MINEX Forum

Tag: SSGPO

  • 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.

  • For the first time at SSGPO, new equipment has been produced for the factory complex

    For the first time at SSGPO, new equipment has been produced for the factory complex

    “For the first time at the Sokolov-Sarbaysk Mining and Enrichment Production Association (SSGPO), a subsidiary of ERG (Eurasian Resources Group), the employees of the repair-mechanical metallurgical plant have manufactured a bath for a magnetic separator. This bath is a crucial component in the enrichment of strongly magnetic ores through the wet separation method. Producing this equipment in-house will lead to a reduction in the cost of the final product.

    Within the ore enrichment section of the SSGPO factory complex, 280 separators of various types and sizes are installed. The majority of these are the PBM-P-120/300 separators, which play a role in enriching ore and materials with a size of 3 mm, dividing them into two products: magnetic and non-magnetic.

    These mechanisms consist of a magnetic drum and a counter-flow bath. The wear of the latter impacts the loss of produced iron ore concentrate, which goes to tailings and is disposed of in tailings storage.

    To address this situation, the question of producing counter-flow baths within the conditions of the repair-mechanical metallurgical plant (RMMZ) was thoroughly examined. The first trial bath for the PBM-P-120/300 separator has been manufactured.

    “Employees of the factory approached us with a proposal to create equipment necessary for the technological production chain,” explains Denis Shein, the master of the metallurgical constructions section at RMMZ. “We used stainless steel for manufacturing, a material we hadn’t worked with before. We modernized and reconfigured our own equipment. Four repair fitters and three electric gas welders, led by a master, completed the task within a month. Currently, we have produced one frame and a magnetic separator bath in a trial version. In the future, we will reach the planned production rates.

    Achieving the optimal operating mode for the modern equipment will occur in the near future. The production process for the baths will be put into full operation afterwards. According to preliminary data, 80 units of the new equipment are needed.

    “The proposed systemic work will not only make the production process more flexible and reduce dependence on external suppliers but will also expand the possibilities of the enterprises,” says Alexey Shtal, the head of the mechanics department in the Industrial Complex. “We can now replace old separator mechanisms with new ones and outline a joint action plan. The bath is manufactured at the plant and sent to the factory before planned preventive work on the technological section. During maintenance work, equipment modernization is conducted.

    This proposed system will reduce the need for repairs, prevent the loss of iron ore concentrate, and decrease the cost of the final product.”