Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Through its programme ‘Turning Waste into Profit’, Eurasian Resources Group (“ERG” or “the Group”), a leading diversified natural resources group, uses up to twenty types of waste – generated from its activities – to manufacture new products, help address environmental issues and strengthen its bottom line.
Launched in 2017, the initiative allowed ERG to sell over 150 kt of waste generated by its operations in Kazakhstan for subsequent processing into products such as noise insulation materials, refractory coating, polymers and substitutes for expensive coke and fluorspar. In doing so, the Group has helped mitigate the adverse impact of waste disposal into landfills and generated a profitin excess of $3m in 2017 alone.
In the first half of 2018, ERG has helped to prevent the dumping of over 88 kt of waste and already earned circa $2.6m from its sale.
Commenting on the programme, Ayan Bedelkhan, Head of Non-core Product Sales at ERG Commercial Centre LLP, a subsidiary of the Group that presides over the sale of waste, said: “Addressing key environmental issues is a priority for ERG. Through ‘Turning Waste into Profit’, ERG is committed to managing waste in a responsible manner.”
He added: “At the same time, the sale of waste as recyclable materials has proved to be a profitable business. It also drives an increase in tax revenues in the regions that ERG sells waste to local companies which they sell as a processed, finished product.”
On top of having a positive economic impact, the initiative also helps to improve the environment of the towns and cities that are home to ERG’s operations.
Svetlana Mogilyuk, Chair of ECOM LLP and Director of the Aarhus Centre in Pavlodar, said: “The reduction of industrial waste accumulation is a key priority for Kazakhstan as it aims to transition into the ‘Green Economy’, as was set out in the Presidential Decree in 2013. Through ‘Turning Waste into Profit’, ERG demonstrates that companies can reduce their environmental footprint and obtain significant economic benefits at the same time. We are glad that the Group has found ways to reduce waste generation as well as the associated air, soil and water pollution and transform waste into useful products.”
