ERG Exploration Granted Exploration Rights in Mughalzhar District

16/05/2024

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ERG Exploration, a subsidiary of ERG, has been authorized to conduct geological exploration for solid minerals across 8.9 thousand hectares in the Mughalzhar district of Aktobe region. According to a decree by Darhan Yermagambetov, the district’s akim, a public easement will be established on land plots in the Kayyndy rural district without removing land users. The exploration rights are valid until May 6, 2030. The public discussion of the decree will continue until May 30, and it will be published on the district akimat’s website.

The company received a license for solid mineral exploration, numbered 2633-EL, on May 6. Last October, ERG Exploration began geological work on 2.8 thousand hectares in the Aktogay district of Karaganda region, focusing on areas predominantly within the district’s land fund and two farming estates.

ERG Exploration’s CEO, Azamat Shalabayev, revealed plans to digitize geological data and explore for various metals, including chromium, manganese, copper, and rare metals. The company recently secured the right to explore a copper site in North Pribalkhash, having paid over 420 million tenge. Initial studies, conducted during the Soviet era and later by Rio Tinto with Kazgeology, estimated the site contains up to 200 thousand tons of copper with low ore concentration. ERG plans to extend exploration to a depth of 700 meters to locate more minerals.

ERG has acquired 43 licenses for mineral exploration, focusing on cobalt, lithium, and copper. ERG’s Board Chairman, Serik Shakhazhanov, emphasized the company’s dedication to exploring future-critical metals. ERG recently inaugurated the ERG GeoHub core storage in Rudny, and plans to invest around $6.5 billion in Kazakhstan over the next five years, significantly boosting production across various divisions.

The ultimate owners of ERG include the Ministry of Finance with a 40% stake, Alexander Mashkevich and the Ibragimov family each holding 20.7%, and Patokh Shodiev with 18.6%. These stakeholders were the first Kazakh billionaires according to Forbes in 2005. Mashkevich and Shodiev have since changed their citizenships to Israeli and Belgian, respectively. Mashkevich ranked sixth among the wealthiest Israelis in Forbes 2022 with a net worth of $3.7 billion. The Ibragimov family’s net worth is currently estimated at $1.5 billion.

Source and Credit: kz.kursiv.media