Page 44 - Ukraine OUTLOOK 2025

• 6.8 Metals & Mining
Within the framework of European integration, Ukraine is changing its approach to the search for minerals. The Verkhovna Rada has made amendments to the national programme for the development of Ukraine's mineral and raw material base until 2030, which takes into account the low funding level and Ukraine's partial occupation.
The legislation provides that state funding be reorientated to exploration in order to identify investment-attractive deposits. Further exploration will not be carried out at the state's expense and should be financed by subsoil users who assume the investment risk. The state undertakes to create the necessary transparent and stable regulatory conditions for investor activities. The updated programme provides for a reduction in state funding from UAH26.1bn to UAH3.57bn.
The following minerals hold promise for geological study and further work: magnesium, arsenic, antimony, vanadium, bismuth, gallium, indium, strontium, tellurium and caesium. The programme aims to meet Ukraine's needs for mineral resources, reduce dependence on imports and increase exports.
In January-November, Ukrainian mining enterprises increased their iron ore raw materials exports by 87.4% in 11M24 compared to the same period last year – to 30.25mn tonnes. Revenue grew by 55.8% to $2.53bn.
Iron ore exports mainly went to China, Poland, and Slovakia. As well, Ukraine imported 2,031 tonnes of iron ore for $409,000 (last year, 244 tonnes for $131,000). Imports came from Poland, the Netherlands and Norway. In addition, Ukrainian enterprises increased their revenue from exports of ferrous metals by 18.06% – to $2.87bn. Import costs rose by 14.3% to $1.37bn. The value of metal products exports grew by 6% to $871mn. Expenditures climbed by 16% to $960.59mn. Meanwhile, Turkey increased its import of steel billets from Ukraine by 210% in the first 10 months of the year compared to the same period last year, to 177,010 tonnes. In total, Turkey imported 2.8mn tonnes of billets (+5.3%), and Ukraine is sixth in terms of supply volume.
Ukraine’s largest metal group Metinvest will cooperate with the Italian government to construct a €2.5bn steel plant. Ukrainian mining and metallurgical group Metinvest and the Italian Ministry of Enterprises signed a declaration of cooperation aimed at the revival of industry in the city of Piombino.
Metinvest was the owner of the giant Azovstal metallurgical complex that was destroyed by Russian forces during the siege of Mariupol last year and is seeking to replace it.
The construction of a €2.5bn new modern plant that will produce green steel is planned. Work will begin in 2025, and production will start in 2027. Financial support for the project will be provided by the Italian Credit and Export Agency
44 Ukraine OUTLOOK 202 www.intellinews.com