Metinvest, the mining and metallurgical group, states that extracting and processing minerals is relatively capital-intensive, requiring investors to make substantial initial investments to develop enterprises. Only large international firms can access such resources, which depend on the stability and predictability of state policy.
“Ukraine is rich in minerals, but this industry demands billions in investment. For instance, developing a mine like Pokrovsk, the last coking coal mine in Ukraine, needs nearly $10B. Currently, there is considerable discussion about coking coal mines in western Ukraine. Initial investments in these projects can reach $3B to $4B – this amount is required just to access the minerals. Will companies be willing to invest these funds while transportation tariffs, electricity rates, and taxes constantly fluctuate?” questions Metinvest’s top manager, Oleksandr Vodoviz.
He noted that no new mines or enrichment plants have been launched in Ukraine in the past 20 years.