Major events

The company was founded by circle of oligarchs in Kazakhstan known as the "Trio" in 1994.^[3] The Trio consisted of Alijan Ibragimov, Alexander Mashkevitch and Patokh Chodiev, all active in the mining, oil and gas, and banking sectors in Kazakhstan. The assets of the company were acquired as part of the privatization process in Kazakhstan.^[4]

The company in its present form was established in 2006 as part of a re-organisation to consolidate a series of businesses into one group.^{[ENRC 4]}

The company floated around 18% of its equity on the London Stock Exchange in December 2007.^[5]

In December 2009 the Company completed acquisition of the Central African Mining Exploration Company (CAMEC).^[6] CAMEC's operations incorporate the assets of copper and cobalt in the Democratic Republic of Congo, the development projects of coal in Mozambique, bauxite in Mali, platinum in Zimbabwe, and fluorspar in South Africa, as well as trucking and logistics business across the African continent.^{[ENRC 5]} CAMEC's Mukondo Mine may be the richest cobalt reserve in the world. Copper from Mukondo is refined at the Luita plant, with planned capacity of 100,000 tonnes per year of copper cathode.^[7] In July 2009 CAMEC announced a long term agreement under which CAMEC would deliver its entire annual production of cobalt in concentrate from Mukondo Mountain to Zhejiang Galico Cobalt & Nickel Materials of China.^[8]

In February 2010 ENRC acquired a 90% interest in Chambishi Metals PLC,^[9] a smelting facility in Zambia, together with a 100% interest in Comit Resources FZE,^[10] a Dubai-based marketing and sales company that historically has handled Chambishi's copper and cobalt sales. In August 2010 company acquired 50.5% of Camrose Resources Limited ('Camrose'). Camrose held five high quality copper and cobalt mining permits in the Democratic Republic of Congo (DRC).^{[ENRC 5]} They include the Kolwezi tailings project, which the DRC government had confiscated from First Quantum Minerals (FQM). FQM had spent C$750 million developing the Kolwezi assets. ENRC paid $175 million for its majority stake in Camrose.^[11]

In September 2010 ENRC acquired the outstanding 50% interest in Bahia Minerals BV and in October 2010 – 100% of Mineração Minas Bahia SA (MIBA) and 51% of Mineração Peixe Bravo SA (MPB).^[12]

In March 2013 ENRC was forced to write down a US$1.5bn (£1bn) loss due largely to an "onerous" locked in contract with the Russian aluminium company, Rusal with whom they must provide aluminium at what is now below market price (Telegraph 2013).^[13]

On 21 April 2013, The Sunday Times revealed that three founders, Alexander Mashkevitch, Patokh Chodiev and Alijan Ibragimov, were behind a possible takeover bid for ENRC. ^[14] Following this news, three senior executives resigned, and a fourth announced a leave of absence. These included the Head of Human Resources and the Company Secretary.^[15] On 23 April Mehmet Dalman, the chairman of ENRC, also resigned and next day the group confirmed that Gerhard Ammann, a non-executive director of ENRC and president of Bank Von Roll, a Swiss private bank, would replace Mr Dalman.^[16]

The Serious Fraud Office launched a criminal investigation into ENRC's business practices in April 2013.^[17]

ENRC annual report released on 30 April said that UK authorities are investigating whether ENRC breached Britain's rules for listed companies, specifically with acquisitions made in the Democratic Republic of Congo and a 2012 sale of railway line repair company Zhol Zhondeushi to a company connected to the family of one of the miner's co-founders.^[18]

In November 2013 ENRC de-listed from the LSE after the group's founders gained acceptances from 96.7 percent of shareholders for their offer - of $2.65 in cash and 0.23 of a Kazakhmys share for each one in ENRC - to acquire the company along with the Kazakh government.^[19]

In February 2014, it was reported that the firm would have to sell its international assets, including its lucrative copper mines in the Democratic Republic of Congo, after the company's founders came under increased pressure to repay the large loan they had taken out to privatise ENRC.^[20]

Ferroalloys

ENRC's largest division is its Ferroalloys Division (ENRC 2013).^{[ENRC 7]} ENRC is one of the world's largest ferrochrome producers (ENRC 2013).^{[ENRC 7]} ENRC's Kazchrome [de] in the Republic of Kazakhstan, integrates four operating companies: Donskoy Ore Mining & Processing Plant, Aktobe Ferroalloys Plant, Aksu Ferroalloys Plant and Kazmarganets Mining Enterprise.^{[ENRC 7]} ENRC's Zhairem GOK, one of the "largest manganese ore mining and processing plants" in Kazakhstan, is a "major supplier of manganese and ferromanganese concentrates to customers throughout Russia, Ukraine, Central Asia and China (ENRC 2013)."^{[ENRC 7]}

Energy

The ENRC is one of the largest electricity providers in Kazakhstan, accounting for approximately 16.3% of the country's recorded electricity production in 2011.^[21]

ENRC operations in the Republic of Kazakhstan

The ENRC's assets in the Republic of Kazakhstan comprise Kazchrome, Zhairem GOK, SSGPO, Aluminium of Kazakhstan, Kazakhstan Aluminium Smelter (KAS)^{[ENRC 6][ENRC 7]}

ENRC is one of the world's largest ferrochrome producers (ENRC 2013).^{[ENRC 7]} ENRC's Kazchrome in the Republic of Kazakhstan, integrates four operating companies: Donskoy Ore Mining & Processing Plant, Aktobe Ferroalloys Plant, Aksu Ferroalloys Plant and Kazmarganets Mining Enterprise.^{[ENRC 7]}

Contributing significantly to Kazakhstan's GDP, one of the world's significant exporters of iron ore; the world's ninth largest producer of traded alumina; and one of the largest electricity providers in Kazakhstan.^{[ENRC 8]}

ENRC is one of Kazakhstan's largest companies, accounting for approximately 3% of Kazakhstan's GDP in 2009. ENRC currently employs over 70,000 people, of which 65,000 are located in Kazakhstan.^{[ENRC 2]}

ENRC operations in Zambia

In February 2010 ENRC purchased a 90% interest in Chambishi Metals PLC, a copper and cobalt producer and smelter located in Zambia.^{[9][10][ENRC 2]}

ENRC operations in Russia

On 4 April 2008 Eurasian Natural Resources Corporation PLC finalized the purchase, first signed on 4 December 2007, of the controlling interest in Serov Ferrochrome Producer (Serov SPA) in Sverdlovsk region, eastern Russia for US$210 million from various entities affiliated with Mr. P Chodiev, Mr. An Ibragimov and Mr. A Machkevitch, founding shareholders in ENRC. Sir David Cooksey, the Non-Executive Chairman of ENRC noted this was ENRC's first transaction outside of Kazakhstan. The purchase agreement (4 December 2007) gives ENRC the economic benefit from all dividends and distributions made after 4 December 2007. The acquisition will provide a strong platform for ENRC in Russia. The purchase provided vertical integration with companies that ENRC operates: Serov Ferrochrome Factory, Saranovskaya Mine Rudnaya and Serov Metalconcentrate Works. Dr. Johannes Sittard, Chief Executive Officer of ENRC, described how the purchase of Serov gave ENRC an asset base and strong platform in Russia.^{[ENRC 9]}

Senior management

ENRC's senior management team consisted of:^{[ENRC 10]}

Upon the acquisition by ERG, many of the previous senior management did not transfer to the new group, left their positions or were replaced in a new structure.

Ownership

ENRC is now owned fully by ERG (Eurasian Resources Group), a private company headquartered in Luxembourg, Grand Duchy of Luxembourg. Alexander Machkevitch is Chairman of the Board of Directors and Mr Benedikt Sobotka is Chief Executive Officer. The ERG is 40% owned by the Kazakhstan government.^[33]