U.S. Investor Offers $5 Billion for Eurasian Resources Group Amid Kazakhstan’s Rare Earth Push
American businessman James Cameron has made a $5 billion offer to acquire Eurasian Resources Group (ERG), according to a letter sent to the company’s board.
The bid comes as ERG prepares to play a central role in Kazakhstan’s ambitious expansion of its rare earth metals sector.
ERG, a Luxembourg-based mining conglomerate, produces copper, cobalt, aluminum, and iron ore, and is 40% owned by the Kazakh government.
In 2023, the company announced the formation of a task force to evaluate rare earth and rare metal deposits in Kazakhstan.
Interest in these minerals has surged amid growing geopolitical tensions. The U.S. government is actively seeking alternatives to Chinese rare earth supply chains, a priority heightened by recent trade disputes.
Discussions between Cameron and ERG have been underway since late 2024, according to a source familiar with the matter. Though he shares a name with the famed filmmaker, Cameron is a different individual—a former board chairman of UK-listed mining company Petropavlovsk.
Neither ERG, the Kazakh government, nor Cameron have publicly commented on the proposed acquisition.
A letter obtained by Reuters reveals that Goldman Sachs is in early-stage discussions to act as a financial advisor for the potential transaction.
“The financing will come from a combination of my own funds, along with equity contributions from investors in the United States, and potentially Australia and the Middle East,” Cameron wrote.
A separate source close to the deal said the investor is particularly drawn to Kazakhstan’s strategic potential in the global market for critical minerals.
Kazakhstan aims to boost rare earth and rare metal production by 40% by 2028, with ERG expected to be a key player in achieving that target.
Earlier this month, the Kazakh government announced the discovery of a major rare earth deposit with estimated resources exceeding 20 million metric tons.
Prime Minister Olzhas Bektenov noted last year that geological data on rare earth deposits—once classified during the Soviet era—is now being gradually declassified.
If confirmed, the new discovery could position Kazakhstan among the top three holders of rare earth reserves, alongside China and Brazil.
ERG once accounted for 20% of the world’s gallium supply, a critical material used in semiconductor manufacturing and listed as essential by the U.S. government.
However, the company ceased production in 2012 after China ramped up its output. In retaliation to U.S. restrictions on China’s chip sector, Beijing banned gallium exports to the U.S. in December 2024.
ERG was taken private in 2013 through a $4.5 billion buyout by its three co-founders and the Kazakh government. Last month, one of its co-founders and long-time board chairman, Alexander Mashkevich, passed away.
Of the original founding trio, only Patokh Chodiev remains among the current shareholders.
