ERG to invest $20 million in critical material production
Kazakhstan’s Eurasian Resources Group (ERG) is set to allocate $20 million to gallium production, as reported by Reuters. This metal is vital for electronics and radar systems.
Gallium is on the critical materials lists of the U.S. and the European Union. The company, which has never produced the resource before, aims to become the world’s second-largest producer behind China. ERG plans to produce gallium from the bauxite ore processed at its facilities to make alumina.
«ERG plans to become a significant player in the global market for gallium, starting production in 2026 to supply OECD countries, with a view to expanding annual volumes up to 15 metric tons per annum,» said Shukhrat Ibragimov, chairman of the board of managers and group CEO.
The U.S. Geological Survey reported that global gallium production reached 760 tons last year. The largest contributor was China, while other producers such as Japan, South Korea and Russia accounted for only a small portion of that output. At the same time, China restricted exports of the metal to the U.S. amid the ongoing trade conflict.
In early June, ERG’s General Director Serik Shakhazhanov told Kursiv.media that the company was exploring the possibility of producing gallium from red mud waste at the Pavlodar Aluminum Plant, with the aim of exporting it to Europe. At the time, the annual production volume was estimated at 12 tons. ERG also stated that preparatory work to launch production, scheduled to commence in Q4 2026, is currently underway.
Also in early June, the Kazakhstan Electrolysis Plant, a member of ERG engaged in aluminum production, announced the issuance of three-year maturity bonds totaling $100 million. According to the company, the funds are intended to support long-term business growth and a capacity expansion program.
Around the same time, ERG reported discovering a major copper porphyry site in central Kazakhstan, estimated to contain 250,000 tons of copper with an average grade of 0.35% copper equivalent, amid forecasts that global copper demand will exceed supply by 30% by 2035.
The ultimate beneficiaries of ERG are the Ministry of Finance of Kazakhstan (40%), the successors of Alexander Mashkevich and the Ibragimov family (20.7% each), and Patokh Chodiev (18.6%). ERG’s founders — the late Mashkevich, Chodiev and the late Alijan Ibragimov — became Kazakhstan’s first dollar billionaires in 2005, each with equity worth $1 billion, according to Forbes. Ibragimov’s share is currently distributed among his wife Mukadaskhan Ibragimova and four sons — Dostan, Davron, Shukhrat and Furkhat — who collectively rank seventh on Forbes’ list of the richest Kazakhstanis, with a net worth of $2.06 billion.
