ERG Mercuria copper supply agreement tightens grip on DRC copper flows

ERG

The new ERG Mercuria copper supply agreement deepens trading control over Democratic Republic of Congo copper flows. Under the deal, Mercuria will prepay up to $100mn to ERG in return for a three-year secured copper supply stream. This ERG Mercuria copper supply agreement reinforces trade-finance links between miners and global commodity traders at a time of tightening credit conditions.

Prepayment structure anchors ERG Mercuria copper supply agreement

The agreement centres on structured prepayments that lock in volumes from ERG’s DRC assets. Frontier remains ERG’s main copper site in the country, providing primary concentrates and metal to back the ERG Mercuria copper supply agreement. Meanwhile, Metalkol reprocesses legacy tailings, supplying both copper and cobalt into global battery and alloy markets.

Mercuria’s prepayment reduces ERG’s funding risk and secures long-term offtake. As a result, the ERG Mercuria copper supply agreement strengthens both sides’ balance sheets by matching upstream production visibility with downstream marketing reach. The structure follows a proven model in commodity trade finance, where traders exchange early capital for future physical flows.

DRC copper, cobalt and ferrochrome in a strategic portfolio

ERG already ranks as a major producer of cobalt and ferrochrome, alongside its copper and iron ore businesses. Therefore the new deal gives Mercuria broader optionality across critical minerals and base metals exposure, starting with copper from the DRC. Frontier and Metalkol sit within a wider African portfolio that feeds global smelting, refining and battery precursor capacity.

However, growing reliance on DRC output keeps ESG, logistics and regulatory risk firmly in focus for both partners. Supply security, community relations and power availability will remain key constraints on how far the ERG Mercuria copper supply agreement can scale. Still, the deal underlines ongoing appetite from traders to tie up strategic volumes at the mine gate.

Focus keyphrases: ERG Mercuria copper supply agreement, DRC copper supply, Frontier copper mine, Metalkol cobalt and copper, commodity trade finance

The Metalnomist Commentary

This agreement highlights how prepay-backed copper offtakes remain central to funding DRC assets in a higher-rate world. By tightening links between ERG and Mercuria, the deal concentrates marketing power over high-grade African copper at a time of structural energy transition demand. For OEMs and smelters, it is another reminder that access to units increasingly runs through a handful of well-capitalised traders.

ERG Kazakh Mining Investment Signals a Bigger Push Into Strategic Metals

ERG

ERG Kazakh mining investment marks a major expansion across mining, metals, and energy infrastructure. Eurasian Resources Group will invest $1bn in Kazakhstan operations. The plan covers new production facilities and plant upgrades. As a result, ERG Kazakh mining investment could deepen Kazakhstan’s role in strategic metals supply.

The investment stands out because it targets both existing strengths and new product categories. ERG already holds major positions in ferro-chrome, copper, cobalt, and aluminium. However, the new plan also includes gallium and hot briquetted iron. Therefore, the company is moving beyond scale toward broader industrial capability.

This strategy also aligns with Kazakhstan’s push for higher-value domestic processing. ERG is 40pc owned by the Kazakh government. That ownership gives the investment added policy importance. Meanwhile, the company is directing capital into assets that can reshape national metals capacity.

Kazakhstan Strategic Metals Strategy Expands Beyond Traditional Ferro-Alloys

Kazakhstan strategic metals development is becoming more diversified through this investment cycle. ERG plans to build production for materials not currently made in Kazakhstan. Gallium is the clearest example. Consequently, the project carries significance beyond normal mining expansion.

Gallium production Kazakhstan could gain new strategic relevance if the plan succeeds. ERG is targeting annual gallium capacity of 15t. That volume is modest in absolute terms. However, gallium matters because it supports semiconductors, electronics, and advanced industrial applications.

The broader programme also includes a new chromium mine and modernisation at Aksu Power Station. ERG will also build vertical calcination kilns and filtration units at Pavlodar Alumina Plant. These projects improve production depth rather than only adding raw tonnage. Therefore, the investment looks designed to strengthen industrial resilience.

Hot Briquetted Iron Kazakhstan Plan Adds Value to the Steel Chain

Hot briquetted iron Kazakhstan development is another important part of the package. ERG intends to advance an HBI plant and an iron ore pellet plant this year. HBI offers a cleaner and more tradable iron unit than many traditional forms. As a result, it could support both export competitiveness and lower-emission steelmaking options.

The company is also building an 80MW ferro-alloy gas utilisation power station at Aktobe. That project matters because power efficiency remains critical in ferro-alloy production. Improved energy integration can protect margins and reduce waste. Meanwhile, it can make domestic metallurgy more competitive.

ERG Kazakh mining investment therefore combines metals expansion with infrastructure reinforcement. It is not simply a capacity announcement. It is a portfolio redesign around strategic materials, processing value, and energy efficiency. That makes the programme more important than its headline number alone.

The Metalnomist Commentary

This investment shows Kazakhstan wants more than raw resource relevance. It wants stronger control over value-added metals and processing chains. If execution stays on track, ERG could become a more important strategic supplier across both traditional alloys and emerging critical materials.

ERG Ferroalloy-Gas Utilisation Plant to Boost Efficiency and Cut Emissions in Kazakhstan

ERG

Kazchrome to Convert Flared Gas Into Clean Power with 80MW Plant

Eurasian Resources Group (ERG) has announced plans to construct a new ferroalloy-gas utilisation plant, reinforcing its position in energy-efficient ferroalloy production. The 80MW facility, to be located within Kazchrome’s Aktobe Ferroalloy Plant, will convert 600,000m³ of flared gas into electricity. ERG signed an EPC contract with China Tianchen Engineering Corporation and expects to complete the $92 million project by 2026.

Power Self-Sufficiency and Cost Reduction Strategy

The ERG ferroalloy-gas utilisation plant will enable the company to increase self-generation capacity, reducing reliance on external power sources. As a result, Kazchrome’s operational costs will decline, improving its already industry-leading position in cost efficiency. The project also supports ERG’s carbon reduction goals by capturing and utilizing gas that would otherwise be flared.

Competitive Edge in the Global Ferrochrome Market

Kazchrome is already recognized for having the lowest production costs among ferrochrome suppliers to Europe. The addition of the ERG ferroalloy-gas utilisation plant will further enhance its cost advantage, making it difficult for competitors — particularly Indian producers — to match pricing. This strategic investment ensures ERG maintains long-term competitiveness while aligning with sustainability and energy efficiency targets.

The Metalnomist Commentary

The ERG ferroalloy-gas utilisation plant reflects a growing trend toward energy recovery in heavy industry. As environmental regulations tighten, ERG’s investment strengthens both its sustainability profile and cost leadership in global ferroalloy markets.

ERG Mitsubishi gallium supply deal reshapes Japan’s non-China sourcing strategy

ERG

ERG Mitsubishi gallium supply deal creates a new pathway for Japanese buyers outside China. Eurasian Resource Group signed a long-term supply agreement with Mitsubishi Corporation RtM. ERG Mitsubishi gallium supply deal matters because ERG plans first output in Kazakhstan in Q3 2026. Therefore, the deal strengthens supply chain resilience for gallium-dependent industries.

Kazakhstan gallium production will come from ERG’s Pavlodar Aluminium plant. ERG plans to recover gallium as a by-product of bauxite processing. The project targets up to 15 tonnes per year at full run-rate. However, ERG did not disclose committed tonnage to Mitsubishi.

Kazakhstan gallium production turns alumina refining into a critical minerals lever

Kazakhstan gallium production can scale faster than greenfield mining in many cases. Producers can extract gallium from Bayer process streams with dedicated circuits. This model can improve security for the semiconductor supply chain. As a result, refiners can monetize trace metals while serving strategic demand.

Mitsubishi can use the offtake to support qualification and downstream allocations. Trading houses often bridge producers and end-users during ramp-up. Meanwhile, buyers demand consistent purity, packaging, and delivery performance. Therefore, operational execution will decide how quickly volumes flow into Japan.

European gallium prices show how export controls transmit into markets

European gallium prices have surged as gallium export controls tighten global availability. China still dominates primary production and influences export approvals. China exported 62,615kg in January to November this year. That level rose 13% versus the same period in 2024. However, it fell 30% versus January to November 2022.

European gallium prices recently stood at $1,300–1,450/kg on a cif main airport basis. Prices rose 139% from the start of the year. Prices also jumped 299% from the start of China’s export controls in August 2023. Therefore, even small incremental non-China supply can move sentiment and premiums.

The Metalnomist Commentary

This deal shows how by-product projects can unlock strategic metals quickly. However, qualification risk can slow real deliveries even after first production. The winners will pair new supply with reliable specifications and transparent logistics.

Kazakhstan’s ERG to Launch Gallium Production from 2026

ERG

ERG Targets Diversification of Gallium Supply

Kazakhstan’s Eurasian Resources Group (ERG) announced plans to produce gallium starting in 2026. The company will invest $20mn to establish production capacity of up to 15 t/yr, derived as a by-product of bauxite processing. ERG stated that it aims to meet a substantial share of OECD demand for gallium, strengthening supply chain resilience and reducing reliance on China, which currently dominates the market.

Global Gallium Market Dynamics

China remains the largest gallium producer, with an estimated 1,000 t/yr of capacity. However, Beijing’s decision in 2023 to add gallium to its list of export-controlled dual-use items has reshaped the market, limiting international availability and driving up prices. The 2024 export ban to the US further underscored supply chain vulnerabilities, intensifying the search for alternative suppliers. ERG’s entry into gallium production places Kazakhstan alongside other emerging players, including US-based Indium, which recently achieved test volumes in partnership with Rio Tinto, and Greece’s Metlen, planning up to 50 t/yr by 2028.

The Metalnomist Commentary

ERG’s move into gallium reflects mounting global pressure to diversify critical mineral supply chains away from China. While the scale of its planned output remains modest compared to Chinese production, even incremental volumes could prove strategically significant in stabilizing OECD markets. Success will depend on ERG’s ability to secure offtake agreements and integrate into high-tech industries reliant on gallium for semiconductors and optoelectronics.

US Awards $20 Million to Electra for North America's First Cobalt Sulfate Refinery

The U.S. Department of Defense (DOD) has awarded $20 million to Canadian company Electra Battery Materials to support the completion of North America's first cobalt sulfate refinery, located in Ontario. This strategic investment aims to boost the production of critical materials essential for lithium-ion batteries used in electric vehicles (EVs) and other advanced technologies.

The Ontario refinery, once operational, will produce 5,000 metric tons per year of precursor cathode active material (pCAM), a key component for EV batteries. The funding, sourced from the 2022 Additional Ukraine Supplemental Appropriations Act, will help Electra overcome financial shortfalls that had stalled the $250 million project. As of mid-May, Electra reported needing an additional $60 million to finish construction.

Electra has yet to announce when the refinery will begin operations, but the company has secured key supply and offtake agreements. In April, Electra signed a three-year deal with Eurasian Resources Group (ERG) to source 3,000 metric tons of cobalt hydroxide annually. Additionally, in July 2023, Electra extended an offtake agreement with LG Energy Solutions, committing to supply 19,000 metric tons of cobalt sulfate over a five-year period starting in 2025.

This project aligns with the DOD's broader goal of strengthening domestic supply chains and reducing U.S. reliance on China, which currently dominates the global cobalt refining market. Electra is also exploring the possibility of establishing a second cobalt sulfate refinery in Quebec and constructing a nickel sulfate plant elsewhere in North America.

In addition to its cobalt production plans, Electra is advancing its efforts to recycle critical minerals from battery scrap. As part of a pilot program, the company has successfully recovered nickel, lithium, and cobalt from 40 metric tons of black mass. In June, the Canadian government awarded Electra $5 million to further these recycling initiatives.

The completion of Electra's cobalt sulfate refinery is expected to play a pivotal role in securing a stable and sustainable supply chain for North America's burgeoning EV market, contributing to the continent's energy independence and technological advancement.