BRI helps to improve infrastructure

Benedikt Sobotka, CEO of Eurasian Resources Group

A1 Since its inception six years ago, the Belt and Road Initiative has quickly become synonymous with economic development and interconnectivity on a global scale. The pronounced presence of this initiative in today's society is the result of productive relationships between China and other economies. According to the most recent statistics, over 125 countries and 29 international organizations have signed cooperation agreements as part of the BRI.

The cooperation between the BRI and Kazakhstan's Bright Road has set new heights for Sino-Kazakh relations, facilitating further development in the energy, transportation and manufacturing sectors. The BRI investments in Central Africa and Latin America, core regions for ERG's operations, are also seen as highly beneficial.

A2 There is extensive research suggesting and confirming that the BRI has helped and will continue to help countries improve their economic output as well as their impact in the global economic arena.

In the context of the electric vehicle industry, ERG views China's economic transition to a greener economy as strikingly positive. Surging demand for electric vehicles, in turn, drives the development in associated industries, such as cobalt and copper - critical materials in the production of lithiumion batteries needed for electric vehicles. As one of the largest cobalt suppliers to China, ERG is delighted to play an important role in this sector and fuel the development of electric vehicles.

A3 Initially we focused predominantly on the sales of mineral products to China. Yet, under the guidance of the BRI, ERG's collaboration with China has taken other forms, including engineering procurement construction and financing, off-take agreements, and equity partnerships.

Several strategic projects implemented by ERG are currently aided by Chinese support, such as our Metalkol RTR cobalt and copper operation in the Democratic Republic of the Congo or BAMIN integrated iron ore mining and logistics project in Brazil.

ERG will continue to develop its current strategic partnerships as means of increasing sales and integrating the opportunities of the BRI further, with the goal of overcoming infrastructural gaps still found in Central Asia, Central Africa and Latin America.

A4 We noted that during the 13th National People's Congress meeting in March, the Chinese government announced that it will deliver major projects focusing on infrastructure and industrial investment, implement projects to improve local peoples' livelihoods, conduct more activities promoting trade and investment opportunities and endorse the construction of free trade areas.

These forward-thinking domestic measures will definitely bring the initiative to a new level. We expect to be an active participant in new events and platforms and to see an international market economy with higher efficiency and a more open environment for enterprises. At ERG, we look forward to seeing more business opportunities brought by the BRI.

A5 Generally, with the implementation of the BRI's route, which extends from China to Europe, vast territories have seen significant development due to their proximity and added value to the BRI's trade route. These territories have experienced increased economic activity and development.

Such is the case for specific areas in the Republic of Kazakhstan, which is the world's largest landlocked country, and, as such, highly dependent on the use of railways. It brings numerous opportunities for Kazakh enterprises based along the BRI route that wish to export their products, since the country now represents a key transport hub for both Europe and the Asia-Pacific region.