US Senator Elizabeth Warren has sent inquiries to four US federal agencies requesting clarification on the oversight of a mining project in Kazakhstan which, according to her, is linked to the financial interests of US President Donald Trump's family. The move was prompted by questions about a potential conflict of interest in the provision of government funding.
WHAT PROMPTED THE INQUIRY
According to Bloomberg, Elizabeth Warren sent letters to the heads of the US Export-Import Bank, the US Department of Commerce, the US Department of Defense, and the US International Development Finance Corporation.
The Senator requested information on the due diligence procedures applied when considering a tungsten mining project in Kazakhstan, being carried out by the company Cove Kaz Capital.
WHAT QUESTIONS THE PROJECT RAISED
In her inquiry, Elizabeth Warren stated that the possible involvement of the US Export-Import Bank in financing the project is a particular cause for concern. According to a source, the possibility of providing a significant portion of federal funding is being considered, which various reports estimate at around $2 billion.
The article also mentions reports of financial ties between the project and Donald Trump's family.
WHAT CONSEQUENCES ARE MENTIONED
It is noted that the Senator's request could complicate the process of re-authorising the powers of the US Export-Import Bank in the US Congress. According to the news agency, the bank's authority to issue new credit guarantees expires on 31 December unless Congress extends its mandate.
CONTEXT
It was previously reported that the American company Cove Kaz Capital received approximately $1.6 billion in US government funding for a project to develop the Northern Katpar and Verkhneye Kairaktinskoye tungsten deposits in Kazakhstan. According to the Financial Times, the company has also requested additional funding, which could bring the total amount of state support to $2 billion.
According to the publication, US President Donald Trump's sons, Eric Trump and Donald Trump Jr., are linked to the project. They became co-owners of a company that subsequently acquired a 20% stake in Kaz Resources, which is involved in developing the Kazakh deposits.
