Canadian Black Iron will submit a new application for the Shymaniv iron ore deposit after the updated Investment Support Agreement.

The company noted that the Ministry of Economy of Ukraine has updated legislation on investment support agreements and is now accepting applications through UkraineInvest.

Black Iron took advantage of legislative innovations that allowed the government to transfer land to the company at preferential rental rates. The agreement also freezes current tax and royalty rates for the 15-year term of the investment agreement. The exemption from import duties and VAT on new equipment purchased for construction within the project will save “tens of millions of dollars.”

Also, the government of Ukraine provides political risk insurance in accordance with MIGA requirements. According to the 2021 presentation, the expected capital investment for the launch of the project’s first stage is estimated at $452M, the second – $364M. Black Iron will build a factory to produce premium iron ore raw materials with an iron content of more than 68% and a capacity of 4 million tons per year in the first stage and 8 million tons in the second.