The Russia-led Eurasian Development Bank (EDB) and Kazakhstan-based Eurasian Resources Group (ERG) signed a memorandum of cooperation during the recently held St Petersburg International Economic Forum.

The memorandum sees the EDB agreeing to consider extending a credit facility to Sokolov-Sarbai Mining Production Association (SSGPO) for pre-export financing along with financing for the company’s investment programme.

“We’ve been cooperating with ERG since 2016 and it is one of our anchor partners. [Subsidiary] SSGPO is among Kazakhstan’s largest mining companies. It is developing the Sokolovsky, Sarbaisky, Kacharsky and Kurzhinkulsky open-pit mines, the Alekseevsky dolomite mine, and the Sokolovskaya underground mine. The company supplies iron ore concentrate and pellets to the Kazakh, Russian, and Chinese markets. Our cooperation aims to further develop the company’s trade relations with Russian companies. The EDB is ready to consider financing for the projects proposed by SSGPO,” said Nikolai Podguzov, chairman of the EDB Management Board.

Benedikt Sobotka, CEO of ERG, commented: “The new agreement signed with the EDB, with whom we have been collaborating for 5 years, will further enhance the resilience of our iron ore giant, SSGPO, and strengthen cooperation with ERG as a whole. These arrangements will guarantee the sale of SSGPO’s iron ore products in the long term, support its development strategy and assist with investment projects using ESG-compliant state-of-the-art technology. We are constantly working to ensure that ERG’s products meet the highest standards of quality and market needs. SSGPO, along with the group’s other operations, is implementing the ERG Way Production System, which involves continuously improving our production practices and investing in employee development.”