For the first time in Ukraine, a winner has been selected in a competition to develop a lithium deposit under a production sharing agreement (PSA). Prime Minister Yulia Svyrydenko announced following a meeting of the Cabinet of Ministers of Ukraine.
“The pilot project for the mining of minerals is the Dobra lithium deposit in the Kirovohrad region. The deposit will attract a minimum capital investment of $179 million, with $12 million out of this amount allocated for new geological exploration and international audit of reserves, and $167 million for the organisation of extraction and enrichment if the industrial reserves of the deposit are confirmed,” said the Head of Government.
Ukrainian and foreign companies and consortia with available financial resources, technical capabilities and experience in the field of subsoil use were invited to participate in the competitive selection process based on a 100-point evaluation system.
The winner was Dobra Lithium Holdings JV, LLC, whose shareholders were Techmet and The Rock Holdings, well-known companies on the international market. They have significant experience in the extraction of critically important minerals. Techmet owns controlling or dominant minority interests in 10 assets on four continents and has experience in implementing complex projects for the exploration, extraction and processing of critical minerals.
“The project will give impetus to further attracting more investors. The Dobra area is only the first in an ambitious plan to integrate Ukraine into the supply chains of our strategic partners. The production sharing agreement mechanism allows investors to extract minerals under a partnership agreement with the state. At the same time, the deposit remains the property of the Ukrainian people,” emphasised Yulia Svyrydenko.
Attracting strategic investors from the U.S. and the EU also increases international attention to Ukraine, brings in modern extraction and processing technologies, and creates additional security guarantees for our country.
“This project opens up unprecedented opportunities for Ukraine to enter the highly competitive and high-tech global lithium industry together with systemic American partners,” the Prime Minister stressed. (Government portal)