Kazakh State Tightens Grip Over Critical Minerals Miner ERG
Developments at the giant miner suggest Astana will be the main factor in company strategy going forward.
Kazakhstan's President Kassym-Jomart Tokayev, set to face reelection in upcoming elections, is consolidating political power ahead of the event. Concurrently, the business elite within the nation is undergoing a transformation, consolidating under the nation's leader. Notable is the rise of Eurasian Resources Group (ERG), a mining conglomerate with global significance in critical minerals production, contributing up to 4 percent of Kazakhstan's GDP.
Integra Construction KZ, owned by 36-year-old chairman Kudrat Shamiyev, is also gaining prominence. Shamiyev, a delegate at an international Taekwondo event, expressed support for a strategy akin to China's, discussing resource exchange with Integra's chairman. The company's CEO, as of June, also oversees ERG, a giant producer of iron ore, bauxite, alumina, ferrochrome, and cobalt.
The company's ownership structure has increasingly leaned towards government control, with the Kazakh state's stake rising from under 12 percent to 40 percent after delisting from the London Stock Exchange. This shift mirrors China's state capitalism model, further solidifying the integration between Kazakhstan's elite and the government.
Written by urgent.news from The Diplomat's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
