ERG resolves disruptions at Donskoy chrome mine amid Kazakhstan tensions

Diversified miner Eurasian Resources Group (ERG) and its subsidiary chrome producer Kazchrome have resolved temporary disruptions at the Donskoy chrome mine in Kazakhstan against a background of protests that rocked the central Asian nation in recent days, according to an ERG spokesperson.

"Temporary disruptions caused by gatherings at the Donskoy Ore Mining and Processing Plant in the Aktobe region, part of TNC Kazchrome JSC, have now been resolved by ERG and Kazchrome's senior management, with production processes continuing as normal," the ERG spokesperson said in a message over the weekend.

Donskoy is one of the world's largest chrome ore mining operations, with its confirmed reserves the second-largest globally, according to Kazchrome's website. ERG is one of the world's largest high-carbon ferrochrome producers by chrome content.

International metals producers active in Kazakhstan have told S&P Global Platts there has been no specific impact to date on their mine operations as a result of anti-government protests in Kazakhstan's cities, notably Almaty, despite reports of one copper smelter being hit by a protest.

S&P Global Platts' latest European assessment of 65% 6-8% high-carbon ferrochrome prices stood unchanged at Eur183.000-193.000/mt DDP NWE Jan. 5.

All ERG's enterprises in Kazakhstan continue to operate, with the situation under control, the spokesperson said. ERG accounts for around a third of mineral production in Kazakhstan, where it produces iron ore and bauxite as well as chrome ore -- and has operations in Russia, China, Brazil and various African nations. It is 40% owned by the Kazakhstan government and is headquartered in Luxembourg.

"With regard to the current political events in Kazakhstan, ERG confirms that the situation at all of our Kazakh enterprises is stable and in order," ERG said in a statement. "The group has taken all necessary steps to avoid disruption to the normal course of business, deal with localised issues and minimise the impact of external factors on our enterprises."

ERG's "utmost" priority is keeping its people, their families and local communities safe, while ensuring business continuity, the company stated. Press reports Jan. 9 referred to as many as 164 deaths as a result of violent anti-government protests that started around a week ago over high energy prices and swelled into a broader anti-corruption movement against what is viewed as the power of the country's elite, before quieting down after Russian-led army units arrived Jan. 6.

"ERG can inform stakeholders that despite the rapid development of events and the challenges that have arisen, all of our enterprises in Kazakhstan continue to operate and are under control, with any issues resolved promptly," the company's statement said.