Eurasian Resources Group optimistic for the future of global energy and resources
“Mining has shown the power to be resilient,” says Group chairman Dr. Alexander Machkevitch
Eurasian Resources Group (ERG), a leading diversified natural resources producer, presented its outlook for the global mining and energy sectors at the Astana Economic Forum (AEF), one of the region’s preeminent discussion forums with an international outreach. ERG’s Chairman of the Board Dr. Alexander Machkevitch emphasised his optimistic views for the mining industry and noted that the majors have always emerged from the times of crises stronger than before.
The IMF’s latest global economic outlook forecasts sluggish growth in major economies. China’s economy has slowed as it transitions to a new growth model. However, higher stability in financial markets, reduced capital outflows and a more stable exchange rate have helped in alleviating some of the market concerns from early 2016.
‘The world is developing. Construction is underway, driving demand for steel, copper and other industrial metals, which is why we believe the world will need more and more commodities. Therefore, we are optimistic,’ said Dr. Machkevitch.
‘I have been working in the industry for 25 years, and I have witnessed three major crises; and yet the crises were always followed by a gradual recovery. It has long been established, and this is invariably the case, that businesses with lower costs survive, while those with costly projects fail,' he said. ‘We have seen these cycles many times before and I am confident of the industry’s ability to bounce back.’ said Dr. Machkevitch.
With a highly diversified project portfolio, a careful resource allocation and the recent debt refinancing in place, ERG is well prepared for a period of any possible prolonged volatility in the commodity markets. Moreover, strong relationships with existing partners and the stake of the Kazakhstan government in the Group will ensure continued support for the Group’s strategic goals against the backdrop of the macro-economic uncertainties in the industry.
The Group will continue to make concerted efforts to consolidate its achievements in Kazakhstan, Africa and Brazil and secure a leading position in the global metals and mining industry, while the management will remain committed to ensuring immediate responses to changing circumstances with a focus on current and future requirements and expectations of the Group’s stakeholders.