MINEX Forum

Tag: ERG

  • Kazakhstan’s Ministry of Finance Transfers 40% Stake in ERG to Samruk-Kazyna Fund

    Kazakhstan’s Ministry of Finance Transfers 40% Stake in ERG to Samruk-Kazyna Fund

    In a shift in ownership, Kazakhstan’s Ministry of Finance has transferred its 40% stake in Eurasian Resources Group (ERG) to the sovereign wealth fund, Samruk-Kazyna. This move, which took effect on 4 August 2026, is seen as a strategic decision aimed at bolstering the national budget and streamlining the management of state assets. Experts suggest that the transfer could generate approximately 897 billion tenge (around $1.9 billion) for the government, echoing previous asset sales that have successfully replenished state finances.

    Nurlan Zhumagulov, director of the Energy Monitor public fund, indicated that the need for budgetary support was a driving factor behind this decision. He noted that similar transactions in the past, such as the sale of stakes in KazMunayGas and Kazatomprom, have provided critical funding for the state. The historical context of ERG’s role in supporting governmental initiatives further complicates the narrative, as the company has often acted beyond its commercial obligations to assist the state.

    Financial analyst Rasul Rysmambetov highlighted that discussions regarding the transfer of ERG’s state stake to Samruk-Kazyna had been ongoing for some time. He explained that ERG has historically taken on responsibilities that extended beyond standard business operations, effectively acting as a financial buffer for the government during challenging times. The management of the state’s stake is expected to transition to the Tau-Ken Samruk structure, although this will necessitate organisational changes and an increase in personnel.

    The consolidation of ERG’s management under a single state entity is viewed as a move towards unifying control over significant national assets. However, the implications of this change remain uncertain, with Rysmambetov cautioning against premature conclusions about its potential impact. The Ministry of Finance has historically been cautious about the company’s initiatives, which raises questions about how the new management structure will navigate the complexities of state-business relations.

    The transfer of shares was officially confirmed by Samruk-Kazyna, which stated that the acquisition aligns with its mandate to manage state assets effectively for the benefit of Kazakhstan. The decision to consolidate ERG under Samruk-Kazyna is part of a broader strategy to enhance the efficiency of state asset management, ensuring that the interests of both the government and the public are adequately represented.

    As ERG continues its operations, the company has reassured stakeholders that its strategic development plans remain intact despite the ownership changes. The new management structure is expected to be led by Kudrat Shamiyev, who will oversee the business’s direction in Kazakhstan. The transition marks a pivotal moment for ERG and the Kazakh mining sector, as the government seeks to optimise its control over vital resources and enhance fiscal stability.

  • ERG Shareholders Consider Splitting Kazakhstan and International Mining Businesses

    ERG Shareholders Consider Splitting Kazakhstan and International Mining Businesses

    The owners of Eurasian Resources Group (ERG) are considering a major restructuring that would separate the company’s Kazakhstan operations from its international mining assets, according to people familiar with the discussions.

    The proposed split would divide the group between its two principal private shareholders, Shakhmurat Mutalip and Shukhrat Ibragimov. ERG currently generates most of its revenue from iron ore, ferrochrome and aluminium production in Kazakhstan, while also operating mining assets in the Democratic Republic of Congo and Brazil.

    Under the proposal, Shukhrat Ibragimov, ERG’s Chief Executive Officer and Chairman since 2024, would exchange his family’s 20% shareholding for ownership of the international business, which would be transferred into a newly created company. Shakhmurat Mutalip and the Government of Kazakhstan, which holds a 40% stake in ERG, would retain ownership of the group’s Kazakhstan mining and metallurgical operations.

    If completed, the restructuring would strengthen Mutalip’s influence over ERG’s domestic business, while allowing Ibragimov to focus on the company’s international portfolio, particularly its operations in the Democratic Republic of Congo. ERG owns several producing and development-stage assets in the country, including Metalkol, one of the world’s largest cobalt producers and a significant copper supplier.

    The discussions follow Mutalip’s acquisition of a 39.3% stake in ERG in May from the families of co-founders Patokh Chodiev and Alexander Mashkevich, reflecting a broader transition in Kazakhstan’s business landscape. Last month, the chairman of Mutalip’s construction company was appointed Chief Executive Officer of ERG’s Kazakhstan business.

    According to sources, approximately US$2 billion of ERG’s debt would be transferred to the new international company. The business would continue to face operational challenges in the Democratic Republic of Congo, including illegal mining activities affecting concessions operated by Metalkol and Boss Mining SAS.

    The potential restructuring comes amid growing international interest in critical mineral supply chains. The United States has increased its engagement in the Democratic Republic of Congo’s mining sector as part of efforts to diversify supplies of copper and cobalt away from China. In December, Washington signed a strategic partnership with the Congolese government aimed at supporting American investment in mining and infrastructure projects.

    Neither ERG nor representatives of the shareholders immediately commented on the reported plans.

  • ERG to Invest Over $1 Billion in Mining and Metallurgical Projects in Kazakhstan

    ERG to Invest Over $1 Billion in Mining and Metallurgical Projects in Kazakhstan

    Eurasian Resources Group (ERG) plans to invest more than $1 billion in its mining and metallurgical assets in Kazakhstan, marking the largest investment programme in the country in the company’s history.

    The funding will be directed primarily toward ERG’s existing operations, as well as the construction of new production facilities and projects focused on higher value-added products. The investment plans were announced by ERG CEO Shukhrat Ibragimov during a visit to one of the group’s Kazakh sites this week.

    Kazakhstan remains ERG’s core operating base, accounting for more than one-third of the country’s total metals and mining output. The company is also a major player in the Democratic Republic of Congo, where its Metalkol operation ranks among the world’s largest cobalt producers and is a significant source of copper. The government of Kazakhstan holds a 40% equity stake in ERG.

    Key projects scheduled for development this year include a hot briquetted iron (HBI) plant with a planned capacity of 2 million tonnes per year, an iron ore pelletising facility, and an 80-megawatt ferroalloy gas utilisation power station at the Aktobe ferroalloys plant in northwestern Kazakhstan.

    Additional investments will support the development of a new chromium mine with annual capacity of 7.5 million tonnes, as well as modernisation of the Aksu power station. At the Pavlodar alumina plant, ERG plans to build vertical calcination kilns, install new product filtration units, and add recovery facilities capable of producing up to 15 tonnes of gallium per year.

    Both gallium and HBI, which are used in semiconductors, advanced alloys and steelmaking, are not currently produced in Kazakhstan, making these projects strategically significant for the country’s industrial diversification.

    Separately, ERG signed a three-year cobalt supply agreement in 2024 with Electra Battery Materials to supply its refinery in Ontario, Canada. From 2026, ERG is expected to deliver around 3,000 tonnes of cobalt hydroxide annually. Once fully commissioned, the refinery could produce enough cobalt to support battery production for up to 1.5 million electric vehicles per year.

  • Kazchrome Launches AI Integration Project at Aksu Ferroalloy Plant

    Kazchrome Launches AI Integration Project at Aksu Ferroalloy Plant

    The Aksu Ferroalloy Plant of JSC TNK Kazchrome, part of ERG, has begun implementing artificial intelligence (AI) tools into its IT-based furnace management system. The pilot initiative is being rolled out on ore-thermal furnace No. 64.

    The first phase of the project has been completed, including the collection, extraction, and analysis of three months of Big Data. Initial findings confirmed the strong potential of using this data to develop a recommendation-based AI model. In the future, the system is expected to help stabilise production processes, boost efficiency and energy savings, and reduce accidents and operating costs.

    “Today, introducing AI into the mining and metallurgical sector is no longer a trend but a matter of competitiveness and industrial safety,” said project manager Ruslan Eskendirov of ERG’s Research and Engineering Centre. “Our approach is pragmatic: sensors → data → models → measurable KPIs.”

    Earlier this year, ERG assembled a project team including specialists from its research and engineering centre, IT subsidiary BTS, Kazchrome, and the group’s metallurgy department. Working with an international technology partner that has already deployed similar AI tools at ferrochrome plants abroad, the team verified that the plant’s existing data is sufficient for building effective AI modules.

    Overall, ten AI modules are planned for deployment, each designed to optimise different aspects of furnace operation. One example is a predictive tool for electrode breakage, which could significantly reduce downtime and financial losses.

    The next phase will involve creating digital modules for controlling and monitoring furnace No. 64, integrating them into the existing automated process management system. The focus will be on predictive diagnostics, intelligent process optimisation, “soft sensors,” and operator guidance. If successful, the solution will be scaled across other furnaces.

  • ERG Opens Pioneering Solar-Powered School in Kazakhstan as Part of KZT15 Billion Education Drive

    ERG Opens Pioneering Solar-Powered School in Kazakhstan as Part of KZT15 Billion Education Drive

    The KZT7.8 billion (£13.7 million) school, which can accommodate 1,200 students, is part of ERG’s “ERG mektep” (“ERG for Schools”) programme. This initiative has channelled over KZT15 billion into education in Kazakhstan in recent years.

    The new building, spanning over 19,590 square meters, is one of the largest constructed under the state-led Keleshek Mektepteri (“Schools of the Future”) initiative. It incorporates modern features focusing on ergonomics, inclusivity, and energy efficiency. The school also features advanced security systems integrated with artificial intelligence.

    Shukhrat Ibragimov, Chairman of the Board of Directors and CEO of ERG, expressed pride in the project’s inclusion in the national initiative. He quoted Kanysh Satbayev, a prominent Kazakh scientist, stating, “The future belongs to young people. But in order to be prepared for this future, they need to be equipped with knowledge.”

    The school boasts 60 classrooms, four computer labs, a STEM laboratory, a robotics room, and language labs. It also includes hydroponic systems for biology and ecology studies and a media centre with a podcast studio. Digital assistants will assist teachers, providing tailored learning tasks for students.

    A key feature of the design is its focus on inclusivity, with accessible classrooms and special elevators to accommodate students with special educational needs. The Akim of the Kostanay Region, Mr Kumar Aksakalov, praised the collaboration between government and business, stating the school “meets all modern requirements” and will “become a solid foundation for fostering honesty, hard work, patriotism and civic responsibility among the younger generation.”

    In a joint programme with the Teach for Qazaqstan foundation, four specialist STEM teachers will join the new school to strengthen technical education. ERG has a history of supporting educational infrastructure in the country, having previously funded similar projects in the Pavlodar Region and modernisations in Aksu and Khromtau.

  • Kazakhstan and DR Congo Sign Mining and Geology Cooperation Agreements

    Kazakhstan and DR Congo Sign Mining and Geology Cooperation Agreements

    Kazakhstan’s President Kassym-Jomart Tokayev and Democratic Republic of Congo (DRC) President Félix Tshisekedi have held talks, according to Kapital.kz citing the Akorda press service. The two leaders oversaw the signing of interagency agreements covering diplomatic consultations as well as cooperation in mining and geology.

    Both nations hold vast natural resources and see potential in becoming reliable partners for mutually beneficial projects. The DRC plays a central role in global supply chains of critical minerals, accounting for approximately 76% of the world’s cobalt production, 14% of copper, 8.3% of tin, 42% of tantalum, and 40% of coltan, alongside deposits of other strategic metals essential to high-tech industries.

    Kazakhstan’s Eurasian Resources Group (ERG) already operates successfully in the DRC with the support of Congolese authorities. The new agreements are expected to accelerate the development of bilateral ties in the resource sector.

    In addition, the two presidents agreed to hold regular consultations and maintain close working contacts between their foreign ministries to ensure steady progress in cooperation.

  • SSGPO Secures $400 Million Syndicated Loan for Strategic Expansion

    SSGPO Secures $400 Million Syndicated Loan for Strategic Expansion

    Sokolovsko-Sarbayskoye Mining Production Association (SSGPO), part of the Eurasian Resources Group (ERG), has opened a new syndicated credit line worth up to $400 million with other firms under common control, according to its recently published financial report. The agreement was finalised in February 2025 and is set to run until 2029. The document states that the interest rate on the loans, denominated in US dollars and euros, will be a market rate.

    This latest move follows a similar arrangement made in 2024, when SSGPO signed a syndicated credit line agreement with affiliated companies for up to $300 million, with a repayment deadline of the end of 2028. Furthermore, SSGPO acts as a co-guarantor for ERG’s loans, alongside other subsidiaries within the group. As part of the new credit line, SSGPO provided a loan of $6 million to an unnamed company under common control in June 2025.

    SSGPO’s core business is the extraction and processing of iron ore. The company holds a number of iron ore mining contracts in the Kostanay region, which are due to expire in 2033, 2035, and 2040. In addition, SSGPO is currently constructing a hot-briquetted iron plant in Rudny, which is scheduled to commence operations in late 2027. The company’s financial performance for 2024 showed an increase in revenue to 424.1 billion tenge from 389.6 billion tenge in the previous year, although it recorded a loss of 69.3 billion tenge, a slight improvement on the 71.4 billion tenge loss in 2023. The sole owner of SSGPO is ERG Iron Ore Holding B.V., which is part of the broader ERG group. The Eurasian Resources Group itself is co-owned by the Ministry of Finance of the Republic of Kazakhstan, which holds a 40% stake, with the remaining shares divided between the heirs of Alexander Mashkevich and the Ibragimov family, each with 20.7%, and Patokh Shodiev, who holds 18.6%. The Ibragimov family is listed by Forbes as the seventh wealthiest in Kazakhstan, with a net worth of $2.06 billion.

  • Eurasian Resources Group Launches Major Wind Farm in Kazakhstan

    Eurasian Resources Group Launches Major Wind Farm in Kazakhstan

    Eurasian Resources Group (ERG), a global metals and mining company headquartered in Luxembourg, has opened the Khromtau wind farm in Kazakhstan with a capacity of 150 megawatts of green energy. The project is one of the largest renewable energy facilities in Kazakhstan and Central Asia and required an investment of more than US$142 million. The wind farm is located in the Aktobe Region and includes 24 turbines. The facility will generate more than 500 million kilowatt hours of green energy annually. All in all, the facility will help reduce up to 440,000 tonnes of carbon dioxide emissions and save more than 300,000 tonnes of coal each year. The project has been implemented by ERG Capital Projects, a Group subsidiary, with financial support from the Development Bank of Kazakhstan.

    During the opening ceremony of this critical green energy project, Shukhrat Ibragimov, CEO and Chairman of the Board of Directors of ERG, said: “With its Khromtau wind power project, the Group makes a major contribution towards achieving Kazakhstan’s national goal of increasing the share of renewable energy sources. ERG is committed to ESG principles, and the new Khromtau wind power farm is a logical and very ambitious next step while implementing this. ERG’s first wind power project has already become a symbol of our transition to green energy.”

    The ESG Agenda is part of the company’s Strategy. The Group’s medium-term goal is to reduce the carbon footprint of its core products (aluminium, ferroalloys and iron ore pellets) by 30%. To achieve this, ERG is implementing projects with cumulative investments totalling US$300 million. In addition to wind power, these projects include switching the Kacharsky heating centre to gas in the Iron Ore Division, reducing steam consumption and improving the alumina production process in the Aluminium Division, and building a ferroalloy gas recycling power facility at the Aktobe Ferroalloys Plant to convert secondary energy resources into electricity.

  • Eurasian Resources Group (ERG) plans to Issues Guaranteed Bonds Worth Up to $100 Million

    Eurasian Resources Group (ERG) plans to Issues Guaranteed Bonds Worth Up to $100 Million

    Kazakhstan’s Aluminium Smelter (Kazakhstansky Elektrolizny Zavod or KEZ), a subsidiary of Eurasian Resources Group (ERG) and a primary aluminium producer, is set to issue three-year bonds worth up to $100 million, ERG has announced.

    ERG confirmed the upcoming issue of guaranteed coupon bonds, also for a three-year term, totalling up to $100 million. This marks a first for the Kazakhstani securities market: a non-government bond issue, regulated by local law, backed by Development Bank of Kazakhstan JSC as guarantor. The bonds will be listed on the Kazakhstan Stock Exchange (KASE) by KEZ, which is part of ERG and holds the distinction of being the sole producer of high-grade primary aluminium in the country.

    The bonds are denominated in US dollars and will be placed on the KASE platform. The total offering is capped at $100 million, with each bond having a par value of $1,000. They will have a three-year maturity period with coupon payments made every six months. The principal amount is due as a single bullet payment at the end of the term. This bond issue has secured an investment-grade credit rating of Baa1 from Moody’s, the international rating agency.

    Shukhrat Ibragimov, Chairman of the Board and Chief Executive Officer of ERG, commented on the development: “Eurasian Resources Group is launching its first public debt instrument in the company’s long history. This expands our financing options, aligning with our long-term business growth and capacity expansion programme. I’m pleased to acknowledge the seamless and successful collaboration between the ERG and Development Bank of Kazakhstan JSC teams, which has resulted in a non-government bond, regulated by local legislation, receiving an international investment rating for the first time in Kazakhstan. This unlocks further opportunities for Kazakhstani companies to attract financing and creates a new segment within the stock market.”

    The Development Bank of Kazakhstan has provided an irrevocable guarantee for the bonds, with the Central Securities Depository acting as the settlement agent for the issue.

    Kazakhstan’s Aluminium Smelter commenced primary aluminium production in 2007, yielding 11,000 tonnes that year. Its initial phase had a capacity of 125,000 tonnes. A second phase, with similar capacity, was launched in 2010. In 2024, KEZ produced 264,500 tonnes of aluminium.

    Separately, Kazchrome, another multinational company within Eurasian Resources Group (ERG), is planning to delist its shares from the KASE due to low liquidity and no plans for further share placements, ERG previously informed Kursiv.

    The ultimate owners of ERG are the Ministry of Finance of the Republic of Kazakhstan (40%), the heirs of Alexander Mashkevich and the Ibragimov family (each holding 20.7%), and Patokh Chodiev (18.6%). The group’s founders – Alexander Mashkevich, Patokh Chodiev, and Alijan Ibragimov – became Kazakhstan’s first dollar billionaires in 2005, according to Forbes, each with a net worth of $1 billion. Alijan Ibragimov’s stake is now held by his wife, Mukadaskhan Ibragimova, and their four sons (Dostan, Davron, Shukhrat, and Furkhat), who collectively rank seventh on Forbes’ list of the wealthiest Kazakhstani individuals, with a combined fortune of $2.06 billion.

  • ERG is Definitely Not for Sale

    ERG is Definitely Not for Sale

    Amid recent media speculation regarding the possible sale of Eurasian Resources Group (ERG), including reports of a $5 billion proposal from US investor James Cameron, Shukhrat Ibragimov—Chairman of the Board of Directors and Chief Executive Officer of ERG—has firmly denied any such negotiations.

    “ERG is definitely not for sale,” stated Ibragimov, emphasiaing that there are no ongoing discussions about the sale of the company.

    Ibragimov also reaffirmed the Group’s strategic direction, noting the management’s full commitment to “further consistent, sustainable development” and confirming there are “no changes to business as usual.” At the end of 2024, ERG’s Board of Directors adopted a new strategy aimed at further development and investment across the company’s enterprises, which has since been actively implemented.

    The company’s focus on long-term growth and creating value for all stakeholders remains unchanged, with ongoing initiatives supporting both sustainable development and ERG’s position as a key player in Kazakhstan and Africa.