Latest news with #EurasianResourcesGroup
Reuters
13 hours ago
- Business
- Reuters
Congo considers extending cobalt export ban as it weighs quotas, sources say
JOHANNESBURG, June 20 (Reuters) - The Democratic Republic of Congo is considering extending a ban on exports of cobalt, as it explores how to implement quotas for shipments of the electric vehicle battery material, four sources familiar with the discussions told Reuters. Congo is likely to continue with the ban because the government wants more time to work out how to distribute export quotas among mining companies that produce the battery vehicle metal, said the sources, who cannot be named because the matters are confidential. The world's top cobalt supplier in February imposed a four-month ban on cobalt exports that expires on Sunday, as it sought to curb oversupply and breathe new life into prices for the metal that had hit a nine-year low. A proposal to implement quotas has backing from producers including Glencore (GLEN.L), opens new tab , the world's second-largest cobalt-producing company. However, Glencore's position differs with that of CMOC Group ( opens new tab , which has lobbied for the ban to be lifted. Eurasian Resources Group, another key Congo producer, also wants the ban lifted and is eager to hear more details from the government on how the quotas on cobalt exports would be implemented, a separate source told Reuters. The government is not fully united on extending the ban, according to Zack Hartwanger, head of commercial, Africa at Swiss-based commodity trader Open Mineral. "Some (in government) raised concerns about revenues, employment, and informal supply chains," Hartwanger said. "There's tension between industrial policy goals and economic realities." CMOC, the world's top cobalt-producing company, and Congo's Ministry of Mines did not respond to emailed questions from Reuters. The Authority for the Regulation and Control of Strategic Mineral Substances' Markets, or ARECOMS, which is responsible for implementing the cobalt export curbs, did not respond to emailed questions. CMOC is ramping up cobalt output at its two mines in Congo, where the battery material is produced as a byproduct of copper, even as demand from electric vehicles manufacturers is down as the sector's growth slows. The market glut depressed prices to as low as $10 a pound or $22,000 a ton in February.
Yahoo
22-04-2025
- Business
- Yahoo
Eurasian Resources dismisses speculation regarding potential $5bn acquisition
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. "Eurasian Resources dismisses speculation regarding potential $5bn acquisition" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Sign in to access your portfolio
Zawya
22-04-2025
- Business
- Zawya
US investor Cameron offers $5bln for Kazakh mining giant, ERG says no sale talks
MOSCOW - U.S. businessman James Cameron has offered to buy mining giant Eurasian Resources Group 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. However, ERG said in a statement on Monday that there were no negotiations on the company's sale. ERG, a Luxembourg-based producer of copper, cobalt, aluminium, and iron ore that is 40%-owned by the Kazakh government, said last year it had formed a task force to explore deposits of rare earth and rare metals in Kazakhstan. Those minerals have gained particular attention in recent months as U.S. President Donald Trump's administration seeks alternatives to China to supply its domestic industry as a trade war between the countries escalates. According to a source close to the company, talks between ERG and Cameron have been going on since the end of last year. Cameron shares a name with the Academy Award-winning film director, but the two are not related. But ERG's statement 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. He said the company's management is fully committed to further consistent, sustainable development of the Group." The Kazakh government, and Cameron, once a board chairman of former FTSE 250 mining firm Petropavlovsk, did not comment. According to Cameron's letter to the ERG board, a copy of which was obtained by Reuters, Goldman Sachs is in preliminary talks to advise on the deal. "The financing will come from a combination of my own funds, as well as equity contributions from other investors in the United States, and possibly Australia and the Middle East," the letter said. Another source close to the transaction told Reuters the investor's interest in ERG is partly linked to Kazakhstan's potential in critical minerals exploration and mining. Kazakhstan aims to lift rare and rare earth metals output by 40% by 2028, with ERG seen taking a major role in the initiative. This month, Kazakhstan's government announced that its geologists had discovered a large rare earth deposit with estimated resources exceeding 20 million metric tons. 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 in December banned gallium exports to the U.S. 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. Last month, one of ERG's founders and its board chairman, Kazakh-Israeli businessman Alexander Mashkevich, passed away, leaving only one of the original founders, Patokh Chodiev, among the current shareholders. (Additional reporting by Mariya Gordeyeva in Kazakhstan; Editing by Guy Faulconbridge, Jan Harvey and Daren Butler)
Yahoo
21-04-2025
- Business
- Yahoo
Exclusive-US investor Cameron offers $5 billion for Kazakh mining giant ERG, letter shows
By Gleb Bryanski MOSCOW (Reuters) -U.S. businessman James Cameron has offered to buy mining giant Eurasian Resources Group 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. ERG, a Luxembourg-based producer of copper, cobalt, aluminium, and iron ore that is 40%-owned by the Kazakh government, said last year it had formed a task force to explore deposits of rare earth and rare metals in Kazakhstan. Those minerals have gained particular attention in recent months as U.S. President Donald Trump's administration seeks alternatives to China to supply its domestic industry as a trade war between the countries escalates. According to a source close to the company, talks between ERG and Cameron have been going on since the end of last year. ERG, the Kazakh government, and Cameron, once a board chairman of former FTSE 250 mining firm Petropavlovsk, did not comment. According to Cameron's letter to the ERG board, a copy of which was obtained by Reuters, Goldman Sachs is in preliminary talks to advise on the deal. "The financing will come from a combination of my own funds, as well as equity contributions from other investors in the United States, and possibly Australia and the Middle East," the letter said. Another source close to the transaction told Reuters the investor's interest in ERG is partly linked to Kazakhstan's potential in critical minerals exploration and mining. Kazakhstan aims to lift rare and rare earth metals output by 40% by 2028, with ERG seen taking a major role in the initiative. This month, Kazakhstan's government announced that its geologists had discovered a large rare earth deposit with estimated resources exceeding 20 million metric tons. 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 in December banned gallium exports to the U.S. 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. Last month, one of ERG's founders and its board chairman, Kazakh-Israeli businessman Alexander Mashkevich, passed away, leaving only one of the original founders, Patokh Chodiev, among the current shareholders. (Additional reporting by Mariya Gordeyeva in Kazakhstan; Editing by Guy Faulconbridge and Jan Harvey) Sign in to access your portfolio
Bloomberg
21-03-2025
- Business
- Bloomberg
Brazil Iron Said to Make $1 Billion Offer for Eurasian Resources Mine Project
Brazil Iron Ltd. has made an offer of about $1 billion to buy a South American mine project owned by Eurasian Resources Group, according to a person familiar with the matter. The closely held British company is seeking to acquire ERG's Bahia Mineração, also known as Bamin, for its integrated mining and logistics project in northeast Brazil that includes an iron ore mine, a future deep sea port and rail link. Brazil Iron signed a non-disclosure agreement with Kazakhstan-backed ERG, said the person, who asked not to be identified discussing a private deal.
