ERG to build $1 billion full-cycle aluminum plant in Kazakhstan

ERG Group plans to complete the second phase of its Pavlodar aluminum smelter by 2029. The nearly $1 billion project is expected to increase the company’s finished aluminum production capacity by 400,000 tons per year.

According to Daniyar Rakhmatullaev, deputy general director for strategy and development at ERG, the company intends to build the new facility at the site of the existing Kazakhstan Electrolysis Plant. Construction is scheduled to begin in 2027 and be completed between 2028 and 2029, with total investment estimated at nearly $1 billion.

The new plant is expected to increase alumina processing volumes and boost the production of high-quality finished aluminum by up to 400,000 tons annually. This would bring total annual capacity to around 650,000 tons, compared with the current 250,000 tons.

«We mine bauxite and extract alumina from it. This is the raw material to produce aluminum. Previously, we processed only a portion of the alumina into a finished product, but in the future, we will be able to process all the alumina we produce and obtain aluminum of 99.7% purity. This is high-quality aluminum certified by the London Metal Exchange and suitable for further manufacturing use,» Rakhmatullaev said.

The company also intends to expand its production value chain. For example, ERG plans to manufacture automotive wheels from its own aluminum at a facility within the special economic zone.

During the Kazakhstan-China Investment Forum, ERG held talks with potential technology partners that can supply state-of-the-art equipment for the new plant.

«China builds 60% of the world’s aluminum smelters. There are four major institutes in China that own aluminum production technologies. We built our first smelter using their technology, and it has been operating smoothly for 19 years without any issues. China possesses cutting-edge technologies, and we want to utilize them at the new plant,» the ERG representative said.

Rakhmatullaev said the company plans to finance the project using a combination of its own and borrowed funds.