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ERG Gallium Extraction and Production Facility
Project ID:
2212202501
Project Name:
ERG Gallium Extraction and Production Facility
Project Sector:
Mining & Metallurgy
Photo source:
Project Description
The project involves construction of a new industrial facility for extracting and producing gallium, a critical metal used in semiconductors and high‑technology applications, at the existing Pavlodar Alumina Plant in Kazakhstan. The facility will utilize ERG’s proprietary technology to extract gallium from alumina production residues (red mud), enabling the recovery of high‑purity gallium even from low‑concentration solutions. The project supports Kazakhstan’s strategic goal of moving up the value chain from raw materials to high‑value advanced materials and positions the country as a key global supplier of critical minerals. Annual capacity is planned at up to 15 tonnes, which would make Kazakhstan the second largest gallium producer in the world, behind China. A long‑term supply contract has been signed with Mitsubishi Corporation RtM Japan Ltd, demonstrating integration into global supply chains and expected export routes to Japan and OECD markets. The initiative also aligns with government policy to stimulate domestic strategic metal production by eliminating export duties on gallium. Construction includes civil works, technology installation, and workforce establishment designed to create around 70 jobs. First production is targeted for the third quarter of 2026
Project Phase:
Engineering Design & Planning
Investment Value:
24 000 000 $
Location:
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Start Date:
1/1/2026
End Date:
9/30/2026
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Other important details
Government export policy changes to support the project
The Government of Kazakhstan abolished the 10 % export duty on gallium to stimulate production and exports of this strategic metal. At the same meeting, authorities also banned exports of certain non-ferrous metal blanks and ingots until the end of 2025 to maintain domestic raw material supply and support value-added processing industries. These policy changes strengthen the commercial viability of the ERG gallium project.Strategic classification and market context
Gallium is on the critical minerals lists of the United States and the European Union due to its essential role in semiconductors, radar systems, and other advanced technologies. Kazakhstan’s entry into gallium production via this project aligns with global demand for diversified supply chains outside China, which currently dominates gallium output.Export plans beyond Japan
ERG plans not only to supply gallium to Mitsubishi Corporation RtM Japan Ltd under the signed contract but also to export gallium to European markets starting in 2026, reflecting broader export strategy for OECD partners.Potential for future expansion
Some reports indicate the possibility of expanding production capacity beyond the initial 15 tonnes per year (up to ~20 tonnes annually with future phases), which would further strengthen Kazakhstan’s position as a major gallium supplier globally.Integration with existing alumina infrastructure
The gallium extraction process is integrated into the existing alumina production chain at the Pavlodar Alumina Plant (part of AO “Aluminium Kazakhstan”), leveraging red mud waste streams rather than requiring a fully separate mining operation. This integration reduces capital risk and enhances sustainability by utilizing by-products.Broader strategic agreements with Japanese partners
Within the same diplomatic and business engagement framework as the gallium contract, ERG signed memoranda of understanding with other major Japanese companies (Hitachi and Mitsui) covering potential cooperation on decarbonization, advanced technology implementation, and modernization of equipment. These agreements could indirectly benefit project implementation and technology transfer.
Publication/Revision Date:
12/22/2025