Eurasian Resources Group seeks more cooperation at CIIE

At the ongoing China International Import Expo in Shanghai, Eurasian Resources Group, a regular visitor to the annual event, is looking to secure more opportunities and expand trade cooperation.

The group, which the Kazakhstan government has a 40 percent stake in, is a leading multinational company specializing in natural resources, with a diversified business portfolio integrating mining, processing, energy, logistics and marketing operations. It has participated in every session of the CIIE since the event debuted in 2018.

"The event is a fantastic platform for high-level dialogue, building partnerships and supporting trade liberalization and economic globalization," said Benedikt Sobotka, CEO of ERG. "By participating in the CIIE, we hope to strengthen our cooperation and trade with China and to explore new opportunities in the Chinese market."

The company signed a letter of intent with Jiuquan Iron and Steel Group from Gansu province at the third CIIE in 2020 to provide the latter with 1.2 million metric tons of iron ore worth $128.4 million this year.

"We expect the number of customers who sign contracts with us this year to increase further," Sobotka said.

Behind the expectation are the company's strong industrial expertise and well-established worldwide reputation.

One of the world's principal suppliers of metals and other materials, including high-carbon ferrochrome, copper, cobalt, alumina and iron ore, ERG has been in the mining industry for more than 20 years and picked up a great deal of expertise along the way. Its business has expanded to 15 countries across four continents.

Bond with China

The company's ties with China can be traced back to 2002 when it entered the Chinese market to sell high-carbon ferrochrome, as well as other products.

Today, the country has become one of ERG's key markets, contributing to 20-25 percent of the group's annual sales, according to the company.

ERG has always attached great importance to China and its longstanding relationship with the country, Sobotka said.

The company is looking to expand its business in China and help the country realize its economic goals, such as advancing new infrastructure construction, smart transportation, digital development and green energy, which have high a demand for ferrochrome, copper and cobalt, he added.

"In particular, we are keen to serve the booming electric vehicle market in China, which is the biggest in the world," the CEO said.

Citing data from market analysis, Sobotka said global EV sales increased by 160 percent year-on-year in the first half of 2021 and 71 percent of new energy vehicles will be powered by cobalt-bearing batteries by 2030.

"ERG wants to increase the supply of metals like cobalt and aluminum to China in order to meet the demand from the ever-growing EV market," Sobotka said.

Sustainable path

He said mining companies like ERG should be ramping up supply to meet the rising demand for clean energy and global decarbonization goals.

China has pledged to hit peak emissions by 2030 and realize carbon neutrality by 2060. "ERG is increasing its supplies to support China's energy transition goals and serve the growing demand for materials associated with that,"Sobotka said.

For instance, copper can be used in solar panels and wind energy technologies, which are five times more copper-intensive than traditional power generation systems; EVs require around four times the amount of copper used in a conventional engine. And aluminum supports urbanization, wind generation and solar power projects, he explained.

"Currently, only around a quarter of global energy is generated via renewable sources, meaning that we are still at the very beginning of the transition," Sobotka said.

ERG is working to "make the raw materials more affordable and more easily accessible", he said adding that the company has invested in new technologies and related projects such as its Smart Mine initiative and artificial intelligence to improve the efficiency, safety and productivity of its operations.

"As part of our group-wide digital strategy, we are constantly looking to improve how we use digital technology to move ERG further toward Industry 4.0."

As a founding member of the Global Battery Alliance, a public-private partnership that aims to ensure an ethical and sustainable battery value chain, ERG is committed to sustainable business development and the responsible sourcing of its products, according to the company.

Lithium-ion batteries are helping to power a new round of industrial revolution and a low-carbon economy, thanks to their application to electric vehicles, renewable energy facilities and smartphones, Sobotka said.

"The GBA is working on a Battery Passport－a digital representation of a battery that conveys all applicable life cycle information about the battery to measure its environmental footprint and guarantee it is responsibly sourced," he said.

In addition, ERG is piloting Re-Source－a blockchain solution to trace responsibly produced cobalt from mines to electric vehicles－in collaboration with China Molybdenum, Glencore, Tesla and Umicore.

Cherished relations

Originating in Kazakhstan, ERG "cherishes and values" its relationship with China and its people, Sobotka said.

Cooperation between the two countries has lasted for centuries, ever since the ancient Silk Road, and today, through its integrated natural resources and infrastructure projects in Central Asia, Central Africa and Latin America, ERG is actively taking part in the Belt and Road Initiative, he noted.

ERG and NFC China signed a contract in September to set up a special coke plant in Kazakhstan's Karaganda region.

Under the engineering-procurement-construction contract, the plant will be built on a turnkey basis and is scheduled to be put into operation in 2023.

Using state-of-the-art technological solutions and automation, the new plant will enable a significant reduction in imports of reducing agents, and localization of ferrochrome manufacturing, according to ERG.

"China's strong production base and operational environment, sound manufacturing industry chain and huge consumption potential have all naturally attracted considerable investor attention," Sobotka said.

"China will no doubt achieve its goal of building an even stronger and modern country by continuing to promote trade and investment liberalization, accelerating the development of trade innovation, and advancing the BRI, which is a game changer in terms of global cooperation and economic recovery.

"As a major supplier of key materials, ERG is well positioned to support the country's construction of new infrastructure and help to achieve its economic goals while bringing down carbon emissions."