Eurasian Resources Group (ERG), a Luxembourg-based mining giant that produces copper, cobalt, aluminium and iron ore, has denied engaging in negotiations to sell the company, responding to media speculation around a $5bn (€4.36bn) proposal from US businessman James Cameron.
Cameron made an offer to acquire ERG, reported Reuters, citing a letter addressed to the company’s board.
Cameron has reportedly been in discussions with ERG since late last year. In his letter to ERG, seen by Reuters, Cameron stated that Goldman Sachs is in preliminary talks to advise on the proposed deal, with funding to come from a mix of personal investment and equity from US, Australian and Middle Eastern investors.
One source familiar with the matter said Cameron’s interest is closely tied to Kazakhstan’s growing significance in the global critical minerals market.
The move was expected to play a central role in ERG’s Kazakhstan rare earths expansion.
ERG is 40% owned by the Government of Kazakhstan. The company was taken private in 2013 through a $4.5bn deal involving its three founders and the Kazakh Government.
The company’s chairman and CEO, Shukhrat Ibragimov, clarified that no negotiations are taking place regarding the sale of the company.
He emphasised that ERG’s management remains firmly focused on the group’s consistent and sustainable growth.
In a press statement, the company said: “In response to a number of media speculations in the course of the last few weeks, including publications about a Mr James Cameron’s proposal to buy Eurasian Resources Group (ERG), Mr Shukhrat Ibragimov, chairman of the ERG board of directors and its chief executive officer, stated there are no negotiations on the sale of ERG.”
At the end of 2024, the company’s board approved a new strategy centred on further development and investment across ERG’s operations, which is currently being implemented.
ERG previously announced plans to ramp up exploration of rare earths and rare metals within Kazakhstan, aligning with the country’s ambition to increase production of such minerals by 40% by 2028.
A recent discovery by Kazakh geologists estimated more than 20 million tonnes (mt) of rare earth resources, a volume that could place the country among the top three global holders of such reserves, alongside China and Brazil.
Last month, it was reported that UK-based miner Brazil Iron has submitted a bid of around $1bn (£747.85m) to acquire the Bahia Mineração project (Bamin) in Brazil from ERG.
The Bamin project, managed by ERG’s subsidiary Bahia Mineração, is an integrated mining and logistics venture that has garnered interest from multiple stakeholders.
