American Investor Proposes $5 Billion Deal for ERG - Reuters

American investor James Cameron has proposed acquiring the Eurasian Resources Group (ERG) for $5 billion. ERG is currently preparing to develop a significant rare earth metal deposit in Kazakhstan, Orda.kz reports.

According to Reuters, negotiations between Cameron and ERG have been underway since the end of last year.

Kazakhstan currently owns 40% of the company, which was initially founded by the late oligarch Alexander Mashkevich and his business partner Patokh Shodiev. Reuters claims to have reviewed a letter sent by Cameron to the ERG board, in which he mentions that the American bank Goldman Sachs is acting as a consultant for 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, Cameron said in the letter.

James Cameron is the former head of Petropavlovsk PLC (formerly Peter Hambro Mining PLC), a gold mining company that operated in the Russian Far East.

Cameron’s interest in acquiring ERG is tied to the discovery of new rare earth deposits in Kazakhstan and the potential for their development. By 2028, Kazakhstan aims to boost rare metal production by 40%, with ERG expected to play a key role in this expansion.

ERG was once responsible for approximately 20% of the world’s gallium supply — a rare and valuable metal critical to modern electronics. The company ceased mining operations after China ramped up its production.

However, since Beijing banned gallium exports in December as part of its trade dispute with the United States, ERG may resume operations to help meet global demand.

Reuters does not clarify whether any preliminary agreements on the ERG sale have been reached.

However, should the transaction proceed, the company — despite being officially registered in Luxembourg —could emerge as a significant competitor to China in the rare metals market and a vital exporter of critical materials to the United States.

Original Author: Nikita Drobny