The financial payoff from a new minerals deal between Ukraine and the U.S. is likely to take a decade or longer.
According to Ukrinform, this was reported in a Reuters publication.
It is noted that investors will face certain challenges in implementing the agreement.
Developing mines that produce strategically important minerals in countries with advanced mining sectors such as Canada and Australia typically takes 10 to 20 years, according to mining consultants at Benchmark Minerals Intelligence, who made the statement on Thursday.
Most of Ukraine’s deposits remain largely unexplored. Additionally, the energy and transportation sectors face significant issues due to Russia’s full-scale invasion, and future security remains uncertain.
It is also noted that before the full-scale invasion, Ukraine was slow to issue new natural resources licenses. According to the State Service of Geology and Mineral Resources of Ukraine, from 2012 to 2020, about 20 licenses for oil and gas extraction were issued, along with one for graphite, one for gold, two for manganese, and one for copper. In total, Ukraine currently has 3,482 active licenses.
Seven of the 24 potential mining projects identified by Benchmark are located in territories occupied by Russia. These involve the extraction of lithium, graphite, rare earth elements, nickel, and manganese.
As reported by Ukrinform, on April 17, Ukraine and the United States signed a memorandum confirming their shared commitment to a mutually beneficial economic partnership.
On April 30, Ukraine and the U.S. signed an agreement to establish the Reconstruction Investment Fund.
Source: No profit from minerals deal likely for over decade – Reuters
