Eurasian Resources Group (ERG), one of the world’s largest diversified mining and metals producers, has announced plans to invest more than $1 billion in Kazakhstan in 2026—the biggest single-year capital commitment in the company’s history within the country.
The announcement was delivered by ERG’s CEO and Chairman, Shukhrat Ibragimov, during a recent site visit, reinforcing Kazakhstan’s central role in the group’s long-term growth strategy. The масштаб of the planned spending signals not only corporate expansion but also a broader transformation of Kazakhstan’s metals sector—from primarily raw material extraction toward higher-value industrial production.
Strategic Shift Toward Value-Added Metal Production
The 2026 investment program will span ERG’s mining and metallurgical operations across Kazakhstan, focusing on expanding domestic processing capacity and launching new facilities that produce higher-margin industrial outputs currently not manufactured within the country.
Among the flagship initiatives is the construction of a hot briquetted iron (HBI) plant with a projected annual capacity of approximately 2 million tonnes. HBI is a premium feedstock for modern steelmaking and is increasingly relevant in hydrogen-ready and lower-emission steel production systems. This positions Kazakhstan to participate more actively in evolving global environmental and decarbonization trends within heavy industry.
ERG also plans to build an iron ore pelletising plant, designed to improve feedstock quality for downstream metallurgical consumers. Pelletised iron ore enhances furnace efficiency and reduces emissions intensity, aligning with global efforts to modernize steel production chains.
Power, Ferroalloys and Critical Metal Expansion
Beyond iron-related projects, ERG’s 2026 investment program includes infrastructure upgrades and capacity expansions across multiple strategic assets.
At the Aktobe Ferroalloys Plant, the company intends to construct an 80 MW gas-utilisation power station, capturing industrial gases to generate electricity more efficiently. This initiative not only reduces operational costs but also improves environmental performance.
Further modernization is planned at the Aksu Power Station, strengthening energy reliability for ERG’s integrated mining and metallurgical operations. Stable power supply remains critical for ferroalloy and alumina production, where energy intensity directly influences competitiveness.
At the Pavlodar Alumina Plant, ERG will expand processing capabilities through the installation of vertical calcination kilns and upgraded filtration units, enhancing product quality and efficiency.
Importantly, ERG is also targeting diversification into gallium production, with projected output of up to 15 tonnes annually. Gallium is a critical material for high-performance electronics, semiconductors, and advanced tech applications. As global demand for digital infrastructure grows, securing stable gallium supply becomes strategically important for industrial economies across Europe and Asia.
Strengthening Kazakhstan’s Position in Global Metals Markets
ERG’s operations already represent a substantial share of Kazakhstan’s mining and metals industry. The company is active in ferroalloys, chromium, alumina, and iron ore—commodities essential to global steel and manufacturing supply chains.
While ERG does not primarily focus on gold, copper, or silver, its investments support the broader ecosystem of industrial metals and feedstock production that underpins global infrastructure development. By expanding value-added output rather than exporting unprocessed raw materials, Kazakhstan can capture greater economic returns and strengthen its role in international trade.
The scale of the 2026 capital program reflects a deliberate strategy to move the country further up the metals value chain—shifting from exporter of bulk commodities to producer of advanced intermediate materials.
Sustained Capital Growth Signals Long-Term Commitment
The announcement builds on a period of elevated capital expenditure. In 2025, ERG’s investments in Kazakhstan were already approaching the $1 billion level, driven by modernization, efficiency upgrades, and production expansion.
The continuation—and expansion—of this spending trajectory into 2026 demonstrates long-term confidence in Kazakhstan’s industrial base, regulatory framework, and geopolitical positioning as a key supplier to both European and global markets.
Such sustained investment also supports domestic employment, strengthens industrial supply chains, and encourages technological upgrading across related sectors.
Transitioning Beyond Raw Commodity Exports
By channeling more than $1 billion into advanced production facilities, ERG is actively reshaping Kazakhstan’s industrial identity. The emphasis on HBI, pelletising, energy modernization, and critical minerals such as gallium reflects a broader global trend: countries rich in resources are seeking to retain more value within their borders.
This transformation reduces reliance on simple commodity exports and enhances export earnings through higher-margin metal products. It also aligns Kazakhstan more closely with international decarbonization and industrial modernization initiatives.
If executed as planned, ERG’s 2026 investment program could mark a pivotal moment for Kazakhstan’s mining and metallurgical sector—strengthening its competitiveness in the world metals market, reinforcing supply chain resilience, and accelerating its transition toward advanced industrial production.
