ASTANA – Shukhrat Ibragimov, the Eurasian Resources Group CEO, stated there are no negotiations on the sale of ERG, following a number of media reports in the last few weeks, including publications about U.S. businessman James Cameron’s proposal to buy ERG.
Photo credit: erg
“ERG is definitely not for sale,” said Ibragimov.
“The company’s management is fully committed to further consistent, sustainable development of the group. There are no changes to business as usual. At the end of 2024, the board of directors adopted a new strategy aimed at the development and investment in ERG’s enterprises and the company has been implementing it,” reads the company’s statement.
Cameron has offered to buy mining giant ERG for $5 billion, a letter he sent to its board showed, as the company prepares to participate in a major expansion of Kazakhstan’s rare earths output, reported Reuters.
Kazakhstan’s Prime Minister Olzhas Bektenov said last year that data concerning the country’s deposits of rare and rare earth metals, a state secret since Soviet times, is being gradually declassified. If confirmed, this discovery could position Kazakhstan among the top three holders of rare earth reserves globally, following China and Brazil.
ERG once produced one-fifth of the world’s gallium, a rare metal used in microchips and included on the U.S. list of critical materials. However, it ceased production after China increased its output of the metal in 2012.
Beijing banned gallium exports to the U.S. in December after a crackdown by Washington on China’s chip sector.
In 2013, ERG was taken private in a $4.5 billion buyout by its three founders, who each owned approximately 20% of the company, along with the government.
ERG is a leading diversified natural resources group with integrated mining, processing, energy, logistics and marketing operations. It has a portfolio of production assets and development projects on four continents and is represented by over 75,000 employees, which makes the group one of the largest employers in the global industry.
ERG operates in 14 countries. It is the world’s largest ferrochrome producer, one of the most significant iron ore exporters, a top 10 alumina supplier and a principal producer of copper and cobalt.
