Eurasian Resources Group (ERG) has signed a strategic agreement with a consortium of Primetals Technologies Ltd. and Midrex Technologies Inc. for detailed engineering, key equipment supply, and related services for its upcoming hot briquetted iron (HBI) plant in Rudny, Kazakhstan. The deal follows the completion of pre-engineering and basic engineering phases, marking a major milestone in the project’s development.
The Midrex Flex facility will be one of Central Asia’s largest next-generation metallurgy plants, designed to produce 2 mln tons of HBI annually with a metallization rate above 93.5pct and iron content around 90pct. The plant is engineered for future conversion to hydrogen-based reduction once commercially viable, supporting Kazakhstan’s low-carbon transition.
Using natural gas instead of coke, the MIDREX process significantly reduces emissions compared to traditional blast furnace operations. The plant will process iron ore pellets supplied by SSGPO JSC, another ERG subsidiary, and will have the capability to feed hot product directly into a future steelmaking shop.
Developed through ERG’s subsidiary QazIron ERG LLP, the project represents an investment of approximately USD 1.2 bln and is expected to be commissioned in 2029, creating over 1,000 regional jobs. The facility will include a 7.15-meter Midrex shaft furnace, low-NOx reformer burners, and advanced automation systems to boost productivity and energy efficiency.