Ossoff says Kazakhstan called Trump on tungsten mining rights — then ‘6 days later’ his sons got a stake in the company that won the contract

“Last September, the President of Kazakhstan calls Donald Trump and says he wants to grant tungsten mining rights to an American company — and the very next month, Eric and Don Jr. get a stake in the American company pursuing the mining deal,” reads the post on Team Ossoff’s X account. “Six days later, six days after Prince Eric and Prince Don get their stake [in Skyline], Kazakhstan announces this company will get, ‘the largest known undeveloped tungsten resource in the world.’”

Ossoff adds that, just a few weeks later, the U.S. government, “run by their father,” put aside $1.6 billion of taxpayer dollars to finance the mining project in Kazakhstan — all while Americans “pay more for gas, for groceries, for health care,” adding that this is all “just the tip of the iceberg.”

But while Ossoff’s claim raises ethicality concerns, the details behind the $1.6 billion figure are complicated. Here’s what you need to know.

What is the $1.6 billion actually funding, and how is the Trump family involved?

The $1.6 billion figure refers to the U.S. government-backed financing and support for a critical minerals project in Kazakhstan. It comes at a time when the U.S. government is actively trying to reduce its dependence on China for critical minerals, “ramping up interagency cooperation to address the critical minerals challenge” with the recently established National Energy Dominance Council (NEDC), according to the Council on Foreign Relations.

Tungsten, in particular, is considered a strategically important mineral because it is used in defense, aerospace, electronics and manufacturing applications. About 60% of the tungsten used in the U.S. is used in cemented carbide parts for cutting and wear-resistant applications for industries from construction and metalworking to mining and oil- and gas-drilling — but it has not been mined commercially in the U.S. since 2015, according to a U.S. Geological Survey.

According to reports, the U.S. government’s support for the Kazakhstan mining project was intended to help secure access to tungsten and reduce critical mineral dependence on geopolitical rivals.

The timeline was quick. In August last year, Trump’s sons invested in US-based construction group Skyline through a special investment vehicle connected to Dominari Securities — although the size of their investment was not made public, according to Financial Express.

By September, Kazakhstan president Kassym-Jomart Tokayev reportedly told Trump that the tungsten mining project — which attracted competition from companies in both China and Russia — would likely go to the U.S.-backed group called Cove Kaz Capital.

Then, in October, Donald Jr. and Eric increased their stake in Skyline. Just days later, Skyline agreed to pay $20 million for a 20% stake in Kaz Resources, linked to Cove Capital. And, by November, Cove Capital and Kazakhstan’s National Mining Company announced plans to develop “the largest known undeveloped tungsten resource in the world.”

Shortly thereafter, Skyline and Cove Capital announced a merger that would create Kaz Resources Inc., a Nasdaq-listed company expected to trade under the ticker symbol “KAZR.”

Now, the U.S. Export-Import Bank and the Development Finance Corporation have committed up to $1.6 billion to support the development of two mining sites in central Kazakhstan, and Cove Kaz controls about 70% of these projects. Cove Kaz has reportedly secured letters of interest to provide loan guarantees designed to encourage development of the mine.

Critics are concerned that the arrangement can expose taxpayers to risk if the project fails, but the financing structure does not automatically mean that taxpayer funds will immediately be handed over to private investors.

Why Ossoff is raising his concerns

Ossoff’s broader argument focuses on the connection between the mining venture and the Trump family. He argues that the arrangement raises ethical concerns because members of the president’s family could potentially benefit from a project receiving substantial U.S. government backing.

Supporters of Ossoff’s position say taxpayers deserve transparency whenever public financing intersects with the financial interests of elected officials or their relatives.

Earthworks, an organization that aims to protect “communities and the environment from the adverse impacts of mineral and energy development,” has also argued that the Trump administration’s practice of using taxpayer funds to acquire ownerships stakes in mining and mineral-processing companies raises concerns about financial risk, government favoritism and conflicts of interest.

Earthworks also highlights environmental and Tribal-rights issues tied to several mining projects tied to the family and calls for greater congressional oversight to ensure public funds are not used to benefit select companies at the expense of taxpayers, communities or environmental protections.

“The American public now owns stakes in projects that threaten irreplaceable ecosystems, Tribal rights and sacred sites,” Earthworks warns. In 2021, the U.S. government also “rushed through a 15-month permitting process for Lithium America’s Thacker Pass mine without adequate input from Tribes and communities. The company was given a $2.3 billion loan to get started but, in 2025, when it couldn’t meet the loan conditions, “the Trump Administration instead took shares in the company.”