ERG to Launch Gallium Project in Kazakhstan

Eurasian Resources Group (ERG) plans to invest $20 million in a new project to produce gallium in Kazakhstan, with operations expected to begin next year, Orda.kz reports.

According to Reuters, the company intends to extract gallium from bauxite ore. Gallium is listed as a critical mineral by both the United States and the European Union, due to its use in semiconductors, radar systems, and electronic missile guidance technologies in the defense and aerospace sectors.

Currently, Kazakhstan does not produce gallium.

If the project proceeds as planned, the country could become the world’s second-largest supplier after China. ERG plans to export Kazakhstani gallium to member countries of the Organization for Economic Cooperation and Development (OECD).

According to ERG CEO Shukhrat Ibragimov, Kazakhstan’s annual gallium output could eventually reach 15 tons. Global production currently totals around 760 tons annually, with China leading by a wide margin.

Smaller producers include Japan, South Korea, and Russia.

In December 2024, China halted gallium exports to the U.S. in response to tightened restrictions on microchip trade. This has increased interest in alternative suppliers, including Kazakhstan.

ERG is headquartered in Luxembourg.

Forty percent of its shares are held by the Kazakh government, while the remaining 60% are owned by Patokh Chodiev, the Ibragimov family, and the heirs of Alexander Mashkevich.

CEO Shukhrat Ibragimov is ranked seventh on Forbes Kazakhstan’s list of the country’s wealthiest individuals, with a family fortune exceeding $2 billion.

In April, reports surfaced suggesting a potential $5 billion offer from a U.S. investor to acquire ERG, reportedly linked to plans to resume gallium production in Kazakhstan.

The company denied the claims.

Original Author: Nikita Drobny