Subsoil as a key component of Ukraine’s “economic shield”

25/ 10/ 2024

On October 21, the European Business Association held a special industry event, Mining Day, bringing together key stakeholders in mineral resources, industry experts, government representatives, and international partners. Discussions focused on the current state and future of the sector, specifically how artificial intelligence, EU partnerships, and the strategic importance of mineral resources could soon transform the industry and contribute to Ukraine’s victory. At the event’s start, Svitlana Mykhailovska, Deputy Director of the EBA, presented findings from the survey Subsoil use in the context of war and development prospects. Among surveyed subsoil users, 78% view the sector as investment-attractive, and 71% continue to invest in Ukraine’s mineral resources despite the war. In his address, Oleh Bondarenko, Chair of the Verkhovna Rada Committee on Environmental Policy and Natural Resources, discussed pressing issues affecting the industry, including the consequences of hostilities, unstable power supply, and the inadequate regulation of employee reservation. Mr. Bondarenko highlighted the survey’s findings regarding necessary incentives for sector development and invited further business input to improve the regulatory environment and protect the rights of mineral resource users. He emphasized the importance of addressing strategic and critical minerals, which may require changes to the country’s Mineral Resources Development Program. According to Mr. Bondarenko, resolving this matter will also enhance Ukraine’s status on the international stage, as its natural resources could form part of an economic shield to ensure national security. He also mentioned ongoing efforts with businesses to address more specific issues, such as mining waste management, extending special permits, and handling land containing mineral deposits. Roman Opimakh, Head of the State Service of Geology and Mineral Resources of Ukraine, emphasized that authorities are doing everything possible to support businesses and continue existing initiatives. Mr. Opimakh noted that investments in the sector are ongoing, and the service understands what needs to be done to increase the flow of investment. He thanked the community for their feedback on the survey, particularly regarding the importance of lifting the classification on geological information, and announced a readiness to work on proposals for improving business-government cooperation at a dedicated meeting with the EBA’s Subsoil Use Committee. Additionally, he shared plans for service digitalization and the use of artificial intelligence; currently, all five key services are digitalized and available online. Over 3,000 applications have been processed in 18 months through the electronic mining user cabinet, and electronic reporting is available for two of three forms. Mr. Opimakh emphasized the importance of applying modern computer technologies in the mining sector, including AI algorithms. GeoAI will allow automatic responses to user requests, such as finding new promising mineral deposits. Dmytro Kashchuk, Business Development Director of the Geological Investment Group and Chair of the EBA Subsoil Use Committee, noted that investments in minerals are long-term, representing not only a business project under current conditions but also a symbolic gesture of support and confidence in the country. According to Mr. Kashchuk, the level of investment in the industry is quite substantial, considering the third year of full-scale war. Processes and changes in the sector are ongoing, though slower due to numerous challenges. Currently, a major problem is the lack of foreign investment, as investors are awaiting positive news from the front to make decisions without fear. Mr. Kashchuk stated that Ukraine has all the prerequisites to become a significant player on the global stage, with a strong resource base, industry reform, and transparent business conditions. Resource users face current challenges, such as logistics difficulties and law enforcement pressure, while digitalization is highly praised by both businesses and international partners. Soon, a new educational Program in Project Management in Subsoil Use, by the Kyiv School of Economics with EBA support, will be launched for industry specialists. Tymofiy Mylovanov, President of KSE, presented general information about the Program at the event. During the ESG in Subsoil Use panel discussion, representatives from the business and civil sectors discussed industry development in terms of balancing impacts on the economy, society, and the environment. Special thanks for meaningful discussions go to Alyona Shulima of Pragma Consulting Group, Andrii Gorokhov of umgi, Artem Petrenko of the Association of Gas Producers of Ukraine, Iryna Suprun of the Geological Investment Group, Liudmyla Tsyganok of ESG Liga Ukraine, and Olha Semkiv of ArcelorMittal Kryvyi Rih. Participants of the Financial Incentives in Subsoil Use panel discussed potential sector growth under sufficient financial incentives and financing programs available in the mining market. Many thanks for valuable presentations and discussions to Volodymyr Lavrenchuk of NEQSOL Holding Ukraine, Sergii Voitsekhovskyi of BGV Group Management, Tony Pollack of US DFC, Mark Mavhinney of the European Investment Bank, Tetiana Dzhumurat of the EBRD, and Olena Gil of the USAID Investment for Business Resilience Activity Project. We extend our sincere gratitude to the active business representatives, engaged speakers, moderators, guests, and partners of the event. Key partners – Geological Investment Group, Ukrlithium, umgi, BGV Group Management. Media partner – Mind. Головні партнери Партнер Інформаційний партнер

On October 21, the European Business Association held a special industry event, Mining Day, bringing together key stakeholders in mineral resources, industry experts, government representatives, and international partners. Discussions focused on the current state and future of the sector, specifically how artificial intelligence, EU partnerships, and the strategic importance of mineral resources could soon transform the industry and contribute to Ukraine’s victory.

At the event’s start, Svitlana Mykhailovska, Deputy Director of the EBA, presented findings from the survey “Subsoil use in the context of war and development prospects.” Among surveyed subsoil users, 78% view the sector as investment-attractive, and 71% continue to invest in Ukraine’s mineral resources despite the war.

In his address, Oleh Bondarenko, Chair of the Verkhovna Rada Committee on Environmental Policy and Natural Resources, discussed pressing issues affecting the industry, including the consequences of hostilities, unstable power supply, and the inadequate regulation of employee reservation. Mr. Bondarenko highlighted the survey’s findings regarding necessary incentives for sector development and invited further business input to improve the regulatory environment and protect the rights of mineral resource users. He emphasized the importance of addressing strategic and critical minerals, which may require changes to the country’s Mineral Resources Development Program. According to Mr. Bondarenko, resolving this matter will also enhance Ukraine’s status on the international stage, as its natural resources could form part of an “economic shield” to ensure national security. He also mentioned ongoing efforts with businesses to address more specific issues, such as mining waste management, extending special permits, and handling land containing mineral deposits.

Roman Opimakh, Head of the State Service of Geology and Mineral Resources of Ukraine, emphasized that authorities are doing everything possible to support businesses and continue existing initiatives. Mr. Opimakh noted that investments in the sector are ongoing, and the service understands what needs to be done to increase the flow of investment. He thanked the community for their feedback on the survey, particularly regarding the importance of lifting the classification on geological information, and announced a readiness to work on proposals for improving business-government cooperation at a dedicated meeting with the EBA’s Subsoil Use Committee. Additionally, he shared plans for service digitalization and the use of artificial intelligence; currently, all five key services are digitalized and available online. Over 3,000 applications have been processed in 18 months through the electronic mining user cabinet, and electronic reporting is available for two of three forms. Mr. Opimakh emphasized the importance of applying modern computer technologies in the mining sector, including AI algorithms. GeoAI will allow automatic responses to user requests, such as finding new promising mineral deposits.

Dmytro Kashchuk, Business Development Director of the Geological Investment Group and Chair of the EBA Subsoil Use Committee, noted that investments in minerals are long-term, representing not only a business project under current conditions but also a symbolic gesture of support and confidence in the country. According to Mr. Kashchuk, the level of investment in the industry is quite substantial, considering the third year of full-scale war. Processes and changes in the sector are ongoing, though slower due to numerous challenges. Currently, a major problem is the lack of foreign investment, as investors are awaiting positive news from the front to make decisions without fear. Mr. Kashchuk stated that Ukraine has all the prerequisites to become a significant player on the global stage, with a strong resource base, industry reform, and transparent business conditions. Resource users face current challenges, such as logistics difficulties and law enforcement pressure, while digitalization is highly praised by both businesses and international partners.

Soon, a new educational Program in Project Management in Subsoil Use, by the Kyiv School of Economics with EBA support, will be launched for industry specialists. Tymofiy Mylovanov, President of KSE, presented general information about the Program at the event.

During the “ESG in Subsoil Use” panel discussion, representatives from the business and civil sectors discussed industry development in terms of balancing impacts on the economy, society, and the environment. Special thanks for meaningful discussions go to Alyona Shulima of Pragma Consulting Group, Andrii Gorokhov of umgi, Artem Petrenko of the Association of Gas Producers of Ukraine, Iryna Suprun of the Geological Investment Group, Liudmyla Tsyganok of ESG Liga Ukraine, and Olha Semkiv of ArcelorMittal Kryvyi Rih.

Participants of the “Financial Incentives in Subsoil Use” panel discussed potential sector growth under sufficient financial incentives and financing programs available in the mining market. Many thanks for valuable presentations and discussions to Volodymyr Lavrenchuk of NEQSOL Holding Ukraine, Sergii Voitsekhovskyi of BGV Group Management, Tony Pollack of US DFC, Mark Mavhinney of the European Investment Bank, Tetiana Dzhumurat of the EBRD, and Olena Gil of the USAID “Investment for Business Resilience Activity” Project.

We extend our sincere gratitude to the active business representatives, engaged speakers, moderators, guests, and partners of the event. Key partners – Geological Investment Group, Ukrlithium, umgi, BGV Group Management. Media partner – Mind.

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