$5 Billion Bid From US Investor For ERG Opens Speculations For Kazakhstan's Rare Earth Riches

American Businessman James Cameron has reportedly offered $5 billion to acquire Eurasian Resources Group (ERG), the world’s largest producer of high-carbon ferrochrome by chrome content.

ERG has been headquartered in Luxembourg since its $4.5 billion privatization in 2013, and Kazakhstan’s government has a 40% stake in its global operations, which span 16 countries and four continents. Besides ferrochrome, the company is Kazakhstan’s sole high-grade aluminum producer and has notable operations in the Democratic Republic of Congo, processing copper and cobalt.

The company is ramping up production and exploration of rare earth metals critical to green energy, electronics, and defense industries. China controls over 85% of the global rare earth supply chain, making new supply particularly valuable.

Earlier this month, Kazakhstan announced a rare earth metal deposit, with an estimated 20 million metric tons at depths up to 300 meters. These reserves, containing metals like neodymium, cerium, lanthanum, and yttrium, at an average content of 700 grams per ton, make the country’s reserves behind only China and Brazil.

Cameron, who shares the name with the unrelated filmmaker, is a former chairman of the London-listed mining firm Petropavlovsk – a former FTSE 250 gold producer that operated extensively in Russia.

The company was once one of the largest gold miners listed in London before geopolitical challenges and internal management conflicts led to its collapse.

The proposal, first reported by Reuters, outlines Cameron’s intent to finance the acquisition with Goldman Sachs 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.

ERG refuted the offer in a statement, claiming there are no negotiations to sell the firm, which proceeds with “business-as-usual,” focusing on long-term growth and creating value for all stakeholders.

The firm’s chairman and one of its founders, Alexander Mashkevich, passed last month, leaving Patokh Chodiev as the sole founder among the current shareholders and creating an opportune moment for an external bidder.

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