Ukraine’s remote mineral exploitation dream

In snow -covered fields in central Ukraine – where one of the largest confirmed lithium mines in the country – a small group of environmental experts of CDM Engineering Ukraine drop sensors down the holes to measure the underground water level.

This survey was conducted by their contracts with Ukllithium Mining mining enterprises. Denys Alyoshin, director of the company’s strategic, said that before the war broke out, they had a lot of trade talks with investors interested in the project.

“But when the conflict begins, a wisely executive will not go to a war, they will go to Zimbabwe, Canada or Africa. There are many places to come without armed clashes,” said Alyoshin.

Ukraine owns 22 of the 50 minerals classified by the United States as important and has significant reserves such as lithium, graphite, titanium, uranium. The Ukrainian Geology Institute said the country also has large soil mines including Lanthanum, Xiri, Neodymium and Yttrium but has not produced any kind.

The demand for many types of minerals is quite high. Lithium is used in electric car batteries, and rare soil applies diverse, from car engines, wind power turbines to advanced military weapons systems. But according to experts, the prospect of exploiting this resource of Ukraine is far away, due to a series of challenges.

Gracelin Baskaran, Director of important mineral security program at the Center for Strategic and International Research (USA), said the mining industry consumes about 20% of the global energy. Therefore, it requires strong power infrastructure. “Ukraine has been bombed. They are not really competitors due to the huge infrastructure and security risk,” she said.

On February 28, observers expect a mineral agreement to be signed by Ukraine and the US, after the meeting of Ukrainian President Volodymyr Zelensky and US President Donald Trump at the White House. The sources of Reuters Indicate the content of the agreement is expected to focus on the establishment of “rebirth investment fund” managed by the two countries. In particular, Kyiv will contribute 50% of the future revenue of natural resources owned by the State.

The draft agreement is said to have no security guarantee directly committed from the Trump administration. However, with Denys Alyoshin, just an agreement with the participation of the US also helped Ukraine less hurt than conflict with Russia in the long term.

However, no agreement was signed. The meeting at the Oval Office became a shock to the global media when the two chores and Mr. Zelensky were asked to leave the White House earlier than expected.

Denys Alyoshin said that without some Western security forms, the development of Lithium Polokhivske mine would be very difficult. Because it is the largest mine in Europe but it is only 240 km northwest of Russia. A senior American official said Reuters That President Trump did not completely give up the agreement after the argument. Of course, it is essential that Ukraine is ready to construct constructive.

In the future, even when the long -term peace returns to Ukraine, the awakening industry also takes a lot of time and money. According to more than 10 analysts and experts in the mining industry Reuters Surveying, in order for lithium reserves to rare soil in this country into mines operating and building processing facilities that require “huge work” volume.

Ukllithiumining company estimates that it is necessary to raise US $ 350 million and at least 1.5 years to conduct feasibility research, before being able to start building a mine and factory. “That means we will be able to achieve a stable output in 2029,” Alyoshin said.

However, 7 mining enterprises and analysts told Reuters That Alyoshin’s timeline is optimistic. According to them, the exploration stages usually take 4 years. The feasibility study will take another year before the construction of a processing factory may start.

“Even if everything is fine, it takes at least 8 years to make the Polokhivske mine developed to the stage of lithium production that can be used,” Federico Gay, analyst at the Mineral Intelligence Benchmark (BMI), the London-ion Battery Supply Supply Supply Chain, said.

Moreover, this mine is very deep and may need $ 800 million to build mine and factories. Gay added that it may need another billion USD to produce the lithium compounds needed for the battery.

Julian Kettle, Vice President in charge of metal and mining at Wood Mackenzie Natural Resources Consulting Company, said Ukraine is producing titanium and has many lead and lithium mines. “You can expand production in existing mines. But when it comes to new development, from the discovery to the finished material, it can take up to 10 years,” he estimated.