It carries the highest melting point of any metal, at 3,422 degrees Celsius. That quality makes it irreplaceable in armor-piercing ammunition, aerospace components, and semiconductor manufacturing.
China currently controls the global tungsten supply chain. Washington views this dependency as a strategic vulnerability. Analyst Christopher Ecclestone of Hallgarten & Company described tungsten as “an object of Pentagon lust that they want to get at any cost.” Cove Capital has stated that some of the tungsten mined under the project will supply American defense contractors directly.
What Comes Next for the Kaz Resources Tungsten Project
Cove Kaz Capital plans to commence an upgraded Definitive Feasibility Study within the current summer weather window. The company aims to advance the project through permitting and construction toward commercial production. Analyst Quentin Lamarche of TechMet SCM has cautioned that while Kazakhstan’s deposits are rich, the project sits at an early development stage and will require substantial time and capital to bring into production.
Kaz Resources, the newly created entity born from the Skyline-Cove Kaz merger, will serve as the operating vehicle for the project. Cove Kaz Capital holds 70% of the joint venture, with Tau-Ken Samruk retaining 30%. The project aims to supply a long-term, secure stream of tungsten to U.S. industrial and defense end markets. Investors will track the progress of formal financing commitments from the Export-Import Bank and the DFC in the months ahead.
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FAQS
Q1. What is the Kazakhstan tungsten project involving the Trump sons?
A1. The project is a $1.1 billion tungsten mining development in Kazakhstan, led by Cove Kaz Capital. Donald Trump Jr. and Eric Trump invested in Skyline Builders, which merged with the project’s operating entity.
Q2. How much have the Trump sons invested in the project?
A2. The exact investment amount has not been publicly disclosed. Their stakes were acquired through a special purpose vehicle called American Ventures.
Q3. Why is tungsten important to the United States?
A3. Tungsten is a critical metal used in defense systems, aerospace, and semiconductors due to its high melting point and strength, making it vital for national security.
Q4. How much funding is the U.S. government considering for the project?
A4. U.S. agencies have expressed interest in providing up to $1.6 billion in financing, including $900 million from the Export-Import Bank and $700 million from the DFC.
Q5. Where are the tungsten deposits located?
A5. The deposits, Northern Katpar and Upper Kairakty, are located in central Kazakhstan’s Karaganda mining district.
Q6. How large is the tungsten resource in Kazakhstan?
A6. The deposits are estimated to contain about 1.4 million tonnes of tungsten trioxide, making them among the largest undeveloped tungsten resources globally.
Q7. When is production expected to begin?
A7. The company expects initial production to start in approximately three years, subject to feasibility studies, approvals, and financing.
Q8. Are there any conflict of interest concerns?
A8. Some analysts have raised questions about timing, but sources cited by the Financial Times say there is no evidence the Trump sons influenced the contract award or had prior knowledge.
Disclaimer
This article is published by Colitco for informational purposes only and does not constitute financial, investment, or legal advice. While Colitco strives for accuracy and reliability, it makes no guarantees regarding the completeness or timeliness of the information. Readers should conduct their own research or consult a qualified professional before making any decisions. Colitco accepts no liability for any losses incurred based on this content.
Sources
https://discoveryalert.com.au/trump-sons-tungsten-kazakhstan-critical-minerals-investment/
Last modified: May 2, 2026
