U.S. investor James Cameron has proposed a $5 billion acquisition of Eurasian Resources Group (ERG), a Luxembourg-based mining conglomerate 40% owned by the Kazakh government. ERG, which produces key commodities including copper, cobalt, aluminum, and iron ore, is actively expanding its exploration and production of rare earth and rare metals in Kazakhstan. This move aligns with the U.S. government’s efforts to reduce reliance on Chinese sources for critical minerals amid ongoing trade tensions.
Interest in ERG has grown with Kazakhstan’s announcement of a significant rare earth discovery estimated at over 20 million metric tons, potentially placing the country among the top global reserves. ERG previously accounted for 20% of global gallium production, a critical component in microchips, before halting output due to Chinese market dominance.
Talks involving Cameron and ERG have been ongoing since late 2024, with Goldman Sachs in early discussions to advise on the transaction. The proposed financing includes Cameron’s personal funds and investments from the U.S., Australia, and the Middle East.
ERG intends to increase the share of Kazakhstani content to 80% by 2028, aligning with the government’s strategy to boost domestic production and reduce reliance on imports.
This acquisition proposal underscores the growing geopolitical importance of rare earths and critical minerals, with Kazakhstan emerging as a key player in the global supply chain.
