Eurasian Resources Group enters into a principal agreement with China's NFC to complete the construction of its project in Africa; EXIM and ICBC to support the financing, Sinosure to provide the insurance
Eurasian Resources Group takes part in the meeting with Premier of the Republic of China, unveils joint projects and initiatives in metals & mining and infrastructure
The Eurasian Resources Group (ERG), a leading diversified natural resources producer, attended the 15th annual Boao Forum in China as one of the key international participants. Discussion of a partnership between China and Kazakhstan in the global metals industry aimed, among other things, at dealing with industrial overcapacity, and formed part of an official meeting between Alexander Machkevich, Chairman of the Board of Managers of ERG, and other senior executives representing the business community at the Forum, and the Chinese Premier Li Keqiang. Mr. Machkevich and Mr. Benedikt Sobotka, Chief Executive Officer of ERG, also gave speeches at several panel sessions regarding the development of the natural resources and energy sectors.
ERG has many important partners in China and supplies ferroalloys, copper, cobalt and iron ore to the country; there is also cooperation with China on technology sharing. The meeting with the Chinese Premier marked a major event not only to China but also to the world’s industry. Mr. Machkevich was invited to play a major role at this meeting as a representative of the large business of Kazakhstan and one of the key ambassadors for initiatives to transfer excess production capacities from China to other regions. ERG is now developing large-scale investment projects in partnership with the Chinese Government and its policy banks as part of the One Belt, One Road initiative, which will further strengthen ties across the Eurasian region. These projects are aimed at fuelling industrialisation and infrastructural growth and at improving the livelihood of local communities, and can be considered as successful examples of the One Belt, One Road.
In Kazakhstan, ERG is already working on the implementation of several joint projects with its Chinese partners. The first project involves reconstruction of the two electric power units at Aksu Power Plant. Additional power generation will help meet the needs of one of the largest greenfield projects in Kazakhstan: the construction of the third line of a new aluminium smelter. This project will boost the capacity of ERG, the country's only aluminium producer, by 50%, or by 140kt. Through cooperation with its Chinese partners, ERG will continue to improve its technologies and will source equipment that is more efficient and sustainable.
In his speech at a special session focusing on the transfer of excess capacities from China to other countries and regions, Mr. Machkevich highlighted ERG’s partnership with Chinese businesses. ERG is working with the Chinese contractor NFC, Exim Bank of China, ICBC and Sinosure on the construction of the RTR copper and cobalt hydrometallurgical facility in the Democratic Republic of Congo, which is a high-priority project for the Group.
Alexander Machkevich emphasized: 'China is a very important market to ERG, and we are proud of the strong commercial presence we have built in the country. We are also cooperating closely on technology initiatives and work together with the leading Chinese financial institutions. In the past 10 years, Chinese contractors, working under EPC (Engineering, Procurement and Construction) agreements, have gained a successful reputation worldwide. Transferring excess production capacities from China to other countries is a truly constructive idea; if managed efficiently, this can produce highly positive results for the entire industry and prove mutually beneficial for the countries involved. And today, projects that ERG is already implementing in Kazakhstan and Africa help put this idea into practice.'
‘We firmly believe that such cooperation will be an additional impetus for economic growth,’ added Mr. Machkevitch.