Tag Archives: ERG

ERG debuts world-first smart exploration rover at Future Minerals Forum

Eurasian Resources Group (ERG) is looking to change the early-stage mineral exploration process with a ground-breaking smart exploration rover, NOMAD, launched at the Future Minerals Forum in Riyadh, Saudi Arabia, today.

A remotely-operated soil sampling robot, NOMAD has been specifically designed to thrive in challenging terrains, such as those found in the Kingdom of Saudi Arabia, as well as contribute to a smarter, greener and more sustainable economy.

NOMAD, based on Mars rover technology and developed by ERG Technology Intelligence, a division of ERG, incorporates three core elements that, according to the company, makes it fit-for-purpose in exploration contexts:

  • A remote, all-wheel drive semi-autonomous navigation system, key to navigating the Kingdom’s challenging terrain;
  • The inclusion of a multi-sensor platform that allows for efficient and immediate scanning of samples, integral to efficient, safe and methodical sampling; and
  • A built-in, percussion soil drill, that drills 800 mm into the earth’s surface, to fast-track sampling and transfer to scanning trays.

These features boost efficiency by taking more than 120 samples per day, which, the company says, is a major improvement on the maximum of 30 samples that can be achieved manually.

“With rising temperatures and increasingly arduous geological work conditions, NOMAD can perform formerly manual work more safely and proficiently, while allowing exploration of larger surface areas at pace,” the company explained.

Chile-based robotics company, Godelius, has partnered on the NOMAD development, while the unit incorporates Geotek’s BoxScan multi-sensor platform, which includes a BoxScan X-ray Fluorescence (XRF) sensor for chemistry analysis, a hyperspectral sensor for mineralogy assessment, a magnetic susceptibility laser profiler for magnetic property analysis, and a high-resolution line scan imagery solution for detailed visual data.

“This solution was chosen strategically based on their comprehensive range of exploration capabilities as a multi-element geochemistry solution,” Aaron Baensch, Head of ERG Technology Intelligence, told IM. “NOMAD’s uniqueness lies in its integration of these sensors in a single, mobile, fit-for-purpose drilling and scanning unit, making it the first of its kind to combine these advanced technologies.”

NOMAD can take more than 120 samples per day, which, ERG says, is a major improvement on the maximum of 30 samples that can be achieved manually

Once samples are collected by NOMAD, it returns to a central, remote, mobile analysis base station which houses the robots and also re-charges the batteries that power them. The base station, part of ERG Arabia’s complete end-to-end smart exploration solution, conducts analysis of the collected sample on site, working to fast-track operations, by helping the geology teams on the ground to make decisions in real time.

“This level of agility is integral to developing a more responsive and sustainable mining sector,” ERG says.

Baensch added: “With NOMAD, we aim to analyse a wide range of characteristics beyond just ore grade, including: elemental composition, mineralogy, magnetic properties and visual data. The units are equipped with low-level sensitivity sensors to detect even trace amounts of elements and minerals.”

The unveiling of the first NOMAD follows successful field testing in Ad Dawadmi, a location where ERG has exploration assets, in December. This focused predominantly on the navigation, autonomy and drilling aspects of NOMAD, according to Baensch.

“The terrain in the areas tested comprised shallow cover over residual regolith and proved the suitability of implementing NOMAD in the region perfectly,” he said. “The robot excelled in boosting operational efficiency by an astounding 400% compared to conventional manual exploration methods.”

In addition to deploying the unit for ERG Arabia’s use, the company is also seeking partnerships with industry, government and research institutions as a means to contribute to sector-wide exploration progress.

ERG breaks ground on COMIDE copper-cobalt hydromet plant in DRC

Eurasian Resources Group (ERG) in Africa has broken ground on a hydrometallurgical plant at its COMIDE asset to produce copper and cobalt in the Democratic Republic of the Congo (DRC)

The plant is designed for phased operational output, with expansion potential to produce approximately 120,000 t/y of copper cathode and 15,000 t/y of cobalt hydroxide.

COMIDE comprises some of the largest known copper and cobalt resources still to be developed globally, according to ERG. Following a technical study, the development potential of its resource base and production capacity were established, paving the way for the project at hand. The COMIDE project includes the construction of a hydrometallurgical plant, an extensive exploration and drilling program, as well as mine development – backed by a total investment of around $800 million.

The start of works was marked by a groundbreaking ceremony held at COMIDE in Lualaba Province on October 12, 2023.

The hydrometallurgical plant, which is expected to be complete by the end of 2025, will be constructed in three phases. During the first and second phases, the plant will produce an estimated 40,000 t of copper cathode and 7,000 t of cobalt hydroxide annually. The third phase is projected to yield up to 80,000 t of copper cathode and 14,000 t of cobalt hydroxide per annum, with the potential for further expansion to reach a production capacity of 120,000 t of copper cathode a year.

Speaking on behalf of ERG Africa’s Acting Chief Executive Officer, Sergei Verbitckii, Chief of Staff, Joachim Nzuzi, stated: “The design of this project was developed with innovation and sustainability top of mind. The plant will be equipped with the latest technology to ensure that we maximise recovery, while reducing the impact on the environment.”

The ERG Clean Cobalt & Copper Framework – which guides production of these two critical minerals – will be extended to COMIDE.

Nzuzi added: “Aligned to ERG’s commitment to environmental stewardship, we are not only celebrating the building of a plant and the development of a mine today. We are also committing to a greener tomorrow, not only through our approach to responsible mining and producing the critical mineral required for the green energy transition, but also by restoring the ecosystems on our site and in the surrounding areas. Thus, before we have even started construction work, we teamed up with the University of Lubumbashi to establish a nursery that will provide the trees we will plant to ensure that after our mining activities eventually cease, the site will house many more trees than before we started the project. We already have 700 trees in our nursery and are currently seeding 2,000 more.”

During the development and construction phase of the project, COMIDE will provide approximately 2,000 direct and indirect jobs for DRC nationals, predominantly hired from its surrounding communities, ensuring that its community members will be the primary beneficiaries of COMIDE’s activities, while contributing to the broader economic upliftment of the country.

Once COMIDE becomes operational, with an estimated initial 20-year life of mine, its surrounding communities will stand to benefit through direct and indirect employment and supplier opportunities, the communities’ contribution fund and royalties towards social development initiatives, in addition to the projects outlined in its community development plan agreement [Cahier des Charges] and other social contribution initiatives contemplated to be developed in the context of the operation, ERG says.

SNC-Lavalin to help BAMIN join up mining and rail ops at Pedra de Ferro

SNC-Lavalin has been awarded a C$14.8 million ($11.4 million), two-year contract to provide design and engineering services for the Pedra de Ferro project in northeast Brazil for BAMIN, a wholly-owned subsidiary of ERG.

The Pedra de Ferro project involves an iron ore mining operation in the state of Bahia that extracts and processes two types of ore, hematite and itabirite, and transports it for commercialisation via rail and sea. To help increase capacity and expand production, the company will design and engineer an open-pit mine, a hematite processing plant, an itabirite processing plant, a product storage yard, a cargo loading station and a railway loop that will provide access to the West-East Integration Railroad (FIOL). In September 2021, BAMIN signed a concession agreement with the Brazilian Federal Government to complete and operate a section of the FIOL railway in the country. Once completed, FIOL will be able to carry 60 Mt/y of freight, with BAMIN’s products accounting for a third of this capacity.

“Our integrated pit-to-port approach is present at every level in the mining industry, including greenfield, brownfield, new investments, due diligence and assessment studies,” Cesar Inostroza, SNC-Lavalin Mining & Metallurgy CEO, said. “Whether it’s complementing existing operations or getting new ones up and running, we deliver safely on time and on budget.”

Maria de Lourdes Bahia, SNC-Lavalin Mining & Metallurgy Vice-president, Brazil, said: “This project is extremely important to the Brazilian economy, helping generate thousands of jobs and positioning Bahia to become the third largest iron ore producing state in Brazil. Our commitment to innovation, technology and sustainability enables us to deliver the best solutions with lasting benefits to our clients and the communities in which we work and live.”

ERG has previously flagged that Pedra de Ferro could produce up to 18 Mt/y of iron ore at full capacity.

ERG looks at green hydrogen, wind, solar power as part of decarbonisation efforts

Eurasian Resources Group is exploring the potential use of green hydrogen in its calcination kilns, as well as installing a portfolio of wind and solar power plants with an up to 6 GW capacity as part of its decarbonisation plans, according to Dr Alexander Machkevitch, Chairman of the Board of Directors.

During the plenary session of the Council for Foreign Affairs under the President of the Republic of Kazakhstan, titled, ‘Decarbonisation of the economy: Implementation of low-carbon technologies to identify environmental, social and governance settings (ESG),’ Dr Machkevitch, shared ERG’s ambitious plans to decarbonise its operations, including those with a focus on green hydrogen and renewable energy generation.

These efforts form an important part of the group’s ESG strategy and support Kazakhstan’s own national decarbonisation targets, it says.

Dr Machkevitch said: “Our environmental strategy includes around 40 projects across the group, embracing the development and application of new technological solutions such as the unique hybrid filter technology implemented at our plants together with thyssenkrupp. At ERG, we are exploring to replace fossil fuel oil in calcination kilns with green hydrogen, which can eliminate 100% of direct greenhouse gas emissions in this technological process. The group also plans to develop a portfolio of wind and solar electric power plants with total capacity of up to 6 GW.”

The group’s ESG 2030 goals include specific targets for reducing particulate emissions, waste and water use, with the three priorities being the reduction of particulate emissions by two-fold, the reduction of water consumption by a third, and the prevention of more than 2 Mt/y of CO2 emissions through the use of renewable energy sources. These activities will cost around $1.6 billion.

ERG’s decarbonisation commitments will significantly support national climate targets, it says. Kazakhstan plans to reduce national GHG emissions by 1.5% a year between 2022 and 2025, achieve a 15% reduction by 2030 and seek carbon neutrality in 2060.

Repair, Reuse, Recycle: ERG’s critical minerals reprocessing journey

The Musonoi River Valley in the Katanga region in the Democratic Republic of the Congo (DRC) has, for some decades, been the site of land degradation resulting from inadequate and ineffective tailings and other waste management systems.

The local water system and surrounding land has been subjected to pollution from more than 83.2 Mt of legacy tailings spread over an area 11-km long and up to 2.5-km wide. Additionally, 41.1 Mt of tailings have accumulated at the Kingamyambo Tailings Dam.

Remediating and mitigating this damage is now a primary goal of Eurasian Resources Group’s Metalkol Roan Tailings Reclamation (RTR), a reprocessing facility dedicated to cleaning up the historic tailings left by previous mining operators in the Kolwezi area of the DRC. By reclaiming and reprocessing copper and cobalt tailings in the region, the company says its approach goes beyond ‘do no harm’, actively addressing a history of environmental degradation and pollution.

The legacy tailings are extracted through hydraulic mining and dredging, reprocessed and then re-deposited into a modern, closely managed and centralised tailings storage facility. This is subject to regular inspection, monitoring and reporting, supported by a dedicated Engineer of Record and an independent laboratory. Currently Metalkol RTR can produce 21,000 t/y of cobalt, which is says is sufficient for three million electric vehicle batteries, alongside around 100,000 t/y of copper, the company says.

ERG also has reprocessing operations outside of Africa, including at Kazchrome in Kazakhstan, which, it says, is the world’s largest high-carbon ferrochrome producer by chrome content.

Established in 2019, ERG Recycling – ERG’s specialised company aiming to become the largest entity to reprocess industrial waste into commercial products in Kazakhstan – has already implemented many projects including the commissioning of a new workshop that reprocesses slag, dust and other fine waste into high-quality briquettes. This program to reprocess Kazchrome’s 14.7 Mt of slag stockpiles has been expanded, now processing over 100,000 t/y of slag.

These operations have been enhanced by the development of new technology. Having completed the first trial in 2020, the Slimes 2 Tailings Reprocessing project at Donskoy GOK has the potential to enhance Kazchrome’s output of chrome concentrate by recovering 55% of the chromium oxide in chrome-oxide bearing tailings using innovative flotation technology, the company says.

In Brazil, at ERG’s integrated project, BAMIN, which produces a premium 67% Fe grade iron ore and is ramping up to become one of the country’s largest standalone iron ore exporters, the company’s transition from an upstream to a downstream tailings model ensured continued compliance with both local regulations and international standards, it said. The group continues to study additional technological enhancements to ensure the construction and operation of a world-class facility.

The environmental benefits of reprocessing projects like these are very significant for the business and critical to local communities, according to the company.

“As more attention rightly turns towards environmental, social and governance (ESG) issues, it is crucial that tailings are dealt with and stored properly,” ERG said. “Aside from preventing significant issues, such as dam collapses, by reprocessing and responsibly storing these tailings, we are reducing local pollution risks more generally, increasing air quality and decreasing the likelihood of leaching toxic substances into surrounding habitats and water systems.”

Given the legacy of environmental degradation and serious consequences it poses, it is also necessary for mining companies to explore novel ways of rehabilitating the environment.

For example, ERG has been working with a team of agronomists from the University of Lubumbashi in the DRC to look into the experimental planting of trees and their growing potential at the Kingamyambo tailings dam.

Looking forward, these operations will support the sustainable development of affordable batteries and other clean energy technologies.

By producing critical raw materials, such as cobalt, without the risk and cost of needing to develop new mining projects, ERG says it can help make electric vehicles and other renewable technologies more accessible, helping facilitating the net-zero transition.

Pictured above is Metalkol RTR, ERG’s reprocessing facility in the DRC: the world’s second largest standalone cobalt producer

NFC China, ERG agree on EPC contract to construct ‘special coke plant’ at JSC Shubarkol Komir

Eurasian Resources Group (ERG) and China Nonferrous Metal Industry’s Foreign Engineering and Construction Co Ltd. (NFC China) have signed an engineering, procurement and construction (EPC) contract to construct a “special coke plant” at JSC Shubarkol Komir in Kazakhstan’s Karaganda Region.

The new 400,000 t/y plant will produce a reducing agent that is key to the production of ferroalloys, ERG says.

Under the ЕРС contract, the plant will be constructed on a turnkey basis and is scheduled to be put into operation in 2023. Investments in the project will total about KZT40 billion ($94 million).

Ruslan Mulyukbayev, CEO of ERG Capital Projects, the company responsible for developing and implementing large-scale investment projects in Kazakhstan, said: “The new plant will enable JSC Shubarkol Komir to manufacture a high value-added product and cut the imports of reducing agents significantly. In addition, it should help increase local content in ferrochrome production and meet ERG’s needs by supplying a domestically manufactured product. The plant will use state-of-the-art technological solutions and automation that are fully compliant with all national standards. We plan to create 120 new jobs.”

Qin Junman, President of NFC, said: “The signing of the EPC contract marks another milestone in the long-term cooperation between NFC and ERG. I am fully confident that, with our good track record of successful implementation of a number world-class projects in Kazakhstan, including ERG’s state-of-the-art Aluminium Smelter project, we will be able to deliver another exemplary project of Sino-Kazakh cooperation within schedule, with good quality and with international HSE standard.”

In addition to 400,000 t of special coke, the new plant will produce more than 70,000 t/y of coal tar and oil from Shubarkol Komir’s coal. ERG is also exploring the possibility of exporting these products.

The new enterprise will use technological solutions to enable safe and environmentally friendly production, as well as to increase electricity, heat and water conservation, ERG says. Its ventilation system will be equipped with air purifiers. All water used in the production process, as well as the contaminated wastewater, will be treated and supplied to the water recycling system.

JSC Shubarkol Komir is already home to a special coke plant with a capacity of over 200,000 t/y that was built and put into operation in 2005. The company has implemented a project to equip the plant with the newest, most efficient system for tar removal from coke oven gas, a process which involves five-stages of treatment.

ERG to acquire Hitachi EH4000 AC-3 trucks, EX5600E excavators for SSGPO operation

Eurasian Resources Group (ERG) has signed a cooperation agreement with Eurasian Machinery LLP, the official provider of Hitachi specialised equipment in Central Asia.

The agreement will see 12 Hitachi EH4000 AC-3 dump trucks and two Hitachi EX5600E hydraulic excavators delivered this year to the Kacharsky open pit iron ore mine, part of ERG’s Sokolov-Sarybai Mining Production Operation (SSGPO), in Kazakhstan.

This stands as one of the most significant acquisitions of specialised mining equipment in Kazakhstan’s history, according to ERG.

The new equipment, boasting 220 t lifting capacity, will be used for overburden operations and the transportation of iron ore, and is part of a large-scale reconstruction of the entire Kacharsky site aimed at a considerable increase in iron ore production volumes at SSGPO, ERG says.

The delivery of the specialised equipment will offer remarkable increases in load capacity and provide further advantages when working on a large scale, according to the company.

In addition to delivering specialised equipment, Eurasian Machinery will perform a wide range of maintenance works, including the construction of service infrastructure and the supply of necessary spare parts over the next 10 years. They will also offer specialised simulator training to ERG’s drivers.

As part of the agreement, which will be carried out according to the maintenance and repair contract principles, ERG will purchase up to 50 units of specialised mining equipment.

ERG’s BAMIN signs pact with Brazil Government to complete and operate FIOL railway

Eurasian Resources Group (ERG) says its wholly-owned Brazilian subsidiary, BAMIN, has signed a concession agreement with the Brazilian Federal Government to complete and operate a section of the FIOL (East-West Integration) railway in the country.

BAMIN will advance the construction works, which until recently were carried out by the state-owned railway engineering and construction company Valec.

The sub-concession has been granted for a 35-year period, which includes an allowance of five years for the construction of the railway and 30 years for its operation. BAMIN’s investment into the railroad and the rolling stock will amount to around BRL3.3 billion ($683 million).

In April 2021, BAMIN won the auction on the B3 (São Paulo Stock Exchange) to complete and operate the first 537 km stretch of the FIOL. The concession agreement has now granted BAMIN 120 days to evaluate the progress of the construction and other related works. This preliminary phase precedes the preparation of a plan to resume the construction, which is scheduled for the second half of 2022.

Tarcio Gomes de Freitas, Minister of Infrastructure of Brazil, said: “The importance of this infrastructure project in the state of Bahia cannot be overstated. The project is very well structured and includes an iron ore plant, a railway and a seaport. The railway, which is undergoing construction, will serve the mining industry, as well as the agricultural sector, which is growing at an unprecedented pace, particularly in the west.”

BAMIN has already hired professionals in the rail industry to oversee the management of the FIOL railway. BAMIN will also leverage ERG’s international expertise as the largest transport operator in Central Asia with extensive experience in rail transportation, ERG says. Each year, ERG transports over 50 Mt of freight using 10,000 vehicles, while also maintaining and repairing 2,500 wagons and over 1,000 locomotives.

Benedikt Sobotka, CEO of Eurasian Resources Group, said: “All across the globe, railways play a crucial role in urban development, enabling people to gain access to new opportunities. In Brazil, we are confident that FIOL will act as an important connecting point between regions, cities and people, contributing to economic growth, and creating a strong link between the west and the east of the country. The logistics and exportation corridor that BAMIN will create will transport millions of tonnes of iron ore, agricultural products, as well as other goods.”

With the resumption of construction, the project is expected to boost the country’s economic growth at both the federal and the local level: FIOL will strengthen the rail network across 20 municipalities in Brazil, while also boosting foreign trade, ERG says.

BAMIN plans to install over 30 loading stations along the route, creating opportunities for regional producers, enhancing production chains, and helping establish new businesses.

Once completed, FIOL will be able to carry 60 Mt/y of freight, with BAMIN’s products accounting for a third of this capacity. More than 40 Mt of cargo will be made available for other businesses in both the mining and agricultural sector, as well as other industries in the Bahia region.

ERG said: “The importance of the FIOL railway cannot be overstated, as the railway will be part of an integrated logistics project that will connect the Pedra de Ferro mine in Caetité with the Porto Sul, currently under construction in Ilhéus, Bahia. Following the commencement of commercial operations in January 2021, the Pedra de Ferro Mine is expected to produce 1 Mt by the end of this year. Once the South Port and FIOL are completed (expected in 2026), the mine should produce 18 Mt of iron ore per year.”

Eduardo Ledsham, CEO of BAMIN, said: “The Pedra de Ferro mine, Porto Sul, and FIOL projects are an important milestone for the country’s economic development, and a source of pride for the Bahia State and all Brazilians. We are creating a new logistics corridor to integrate the west with the east of Brazil, creating a new, important exportation pathway.

“The state of Bahia will occupy a new and important place in the national economy, becoming the third largest iron ore producer in the country, generating wealth and prosperity, while also increasing the population’s income and improving the quality of life.”

Kazchrome achieves chrome tailings flotation breakthrough

Engineers at the Donskoy Ore Mining and Processing Plant of JSC TNC Kazchrome, in Kazakhstan, have successfully completed trials of a first-of-its-kind industrial flotation technology to increase the enrichment of chrome oxide-bearing tailings, Eurasian Resources Group reports.

Kazchrome, the world’s largest high-carbon ferrochrome producer by chrome content with a total resource base of over 200 Mt of chrome ore, is owned by ERG.

The novel technology is part of the group’s R&D efforts to maximise chromite concentrate output and reduce the site’s environmental footprint, the company reports, with the process yielding the recovery of over 55% of chrome oxide and conforming to the applicable requirements for concentrate used in ferrochrome smelting.

As a result of these trials, the flotation technology will be used to construct a new facility to process over 10 Mt of chrome oxide-bearing tailings with a planned annual capacity of 1.7 Mt for 450,000 t/y of chrome concentrate, ERG says.

Benedikt Sobotka, CEO of Eurasian Resources Group, said: “This pioneering technology is a major milestone on our path towards ensuring sustainable and low-cost chromite concentrate supply for our operations in Kazakhstan, and is part of the group’s broader strategy to reinforce our leading position in the global ferrochrome market.”

Sergey Opanasenko, Chairman of the Management Board of ERG R&D Centre, added: “We are very pleased with the results of the flotation trials, particularly considering the complex mineralogy and physical characteristics of our ores. Building on this success, we look forward to working on incorporating this technology into the design of our new tailings processing facility.”

ERG adds ARC Advisory and SAP to digital transformation program

Eurasian Resources Group (ERG) says it has signed letters of intent (LOI) with ARC Advisory Group and SAP for the continuation of its large-scale digital transformation program, grounded in the principles of Industry 4.0.

Jointly with Oner Mind, ARC Advisory Group is to perform an independent technological audit of ERG’s entities in Kazakhstan, which includes power generation, aluminium and ferroalloy assets, and develop an action plan for business process optimisation, ERG said.

Commenting on the signing, Galymzhan Akhmetov, ERG’s Chief Information Officer, said: “ERG’s entities differ by industry and size; that’s why we need a world-class independent audit to maximise the effectiveness of production process management.”

Uwe Grundmann, General Manager of ARC Advisory Group’s European operations, said ERG’s digital transformation would benefit from the business’s knowledge base and experience.

In further support of the group’s ambitious programme, ERG also announced a new area of cooperation with SAP, which will see the implementation of a new system focusing on repair and maintenance management and ensuring equipment reliability.

Serik Shakhazhanov, Chairman of the Management Board at Eurasian Group LLP, which operates ERG’s entities in Kazakhstan, said the partnership would enable the group to enhance its competitive edge and develop the best industry practices of asset management.

The milestone was also welcomed by Eugene Teremov, Managing Director of SAP Kazakhstan, who said the signatories have a shared commitment to innovation.