A New Era at ERG: Shukhrat Ibragimov Takes the Helm
In an exclusive interview with Forbes Kazakhstan, the CEO of Eurasian Resources Group discussed the key tasks ahead and addressed rumors regarding an alleged sale of the group’s assets
I met with Shukhrat Ibragimov in Almaty, in the same office where, essentially, the history of one of the world’s largest mining companies, Eurasian Resources Group (ERG), began. The interior looks almost untouched by the three decades, a striking reminder of the 1990s: a heavy polished conference table by the window, matching chairs, and a small cabinet with shelves holding an assortment of mementos from the early post-Soviet era. Among them, I noticed well-preserved scale models of the first haul trucks and slightly faded photographs in wooden frames. Against a white wall, there are two leather sofas, seemingly frozen in time, awaiting their moment. It was apparently on these very sofas that the founders of ERG once sat; two of them, Alijan Ibragimov and Alexander Machkevitch, passed away in February 2021 and in March 2025 respectively, while Patokh Chodievturned 72 in April.
«Everything here has been kept as it was in my father’s time. I didn’tallow any changes or rearrangements, ” the businessman explains before the main part of our interview begins. «This is more than just furniture and an office; it’s a piece of history–a place where important documents were signed and countless ideas were generated, many of which later turned into large-scale projects.»
Interestingly, the office also holds personal significance forIbragimov Jr. He began to be involved in the family business at the age of 12, accompanying his father, Alijan Ibragimov, to meetings and sitting in on all company discussions. «As a young boy, I would be forhours here during negotiations, aiming to jot down everything I heard in a notebook. What I didn’t understand, I’d ask my father later, ” he recalls, pointing to one of the sofas. «My father would sit at the table, and I’d be directly opposite him, always trying to catch his eye.»
Of course, Shukhrat could hardly have imagined back then that, justover 25 years later, he would lead the Group and oversee the entirebusiness himself. In July 2024, he was elected Chairman of ERG’s Board of Directors, and less than three months later, he was appointed the Group CEO. Today, he also chairs the Supervisory Board of Eurasian Group LLP and serves on the Board of Directors of Eurasian Financial Company JSC. In addition, he is the Chairman of the Board at Eurasian Bank and Eurasia Insurance Company.
As a teenager, Shukhrat sought ways to spend more time with his father, aspiring to become his support and right-hand man. «As long as I can remember, he was always extremely busy, leaving for work at 7 a.m. and returning home late at night. My brothers and I barely saw him, ” the businessman reminisces.
A quarter of a century later, Ibragimov Jr., as ERG’s CEO, handlestasks more ambitious than those ever encountered by his predecessors.
«Our primary goal now is to improve efficiency and scale up production across all segments–from ferrochrome to aluminum and alumina, and from concentrate to value-added products, ” he explains. «Another critical task is to fully leverage our internal infrastructure to optimize costs and strengthen control over supply chains, preventingdisruptions and minimizing reliance on external suppliers.»
At the same time, the company’s key KPI is an increase in profit margins. «Today, we handle everything from mining and processing totransportation. But now we need to progress to the manufacture of high-margin products, as the President of Kazakhstan has repeatedly stated, ” the businessman said, outlining the company’s strategic direction. In this regard, ERG has clear investment criteria: the internal rate of return (IRR) for projects must be 25% or higher.
ERG’s CEO emphasizes that this is a strategy spanning at least 20 years, not just five or ten. «We aim to fundamentally reshape ourbusiness model — evolving from a commodity-based company to onethat will also deliver high-tech products. This is a challenging task that requires substantial investment and involves competing with strong players, but there is no other way, ” he states.
By the way, ERG’s shareholders currently include the Government of Kazakhstan (with a 40% stake), the Ibragimov family (20.7%), the heirs of Alexander Machkevitch (20.7%), and Patokh Chodiev (18.6%).
A Second Life for Ore and 150 MW of Wind Power
Over the past two to three years, ERG has increased investments in its Kazakhstan-based enterprises by 40%. «We have strengthened our focus on Kazakhstan, reinvesting in modernization, new projects, operational efficiency, and cost optimization. We are redesigning our organizational structure, moving away from large corporate offices toward a more agile, production-focused divisional model, ” Ibragimovexplains.
Several major strategic projects in the mining sector have been implemented under his leadership. These include the ERG Green factory focused on tailings reprocessing in Khromtau in the Aktobe Region. The project was launched in 2024 and expanded in 2025, when the company added a new flotation line enabling the recovery of ferrochrome fines; in the past, it was impossible due to technological constraints. The project has been developed and launched by ERG’s experts. «Investment in flotation has totaled approximately $45 million; essentially, this has involved building a new production facility, ” the businessman points out. He reveals that the total budget of ERG Green has exceeded $200 million.
Another major project, with an investment of around $2 billion, is the new Bolashak mine at Donskoy GOK. The highly automated mine has a design capacity of 7.5 million tons of chrome ore per year. The launch of this mine has enabled the company to set a world record for high-carbon ferrochrome production: 177 tons in a single processcycle, on the back of a significant reduction in raw material losses. «By comparison, our closest competitors produce 92–95 tons per cycle. Our result is almost double the global average, ” ERG’s CEO notes.
The third strategic project is the construction and launch of a 150 MW wind farm in 2025, also in the Aktobe Region. «This is the largest wind farm in the region. The construction itself was in record time—less than a year—whereas such projects typically take several years to complete, ” Shukhrat emphasizes.
Investment in the project has totaled about $160 million. The wind farm is expected to generate up to 460 million kWh per year. «A significant portion of electricity consumed by our operations is now supplied by this wind farm. As a result, we already produce the so-called ‘green’ chrome, ” ERG’s CEO says. According to him, the commissioning of the wind farm not only reduces energy costs butalso boosts the company’s ESG profile and its competitiveness in global markets.
From Carbon to Coal Chemicals
Meanwhile, ERG’s coal division is undergoing a large-scale transformation. Two and a half years ago, the company launched special coke and semi-coke production at the Shubarkol coal deposit. The product has fully replaced imported petroleum coke previously used at the ferroalloy plants in Aksu and Aktobe, according to Ibragimov. The new coke plant has a capacity of 400,000 tons per year. Investment in the project has exceeded $120 million.
«Currently, we are also considering a shift from traditional mining to advanced processing, specifically towards coal-to-liquid and coal-to-chemicals, ” he continues. «These technologies make it possible to produce fuel, propylene, polyethylene, and other chemical products from coal.» For instance, Shubarkol Komir, an enterprise of ERG Group, already has a specific plan in this regard. This, however, calls for strategic partners. And these partners must have extensive experience, financial resources and technologies, the businessman points out. Negotiations are currently underway with Chinese and Japanese companies.
HBI: Metal for a New Era
Speaking about the future, Ibragimov highlights the construction of a hot briquetted iron (HBI) plant in Rudny. It is a product with a metallization rate of at least 93% and pure iron content exceeding 90%; it is used by steelmakers worldwide.
«This is a large-scale project that meets the highest ESG standards, ” he notes. «Today, it is critical for manufacturers to reduce waste and their carbon footprint. Our product addresses these challenges: it is ‘clean’ and convenient for transportation and processing.»
HBI will be produced from the company’s own iron ore concentrate and pellets. «This will mitigate commodity cycle risks and ensure stable output—even in times of crisis, ” ERG’s CEO explains.
The project is valued at $1.2 billion. The company intends to implement it using conventional project financing instruments, as well as its own funds, Ibragimov adds.
According to him, the decision to shift to HBI is driven not only by ERG’s development strategy, but also by the new geopolitical reality. «After sanctions were imposed against some of our customers, we lost more than half of our sales volumes. Accordingly, we now need to produce a product capable of reaching markets beyond our current delivery range, ” ERG’s CEO explains.
The first phase of the project has a design capacity of 2 million tons per year, with nearly all output destined for export, as there are currently no domestic capacities to consume HBI. «If the business model proves successful, we will expand production. But for now, export is our priority, ” Ibragimov comments.
My interviewee cites logistics as the main hurdle. «We operate in a landlocked region. To deliver our products to ports, we have to transit other countries and cover long distances. This significantly impacts our cost structure. This is why it is critically important for us to develop fast, low-cost delivery routes, ” he explains.
Betting on Gallium
Another strategic move for ERG is the production of gallium, a rare metal that is essential for the production of microchips, lasers, and LEDs. «We are already starting to build the plant, ” Shukhrat notes. «This initiative is part of the processing of bauxite ore into alumina at our aluminum operations. Gallium is extracted as a by-product.»
Commissioning is scheduled for 2026. The first stage will have a capacity of 15 tons per year, with a potential for expansion to 18–20 tons. The global gallium market is estimated at just 740 tons per year, with 85 to 90% of supply controlled by China. «This means that our Aluminum of Kazakhstan operation will become one of the largest gallium producers outside China, ” the businessman predicts.
Initial investment required for the launch of the first stage will exceed $20 million, but with plans for further expansion in the future. «Japan will be our primary export market, ” he adds. «For our Japanese partners, it is essential to work in a stable jurisdiction like Kazakhstan, also with ERG, as they already have a proven track record of such collaboration with our company.»
Although the production process will be highly automated, the operation will create approximately 100 new jobs. ERG’s CEO is convinced that it will help secure Kazakhstan’s position on the global technology map.
Import Substitution: Kazakh Style
The Group is also actively developing its ERG Service division, which produces spare parts and components for heavy industrial equipment in-house. «The disruption of many supply chains between 2020 and 2022 made us realize that we cannot afford to just rely on external suppliers, ” Ibragimov shares. «Every hour of factory downtime results in direct losses. That’s why we have formed a separate team and started to produce everything, from bolts to mill balls, in-house.»
ERG Service currently produces over 3,000 types of parts and equipment, including strategically important units for power plants, mining and metals enterprises. Almost all these products support the development of the domestic market, including supplies to the company’s own plants.
Artificial Intelligence Deep Down in Mines
Examples of technological experiments and the adoption of AI in ERG’s enterprises include the piloting of autonomous dump trucks. «These are driverless vehicles: they go to the open-pit mine, are loaded, complete the trip, and return to base in full automation mode. There is also a remote-controlled version, where operators monitor the vehicles from a control center without being physically present in the cabs, ” Ibragimov explains.
The pilot project is being implemented at the Vostochny open-pit coal mine. Unmanned trucks have already transported over 4.5 million tons of overburden. «This is not third-party equipment. This system has been developed and implemented by our own team. Of course, going forward we will also work with international companies to scale the solutions. But we have laid the foundation ourselves, ” ERG’s CEO emphasizes.
He adds that at the Kacharsky mine, in the Group’s iron ore division, which includes SSGPO and Kachary Ruda, ERG is implementing the Smart Mine project. AI is also used in mine planning. «Geologists oversee the process, but AI helps calculate optimal mining plans. It provides precise calculations of efficiency, cost, and opportunities, suggesting areas for development. The machine is uncompromising—it calculates without emotion. This makes planning more accurate and efficient, ” Ibragimov says.
According to Mr Ibragimov, the operation of the mining and metals sector is highly dependent on the quality and composition of ore. «It is a highly responsive system. If the grade of the input ore has changed, technologists and metallurgists need to make adjustments instantly. This is why full robotic automation in our sector is not yet feasible, ” the businessman states.
A Single Organism
Shukhrat Ibragimov acknowledges that in a group as big as ERG, it is impossible for all divisions to be profitable simultaneously. «We have a wide product range. It is never the case that all enterprises demonstrate growth at once. For 18–20 years now, we have seen some divisions grow while others experience temporary downturns, ” he notes.
Commodity price fluctuations add unpredictability. «At the end of last year, the prices for our key products fell by more than 25% in just two or three weeks. We were forced to revise our development plans and new projects because this immediately affects cash flow, ” he points out. In this environment, adaptability is crucial for survival. «We view ourselves as a single integrated system. If one enterprise experiences a temporary downturn, others step in to cover cash flow gaps. This is standard practice for a diversified group, ” ERG’s CEO explains.
Despite volatility, the company does not scale back its projects. «We depend on our resource base. Accordingly, we are now investing heavily in geology and exploration in order to find new deposits. Mining is one part, while processing is the other part, ” he clarifies.
Moreover, ERG invests not only in Kazakhstan but also beyond, including in Africa. In the Democratic Republic of the Congo, the Group is pursuing large-scale projects to mine copper and cobalt, metals that are critical for the green energy transition and battery production technologies. These efforts are centered at Metalkol RTR, an enterprise built with financial support from Chinese partners. «Today, the operation has a capacity of approximately 23,000 tons of cobalt hydroxide; this is no longer just feedstock, but a product used at the next stage of the battery manufacturing process. Furthermore, we produce 105,000 tons of copper cathode per year, ” Ibragimov states.
He is confident that the recent visit of the Congolese President to Kazakhstan has sent an important signal to the business. «Let’s not forget that this is, first and foremost, a country with a population of over 113 million people, ” my interviewee emphasizes. Thus, for ERG, Africa is a strategic region where the company sees long-term growth opportunities, he summarizes.
Dividends Unblocked
The key event for the Group in 2025 was the unblocking and payment of dividends for 2020 and 2021, totaling $365 million to the Government of Kazakhstan, ERG’s largest shareholder. These funds had previously been frozen in Luxembourg. Ibragimov Jr. took a leadership in resolving the legal obstacles that had prevented the transfer of these funds for several years. His direct involvement in negotiations was crucial in ensuring the company met its obligations to the government. «This became a priority for me, ” he notes, without going into too much detail.
Meanwhile, under ERG’s new Strategy adopted in 2024, dividends payable to shareholders are now being redirected toward business development and modernization. «All available liquidity has been reinvested, ” the Group CEO says.
Rumors of a Sale Emerge From Different Angles
In recent months, numerous rumors have circulated around ERG — from the possible sale of its African assets to the involvement of foreign investors in the group’s shareholder structure. Some media even suggested «interest from American parties, ” allegedly backed by Russian entities. Mr Ibragimov responds to any of these calmly: «There have always been rumors, and there always will be. Some use them as a tool to exert pressure or manipulate. But I’ve said this before, and I’ll say it again: ERG and its assets, whether in Kazakhstan or Africa, are not for sale. We are not engaged in any negotiations regarding this. All talk about possible sale is merespeculation — such rumours emerge from different angles, and I don’t really care who is behind it. But I know one thing — I have the desire and the means to make sure that the company keeps growing, launches new production operations, and invests in the future».
So, does the Ibragimov family intend to buy out the shares of other ERG shareholders, namely Patokh Chodiev and the heirs of Alexander Machkevitch? The market has been curious about this since spring. Shukhrat’s answer is brief: «Time will tell.» Thus, he neither confirms nor denies such a deal. However, this response can be seen not as dodging the question, but as a sign that the process is active, though itwill take time.
The topic which also raises public concern is the fate of the Eurasian Financial Company (EFCO) and its assets, including the Eurasian Bank. «I can state with full responsibility that we have no intention of selling — neither the bank, nor the insurance company, nor the financial group as a whole, ” Ibragimov declares, thereby drawing a clear line under the matter.
Why then did the management of the Eurasian Bank suddenly change its mind about opening a subsidiary in Uzbekistan? «We decided to focus on the markets where we already have a foothold and strengthen our positions there with new products and infrastructure. It would be unreasonable at this time to spread ourselves across multiple jurisdictions, as each requires investments and teams. Meanwhile, here in Kazakhstan, we have a strong competitive advantage, ” Ibragimov explains. By the way, he sees the bank’s future in technology. «Digitalization and AI are our priorities for the next three to four years. This is an area we aim to develop more rapidly and in greater depth, ” he notes.
In September, Forbes Kazakhstan reported, citing its own sources, that Ibragimov had won a lawsuit against other EFCO shareholders, requiring the company to implement the Board of Directors’ resolutions dated June 2 and July 30, 2025. During the interview, MrIbragimov confirmed this information, although he expressed surprise at how the magazine had obtained it, given that the court ruling wasnot public. The matter involwed a corporate conflict with one of EFCO’s founders, Patokh Chodiev, and his daughter Mounissa, primarily concerning the management of the Eurasian Bank.
«My lawsuits concerned management only. Disputes happen in any corporate environment. Everyone has a different vision. But the company and the bank continue to operate and develop. This does not affect operations in any way, ” the businessman assures.
Over the past year, several of ERG’s companies have been delisted, also prompting questions from analysts. «This is purely a technical matter related to listing requirements and the scope of reporting obligations, which created an excessive administrative burden. Given the current global market environment, including metal price volatility and limited liquidity, plans for a public equity offering have, for the time being, lost their relevance. Therefore, the company decided to delist certain subsidiaries, ” the businessman explains.
Responsibility Spanning a Generation
During the interview, Ibragimov emphasised that managing the business for him has long extended beyond the corporate sphere, resting largely on his own commitment. «Our company directly employs around 67,000 people, ” he says. «If you include all divisions, the financial sector, auxiliary entities, and contractors, that’s over 80,000 people. When you realize that every decision you make affects the lives, destinies, and well-being of these people and their families, your sense of responsibility grows exponentially.»
At the same time, ERG’s CEO claims that he also has his personal motivation. Shukhrat Ibragimov admits that his father’s recognition has always mattered more to him than any achievements or rewards. «This remains my internal compass to this day. I strive not to let my father down. He dedicated himself to developing the company, and I want to carry that vision forward. Those who see what we are doing understand that we are following in his footsteps, ” he explains.
Ibragimov also believes Kazakhstan has enormous potential, reflected in its talented and creative people. The country is rich in natural resources and benefits from cheap electricity, a strategic location, solid logistics, and strong diplomatic ties. «Today, we stand at the threshold of a new era, one that could allow the country to leap forward over the next 50 to 100 years and strengthen its position both politically and economically, ” he says. «I’m not sure whether this should be called a duty or an aspiration — I simply want to contribute to Kazakhstan’s development and success. This is our home, and it’s up to us to build it.»
