The US and Ukraine may wait a decade or more for profits from a minerals deal - Reuters
Kyiv • UNN
Investors face obstacles to launching mines in Ukraine due to the war. Field development takes 10-20 years, and the infrastructure is destroyed.
Ukraine and the United States will begin to reap financial benefits from the mineral agreement in a decade or more, as investors face many obstacles to launching new mines in the war-torn country. This is stated in Reuters, reports UNN.
Details
It is noted that the development of mines for the extraction of strategically important minerals in countries with a developed mining sector, such as Canada and Australia, takes 10 to 20 years.
At the same time, there is a lack of data on most mineral deposits in Ukraine to confirm their economic feasibility
The authors also point out that investors may refuse to direct money to a country where infrastructure such as energy and transport has been destroyed by a three-year full-scale invasion by Russia, "and future security is not guaranteed."
The reality is that people will find it difficult to justify putting money there when there are options to invest in important minerals in countries that are not at war
In turn, Willis Thomas of CRU, a consulting company, noted that "the transition from an open resource to an economically viable reserve requires significant time and investment, which has been limited not only since the beginning of the war, but even before it."
Let us remind you
On May 30, Ukraine signed an agreement with the United States of America on the establishment of the Reconstruction Investment Fund. This was reported by First Deputy Prime Minister - Minister of Economy Yulia Svyrydenko.
Later, she spoke about the key provisions of the signed Agreement. She noted that Ukraine and the United States have formed a version of the agreement that provides mutually beneficial terms for both countries.