BGK report: Ukraine with prospects in the titanium industry

Ukraine has the potential on the market of critical raw materials (CRM), and the most perspective is the titanium industry – says BGK in a report dedicated to Ukraine and its CRM resources.

“Ukraine has the potential to become one of the players in the CRM space in the long -term perspective, provided that the warfare is rapidly completed, the continuation of legal transformation and attraction of significant foreign investments. Currently, the most attractive investment sector for international partners is the titanium industry. But also bring benefits to the Ukrainian economy, “it was written.

BGK said that Ukraine's mineral wealth is often overestimated, and the statements about “trillions of dollars” in CRM are significantly exaggerated.

“Although Ukraine has significant reserves of lithium and titanium, Ree deposits are very small. The total value of Ukrainian CRM deposits is estimated at a maximum of USD 775 billion, and the current export in 2024 did not exceed USD 0.1 billion” – it was written.

According to BGK, despite the strategic importance of the elements of rare lands for the industry of advanced technologies, the actual volume of their use in production is insignificant, which puts in question the economic profitability of their extraction.

“One of the problems related to the extraction of elements of rare lands in Ukraine is the occurrence of entities with active licenses that do not conduct mining. In some cases, the goal is to sell an enterprise with an active license for a higher price to a higher entity that intends to start mining” – it was written.

“Ukraine remains behind leading countries in the mining industry in terms of technological development. The use of the potential of Ukrainian deposits requires significant investments in the construction of mines and processing plants, which is unrealistic in a short -term perspective. In addition, attracting investors requires overcoming significant bureaucratic obstacles. Even after obtaining a license, the process of confirming reservations, their quantity and quality may continue to for years ” – added. (PAP Biznes)

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