MINEX Forum

Tag: Corporate Governance

  • Uzbekistan’s Strategic Shift: Opening Mining Sector to International Capital Markets

    Uzbekistan’s Strategic Shift: Opening Mining Sector to International Capital Markets

    Uzbekistan is taking significant steps to modernise its mining sector by moving state-owned companies like NMMC and AMMC towards international capital markets. This initiative aims to attract global investors and incorporate international management practices, thereby partially opening its ownership of strategically important mineral assets. This shift is more than just an initial public offering (IPO); it represents a fundamental revaluation of Uzbekistan’s resource strategy.

    The potential advantages of this move are substantial. Firstly, by exchanging equity for capital, Uzbekistan can secure the necessary funding to develop critical minerals such as copper, lithium, and tungsten. These projects require vast investments, and access to global capital markets could alleviate the country’s reliance on government borrowing, facilitating faster investment in mining operations, smelting facilities, and downstream processing.

    Secondly, the influx of international capital could bring advanced technology and management expertise to Uzbekistan’s mining sector. This collaboration could enable the country to transition from merely exporting raw minerals to establishing a more integrated mine-to-metal value chain, enhancing its economic prospects.

    Moreover, the involvement of international shareholders is likely to improve corporate governance within Uzbekistan’s state-owned mining companies. Public listings typically introduce stricter disclosure, auditing, and environmental, social, and governance (ESG) requirements, which can drive these companies towards greater efficiency and transparency.

    Additionally, establishing partnerships with Western investors could create a more secure supply chain for Uzbekistan’s critical minerals. As these investors gain significant stakes in local projects, their interests will become intertwined with the country’s long-term political and economic stability.

    However, this strategy is not without its risks. Sharing equity means relinquishing a portion of future resource revenues and potentially compromising strategic control over mineral assets. If the anticipated benefits of international investment do not materialise—specifically, if technology and market access remain elusive—Uzbekistan may find itself merely exchanging the export of raw materials for the export of ownership.

    The central question remains: who will ultimately dictate the pace of resource development, the allocation of profits, and the direction of downstream industrial investment? The key metric is not merely the amount of equity sold but whether Uzbekistan can leverage minority stakes to gain capital, technology, and a stronger position in global supply chains. If successful, this approach could pave the way for a new model for resource-rich nations seeking to overcome the traditional ‘resource curse.’

  • Austrian Lawmakers Seek Probe Into Ferrexpo’s Corporate Structure and Financial Transactions

    Austrian Lawmakers Seek Probe Into Ferrexpo’s Corporate Structure and Financial Transactions

    Austrian lawmakers have submitted a parliamentary inquiry calling for an investigation into the business activities and financial structures linked to Ferrexpo plc and its major shareholder, Konstantin Zhevago, following allegations concerning transfer pricing, corporate transactions and asset ownership.

    The inquiry names several Ferrexpo-related entities, including Ferrexpo AG, The Minco Trust, First-DDSG Logistics Holding GmbH, MAG Handels- und Transport GmbH, MAGferr GmbH, Eliomys Vermögensverwaltung KG, Oxanikus Vermögensverwaltung KG and Luxembourg-based Calexco S.a.r.l. Authorities have also been asked to examine potential business links involving several individuals connected to the companies.

    The request follows reports published by Austrian magazine Profil, Zhevago’s arrest in France in 2022 and Ukrainian sanctions imposed against him in February 2025.

    One of the main issues under review concerns the marketing of iron ore pellets produced by Poltava Mining and Processing Plant. According to allegations cited in the inquiry, pellets were sold through Ferrexpo AG in Switzerland rather than directly to European steelmakers, including Voestalpine, Salzgitter and Thyssenkrupp, at below-market prices, allowing profits to be shifted outside Ukraine. The alleged outstanding debt to the Poltava operation is estimated at more than US$500 million. Ferrexpo has rejected the allegations, stating that all transactions were conducted on market terms and complied with applicable transfer pricing regulations.

    The parliamentary inquiry also requests an examination of Ferrexpo’s historical relationship with Voestalpine, including the sale of interests in VA Intertrading AG to Calexco S.a.r.l., existing commercial agreements and whether any insider information may have been used in securities trading. Austrian financial regulators have been asked to clarify whether investigations into potential market manipulation or insider trading have been conducted.

    Separately, lawmakers are reviewing the activities of First-DDSG Logistics Holding GmbH, which transported Ferrexpo products. The inquiry notes that the logistics company reported losses of €44.8 million in 2022, €42.3 million in 2023 and €41 million in 2024, prompting questions over transfer pricing arrangements and management decisions.

    The inquiry further seeks information regarding four luxury properties in Austria, including Villa Schwarzenfels in Maria-Wörth, two villas in Vienna and another in Pressbaum, to determine whether they are connected to Zhevago and to establish the origin of the funds used for their acquisition.

    The investigation comes as Ferrexpo faces financial pressures. According to the company, it held approximately US$20 million in cash as of April 2026, while awaiting US$90.3 million in outstanding VAT refunds from the Ukrainian government. The company has announced plans to raise at least US$100 million through a share issue, sell the vessel Iron Destiny for US$7.7 million, implement cost reductions and has warned of potential insolvency risks if its financial position does not improve.

  • Bankruptcy Proceedings Opened Against Poltava Mining Plant as Ferrexpo Shares Slide

    Bankruptcy Proceedings Opened Against Poltava Mining Plant as Ferrexpo Shares Slide

    Ukraine’s Economic Court of Poltava Oblast has opened bankruptcy proceedings against the Poltava Mining and Processing Plant (PGZK), triggering a sharp market reaction and renewed investor concerns surrounding iron ore producer Ferrexpo.

    The company confirmed the development in a statement to the London Stock Exchange on February 24, noting that the court initiated proceedings before a final ruling had been issued by Ukraine’s Supreme Court. Following the announcement, Ferrexpo’s share price fell by 28 percent.

    The bankruptcy case was initiated by Maxi Capital Group, which secured a court judgment in January 2025 ordering PGZK to repay UAH 4.7 billion. The dispute stems from a financial claim originally linked to the failed Finance and Credit bank, where PGZK acted as a guarantor. Maxi Capital acquired the claim in 2020.

    PGZK maintains that the debt had already been settled, citing the write-off of funds in August 2015 and their subsequent return to company accounts in July 2019, arguments reflected in earlier court rulings. The matter remains under consideration by the Supreme Court, despite bankruptcy proceedings now formally underway.

    Operations at the mining and processing plant continue uninterrupted, but the legal escalation has increased uncertainty for investors and lenders. PGZK is one of Ukraine’s largest exporters of iron ore pellets to European markets, meaning prolonged litigation could affect financing conditions, payment stability and regional export flows.

    Ferrexpo stated that PGZK intends to appeal the court’s decision within the statutory ten-day period. However, under Ukrainian law, filing an appeal does not suspend bankruptcy procedures, leaving the timeline and potential consequences difficult to predict.

    The case also adds to broader scrutiny surrounding Ferrexpo and its controlling shareholder, businessman Kostyantyn Zhevago. Earlier in 2025, bankruptcy proceedings were opened against pharmaceutical group Arterium, also associated with Zhevago, while PGZK’s board leadership has faced investigations by law enforcement authorities since 2023.

    Market analysts note that even without operational disruption, reputational risks and declining market capitalisation could complicate access to investment capital. The outcome of ongoing appeals and Supreme Court decisions will likely determine whether the dispute remains a legal challenge or evolves into a broader economic risk affecting employment, exports and investor confidence.

  • Unexpected bid intensifies battle for control of Eurasian Resources Group

    Unexpected bid intensifies battle for control of Eurasian Resources Group

    A new twist has emerged in Kazakhstan’s mining sector after businessman Shahmurat Mutalip put forward an offer to acquire a 40% stake in Eurasian Resources Group (ERG), entering a prolonged shareholder dispute and challenging the position of the company’s chief executive, Shukhrat Ibragimov. According to the Financial Times, Mutalip has reached a preliminary agreement with the families of ERG co-founders Patokh Shodiev and the late Alexander Mashkevich to purchase their combined holdings for $1.4 billion, subject to the Ibrahimov family waiving its right of first refusal.

    ERG was founded in the 1990s on the basis of former state-owned mining assets and later became one of the most prominent post-Soviet companies to list in London. Today, ownership is split between the three founding families, each holding about 20%, and the government of Kazakhstan, which controls the remaining 40%. The talks are taking place amid rising international competition for metals critical to clean energy, artificial intelligence and industrial infrastructure, increasing the strategic value of ERG’s assets.

    Mutalip’s move has surprised the market, given his limited background in mining and his career roots in construction. His recent interest in large-scale resource assets, including a reported bid for a controlling stake in Kazzinc, has raised questions about financing and long-term strategy. At the same time, ERG continues to face financial pressure due to its reliance on loans from Russian state banks under Western sanctions, adding further uncertainty to the outcome of the ownership battle.

  • Dundee Precious Metals Shareholders Approve Adriatic Metals Acquisition and Corporate Rebranding

    Dundee Precious Metals Shareholders Approve Adriatic Metals Acquisition and Corporate Rebranding

    August 13, 2025

    Toronto, Canada – Dundee Precious Metals Inc. (TSX: DPM) has announced the results of its special meeting held on August 13, 2025, where shareholders overwhelmingly approved two key resolutions: the issuance of common shares in connection with the acquisition of Adriatic Metals plc and a name change for the company.

    Shareholder Approval for Acquisition and Name Change

    Shareholders voted to approve the issuance of DPM common shares as part of its proposed acquisition of Adriatic Metals plc, to be effected by a scheme of arrangement under Part 26 of the Companies Act. Additionally, shareholders approved an amendment to the company’s articles to change its name to “DPM Metals Inc.” or another name as approved by the board of directors, subject to regulatory approval.

    The voting results were as follows:

    Share Issuance: 121,852,918 votes in favor (99.73% of votes cast), 329,765 votes against (0.27%).
    Name Change: 125,346,665 votes in favor (99.81% of votes cast), 236,902 votes against (0.19%).
    A total of 122,182,683 shares were voted for the share issuance, representing approximately 73.19% of the issued and outstanding DPM shares. For the name change, 125,583,567 shares were voted, representing approximately 75.23% of the issued and outstanding DPM shares.

    Adriatic Shareholder Approval

    DPM also confirmed that Adriatic Metals plc has received the requisite shareholder approvals for the scheme of arrangement at its Court Meeting and General Meeting, both held earlier today.

    Next Steps and Completion of Acquisition

    The completion of the acquisition remains subject to the sanctioning of the scheme by the High Court of Justice in England and Wales, the delivery of a copy of the Court’s order to the Registrar of Companies in England and Wales, and the satisfaction or waiver of other conditions set out in the scheme document. The hearing for the Court’s sanction is currently scheduled for August 29, 2025. As announced by Adriatic, the scheme is expected to become effective on September 3, 2025.

  • AGMK Receives ESG Rating of 3 from Sustainable Fitch

    AGMK Receives ESG Rating of 3 from Sustainable Fitch

    Sustainable Fitch has assigned JSC Almalyk Mining and Metallurgical Complex (AGMK) an ESG Entity Rating of 3 with an entity score of 56, highlighting both strengths and challenges in the company’s sustainability practices.

    The rating acknowledges AGMK’s sustainable development strategy, governance framework, and environmental policies, despite the inherent ecological impact of its mining and metallurgical operations. The assessment also considers the company’s alignment with global taxonomies, contribution to UN Sustainable Development Goals (SDGs), and integration of ESG principles into business operations.

    As one of Uzbekistan’s largest non-ferrous metals producers, AGMK exports copper, silver, and gold to over 17 countries. Its vertically integrated production covers exploration, mining, processing, and finished product creation. While essential for various industries, these activities result in high energy consumption, greenhouse gas emissions, and significant water and waste usage.

    On the environmental front, AGMK benefits from strong policies and a clean record of major incidents over the past three years, though Scope 3 emissions remain undisclosed. Socially, the company reports low employee turnover, but serious workplace accidents and limited gender diversity remain concerns. Governance-wise, AGMK is strengthened by an independent internal audit function, effective risk management, and a low CEO pay ratio in 2023, although independent directors are a minority on its board.

    Despite challenges, the rating reflects AGMK’s continued commitment to sustainability and corporate responsibility.

  • NMMC Receives ESG Rating from Sustainable Fitch, Reinforcing Industry Leadership

    NMMC Receives ESG Rating from Sustainable Fitch, Reinforcing Industry Leadership

    Navoi Mining & Metallurgical Company (NMMC), the world’s fourth-largest gold producer, has received its first Environmental, Social, and Governance (ESG) rating from Sustainable Fitch. The company was assigned a rating of ‘3’ on a 1 to 5 scale (where 1 represents low risk and 5 represents high risk) and an overall ESG score of 51 out of 100.

    The rating reflects a detailed assessment of NMMC’s sustainability initiatives, corporate governance, environmental performance, and social responsibility programs. The company’s environmental and social performance received a ‘3’ rating, acknowledging strong policies on emissions and water management, absence of major environmental incidents, and a low gender pay gap. Meanwhile, its corporate governance scored a ‘2’, recognizing adherence to international financial reporting standards, systematic internal audits, and structured risk management.

    NMMC’s ESG rating is consistent with global mining industry peers, reflecting the sector’s inherent environmental challenges, including high energy and water consumption, greenhouse gas emissions, and industrial waste generation. Importantly, NMMC is the first company in Uzbekistan’s mining sector to receive a public ESG rating, highlighting its commitment to transparency and sustainability leadership.

    “Sustainability is a key pillar of our business strategy and crucial for long-term growth and investor confidence,” stated Eugene Antonov, First Deputy CEO and Head of Transformation at NMMC. He emphasized that the company’s ESG principles are central to its transformation program, aligning with Uzbekistan’s 2025 ‘Year of Environmental Protection and the Green Economy’ initiative and the national ‘Uzbekistan-2030’ strategy.

    Boris Samoylenko, Head of ESG at NMMC, reinforced that the rating validates NMMC’s ongoing sustainability efforts and serves as a benchmark for further improvements in line with global best practices.

  • Major Executive Shake-Up at Aurubis Following Massive Fraud Losses

    Major Executive Shake-Up at Aurubis Following Massive Fraud Losses

    In response to fraud-related losses in the hundreds of millions, Hamburg-based copper producer Aurubis is undergoing significant leadership changes. On Monday evening, the company confirmed that three out of four executive board members, including CEO Roland Harings, will step down. This move follows “advanced talks” with the supervisory board about terminating their positions.

    Harings, along with CFO Rainer Verhoeven and Chief Production Officer Heiko Arnold, will leave the executive board by February, June, and September of next year, respectively. Despite the impending departures, Aurubis stated that these executives will continue fulfilling their duties until their exit dates.

    The supervisory board initiated an investigation into the leadership’s role in connection with multiple cases of fraud and theft that caused significant financial damage. These incidents included a €169 million shortfall in metal stock discovered during regular checks, resulting in manipulated samples and over-invoicing.

    As a result, the company reported a 33% drop in earnings before interest and taxes (EBT) to €349 million for the fiscal year 2022-23, with revenue falling nearly 8% to €17.1 billion. Despite these challenges, Harings emphasized that security measures have since been strengthened to prevent future incidents.

    A final decision on the leadership changes is expected to be made by the supervisory board on Tuesday.

  • New Leader Appointed at Mining and Metallurgical Company

    New Leader Appointed at Mining and Metallurgical Company

    In a recent development, Jeanat Zhanbotin has been appointed as the new head of the mining and metallurgical company. Formerly serving as the Executive Director of Finance, Zhanbotin brings a wealth of experience and expertise to his new role.

    Born in 1980, Jeanat Dusenovich holds degrees in Mining Engineering, Economics and Finance, and a Master’s in Business Administration (MBA). His professional journey commenced in the banking sector, where he climbed the ranks from a specialist to a department head in credit management.

    Since 2007, Zhanbotin has been associated with AO “Vasilkovsky GOK,” a subsidiary of AO Altyntau Kokshetau (a subsidiary of TOO “Kazcink”). By 2021, he had assumed the position of Executive Director of Finance at “Kazcink.”

    Married with four children, Zhanbotin emphasizes his commitment to both his family and his professional responsibilities.

    Speaking on his new role, Zhanbotin acknowledges the dynamic nature of “Kazcink” within the mining and metallurgical sector, highlighting the need to address current challenges posed by global market turbulence and geopolitical uncertainties. He pledges to uphold the company’s legacy of social responsibility while navigating through these complexities.