ERG to build HBI plant in Kazakhstan worth more than $1.2 billion

Global metallurgical and mining company Eurasian Resources Group (ERG) has signed a strategic contract with Primetals Technologies and Midrex Technologies to build a hot briquetted iron (HBI) plant in Kazakhstan. This is stated in a press release from ERG.

The agreement covers detailed design, supply of key process equipment, and a range of services for the plant, which will be located in Rudny (Kostanay region). The plant is scheduled to be commissioned in 2029.

The target production capacity of the enterprise is 2 million tons of HBI per year, with a total investment exceeding $1.2 billion. The ERG project is expected to create more than 1,000 new jobs.

“The Midrex Flex plant will be one of the largest next-generation metallurgical enterprises in Central Asia and the first HBI plant in Kazakhstan,” ERG said.

The plant will produce hot briquetted iron with a metallization rate of at least 93.5% and an iron content of approximately 90%. The Midrex Flex system will allow the transition from natural gas to hydrogen when the latter becomes commercially viable. The plant will process oxidized iron ore pellets produced by SSGPO, a subsidiary of ERG, with the possibility of delivering hot products directly to the future steelmaking shop.

The new production facility in Kazakhstan will be deployed to meet the needs of the global market.

As a reminder, Azerbaijan and Kazakhstan will jointly build a $700 million HBI plant. A facility with a capacity of 2 million tons of HBI per year will be built in the Shamkir district of Azerbaijan, with launch expected in 2029.