Kazakhstan set to climb gallium production ranking after ERG, Mitsubishi deal
Kazakhstan is set to become the number two producer of critical mineral gallium globally, according to a deal announcement from Eurasian Resources Group (ERG).
ERG said it inked a long-term deal to supply gallium to Mitsubishi Corporation RtM Japan (8058:TYO) during a state visit paid to Japan by Kazakh President Kassym-Jomart Tokayev just prior to Christmas.
Gallium, a soft, silvery metal, is used in the manufacturing of semiconductors and other technologies in electronics. As an Atlantic Council think tank article reported in October, in defence production, the obscure metal is crucial, for instance, in making advanced electronic warfare systems. The US produces no domestic gallium and lacks a government stockpile to cushion against Chinese weaponisation of the commodity through export licensing, it added.
Under the deal, ERG will invest more than $20mn in the construction of a production site with the capacity to produce 15 tonnes of gallium per year.
Production is expected to start in the third quarter of 2026, ERG said.
Shukhrat Ibragimov, CEO at ERG, said that during an address made by Tokayev during his time in Japan, “the Head of State emphasised the vital importance of rare-earth metals and critical minerals, and the need for close integration into global production and supply chains.
“Gallium is crucially important as it is an integral part of modern technologies, especially electronics. Thus, our project is fully aligned with the goals set by the President. As we launch gallium production and start to supply it to Mitsubishi Corporation RtM Japan Ltd. in the future, this will demonstrate that, by developing domestic operations, we can transform strategic resources into competitive products and strengthen Kazakhstan’s position on the market for high-technology materials.”
The gallium will be produced from process solutions of Pavlodar Aluminium Plant, part of Aluminium of Kazakhstan JSC.
The production will use technology developed in-house by ERG Research and Development.
The technology is said to help improve the quality of the core product, alumina, reduce material losses and recover gallium from extremely low-grade ores to produce a high-purity metal.
ERG, with mining operations in countries including Kazakhstan, Brazil, the Democratic Republic of the Congo and Zambia is headquartered in Luxembourg and 40%-owned by the Kazakh state.
On December 23, the Financial Times reported that a little-known Kazakh businessman, Shakhmurat Mutalip, had staged a bid to acquire 40% of ERG, setting up a confrontation with CEO Ibragimov, the son of one of ERG’s now-deceased oligarch founders, who made a similar offer earlier in the year.
Mutalip owns Kazakh building group Integra Construction KZ.
ERG was founded as Eurasian Natural Resources Corporation (ENRC) in the 1990s with formerly state-owned mining assets privatised by the Kazakh government following the collapse of the Soviet Union.
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