Glencore has entered the battle for Eurasian Resources Group, backing a $1.4 billion bid by Kazakh entrepreneur Shakhmurat Mutalip for a 40 percent stake in the former FTSE 100 miner. The Swiss mining giant has proposed an $800 million upfront pre-payment deal in exchange for future ferrochrome shipments to help finance Mutalip's bid.

Mutalip's offer has overtaken a rival bid from Shukhrat Ibragimov, ERG's chair and CEO, in a contest over the direction of the Luxembourg-based company. The transaction would involve purchasing stakes from the families of co-founders Alijan Ibragimov, Patokh Chodiev, and Alexander Mashkevich, who collectively own about 60 percent of ERG. Any deal requires approval from all major shareholders and the Kazakh government, which holds a 40 percent stake.

Glencore's involvement highlights its expanding presence in the ferrochrome market, a key ingredient in stainless steel production. The Swiss company previously attempted to acquire ERG in 2011, partly due to the attractiveness of its ferrochrome operations. With 67,000 employees and assets spanning from Congo's cobalt and copper mines to central Asian aluminium and iron ore production, ERG's ownership battle has significant implications for the global mining industry.