ERG plans to produce critical mineral gallium in Kazakhstan next year

Eurasian Resources Group plans to invest $20 million in facilities to produce critical mineral gallium in Kazakhstan from next year, from the bauxite ore it processes to produce alumina, the company said in a release on Monday.

Gallium is on the US and European Union’s lists of critical minerals. It is needed for the manufacture of semiconductors for electronics and radar systems and missile guidance electronics in aerospace and defence.

ERG’s plans would make Kazakhstan, which until now has produced no gallium, the world’s second largest producer after China.

“ERG plans to become a significant player in the global market for gallium, starting production in 2026 to supply OECD countries, with a view to expanding annual volumes up to 15 metric tons per annum,” ERG CEO Shukhrat Ibragimov said.

Global gallium production totalled 760 tons last year according the US Geological Survey. Most was from China and very small amounts from Japan, Korea and Russia.

China banned the export of gallium, germanium and antimony to the United States last December in response to a crackdown on China’s chip sector by Washington.

Although the outright ban only applies to the United States, in the 18-months prior to the suspension, China had steadily introduced export licensing regimes for the three metals.

Alumina is used to smelt aluminum.

(By Pratima Desai; Editing by Barbara Lewis)