Under the procedural guidance of the Specialized Environmental Prosecutor’s Office of the Prosecutor General’s Office, the chairman of the board of a mining and processing plant belonging to a group of companies owned by a member of the Parliament of the VII and VIII convocations was served with a notice of suspicion.
The press release does not specify the name of the plant, but photos and videos show the symbols of the Ferrexpo mining company, which includes Poltava Mining and Processing Plant (PGOK).
The chairman of the board is charged with illegal mining and abuse of power committed by a group of persons by prior conspiracy (part 2 of Article 28, part 4 of Article 240, part 2 of Article 364-1 of the Criminal Code of Ukraine).
According to the investigation, the chairman of the board, having entered into a criminal conspiracy with other unidentified officials of the mining and processing plant, set up an illegal scheme for the use of minerals for the purpose of enrichment.
Under the leadership of the suspect, the company, having a license to extract only iron ore, illegally processed and sold other minerals obtained in the process of mining. These rocks are supposed to be stored in specially designated storage facilities. They were processed and crushed into three different fractions, which were sold to business entities.
Between 2015 and 2021, more than 20 million cubic meters of minerals were illegally mined, which is about 164 thousand railcars. The amount of damage caused is over UAH 157 billion. This money can be used to purchase at least four new Patriot systems.
The issue of choosing a measure of restraint against the suspect and seizing his property for further compensation is being decided. Other persons involved in the crime are being identified in order to bring them to justice.
The pre-trial investigation in the criminal proceedings is carried out by the Main Investigation Department of the National Police of Ukraine with the operational support of the Strategic Investigations Department of the National Police of Ukraine and in cooperation with the State Service of Geology and Subsoil of Ukraine.
The press release reminds that according to Article 62 of the Constitution of Ukraine, a person is presumed innocent of committing a crime and shall not be subjected to criminal punishment until his or her guilt is proved in accordance with the law and established by a court verdict.
As reported in Ferrexpo’s semi-annual report, the company continues to monitor and analyze the situation with the accusations of the company’s management by the State Bureau of Investigation (SBI) of mining without a permit and subsequent sale.
On January 10, 2023, the SBI conducted several searches in connection with an investigation into alleged illegal mining. The National Police of Ukraine also investigated the same case and conducted searches and took samples in the dumps on January 17.
“The position of the Mining and Processing Plant is that the minerals in question are not a separate mineral resource, but are waste products obtained as a result of crushing iron ore during the technical process of producing iron ore pellets,” the report stated.
In addition, it is reported that on June 29, 2023, the SBI served suspicions on three representatives of the top management of the Mining and Processing Plant and the head of one of its divisions on suspicion of selling crushed stone without a permit. The employees were detained by the SBI and later released after posting bail totaling UAH 122 million, which was approved by the court.
The report explains that crushed stone sales were controlled by the State Service of Geology and Subsoil of Ukraine for many years and were stopped by the group in September 2021.
“It is the position of the Group that based on the existing mining license, the Group complies with the relevant legislation. The Group continues to monitor and analyze the situation regarding the suspicions announced by the SBI,” the company’s report summarized.
Earlier, the State Bureau of Investigation issued a press release claiming that the plant’s executives had illegally seized almost UAH 400 million from the extraction and sale of minerals of national importance without the appropriate permits.
“SBI officers, in cooperation with the SBU and the Prosecutor General’s Office, served suspicion notices to the management of the PJSC: the management of the plant’s board, heads of departments through which the company’s financial transactions were carried out, and the management of the gasket company through which the fraud was carried out,” law enforcement officials said in a statement.
According to them, “the cash from the sale was withdrawn through conversion centers and distributed among the members of the criminal group.”
The SBI indicated that 15 searches were conducted in the offices and residences of top managers of the company, gasket companies and companies in the transit and conversion sector.
Ferrexpo is an iron ore company with assets in Ukraine, owning a 100% stake in Yeristovo Mining, 99.9% in Bilanivsky Mining and 100% in Poltava Mining.
Ukrhydroenergo and Canadian company AECON Construction Global Services Incorporated (AECON) have signed a Memorandum of Understanding in Ottawa, Canada, on cooperation in the construction of hydroelectric power plants in Ukraine.
According to the press service of the President of Ukraine, the Memorandum was signed by Ihor Syrota, CEO of Ukrhydroenergo, and John M. Beck, founder and chairman of AECON Group Incorporated.
The signing took place in the presence of President of Ukraine Volodymyr Zelenskyy and Prime Minister of Canada Justin Trudeau.
The document provides for the study of the possible participation of the Canadian AECON in the construction of the Kanivska PSP and Kakhovska HPP.
Canada will again provide macro-financial assistance to Ukraine in fiscal year 2024, Prime Minister Justin Trudeau said on Friday in Ottawa after talks with Ukrainian President Volodymyr Zelenskyy.
“We have confirmed that Canada will make a financial contribution to the consortia created by the leader of the United Kingdom to provide military equipment to Ukraine. To ensure that the government has the necessary resources to provide services to its people…today I confirm that we will again provide significant macroeconomic assistance to Ukraine in fiscal year 2024,” he said.
According to him, Canada is “changing its approach,” and now we will provide our assistance for several years, so that Ukraine knows and can receive support on a bilateral basis.
“We are helping farmers whose activities were interrupted by Russia’s actions. We will also provide assistance to the Holodomor Museum in Ukraine, and we will help all Ukrainians to promote mental health,” he said.
He noted that “the new assistance that has been announced builds on the base of almost $9 billion that we have committed to provide and help Ukraine.”
On Sunday, September 24, there will be no precipitation in Ukraine, only in the western regions there will be short-term rain, sometimes thunderstorms, the Ukrainian Weather Center reports.
At night and in the morning in Odesa region there will be fog in some places.
Southeast wind, north in the western regions, 5-10 m/s.
The temperature at night will be 11-16°, on the coast in some places up to 20°. During the day 25-30°, in the western regions 19-24°.
In Kyiv, no precipitation, southeast wind, 5-10 m/s. The temperature at night is 14-16°, during the day 26-28°.
According to the Borys Sreznevsky Central Geophysical Observatory. The highest temperature during the day on September 24 in Kyiv was recorded in 2015, it was 30.0°, the lowest at night was 2.2° below zero in 18881.
On Monday, September 25, there will be no precipitation in most regions, with only short-term rain in the western regions at night.
At night and in the morning in the western regions there will be fog.
The wind will be mostly northeast, 5-10 m/s.
The temperature at night will be 10-15°, in Transcarpathia and the coast 13-18°. During the day 23-28°, in the far west of the country 19-24°.
In Kyiv, no precipitation, mostly northeast wind, 5-10 m/s. Temperature at night 13-15°, during the day 25-27°.
President of Ukraine Volodymyr Zelenskyy and Prime Minister of Canada Justin Trudeau met with representatives of Canadian business in Toronto, the presidential press service reports.
“The participants of the meeting paid attention to the prospects for investing in Ukraine and the necessary prerequisites to start this process before the end of the war,” the statement said.
Zelenskyy thanked Canada for the assistance Ukraine receives and emphasized the importance of implementing projects to restore the country.
“We are very interested in your coming to Ukraine, very interested in the restoration of Ukraine – this is what we need today. These are all areas in which you are strong. We are very interested in your work, business and technology,” Zelenskyy said.
For his part, Trudeau emphasized the importance of economic support for Ukraine.
“A lot needs to be done in terms of humanitarian and military assistance. But there is also a lot to be done economically. So I am glad that we can discuss this with President Zelensky,” the Prime Minister emphasized.
It is noted that the meeting was attended by the Head of the Office of the President of Ukraine Andriy Yermak, his deputy Rostyslav Shurma, Deputy Prime Minister and Minister of Finance of Canada Chrystia Freeland, President of the Ukrainian Canadian Congress Oleksandra Chyczij, heads of companies operating in the investment, banking, export, construction, energy, technology, etc.
In order to increase investment in the development of deposits in Ukraine, it is necessary to remove the classification for official use (DSP) from geological data on critical minerals, according to participants of a special industry conference of the European Business Association (EBA) Mining Day (Mining Day), held in Kiev on Friday.
Denis Alyoshin, Director of Strategic Development at Ukrlicitydobycha, noted that access to information can be a very simple and effective incentive for investment. And now it is possible to get information other than that which has the CPD grip.
“But why now we still have information with the CPD grip? What exactly do we not want to show? When I communicate with international investors, on my project I cannot show the critical information that is needed to evaluate my project. For two or three years we have been sending letters to the Prime Minister or relevant ministries, etc. Everyone supports it, no one understands why we need a CPD,” questions Aleshin.
In his opinion, this is a very simple and very effective step, which will immediately open the door, at least for many investment intentions, “even if not investments, but intentions”. Currently, this is a very painful issue for the industry, the manager emphasized.
Referring to the activities of Ukrlitia, he reported on the implementation of the project for the development of Polokhovskoye lithium deposit (Kirovograd region), the resource base of which is 75 million tons of lithium-bearing ore. The company intends to produce concentrate from it and then lithium hydroxide/carbonate.
“The strategy is to work with Europe, as there is not enough lithium there. Lithium is used in the production of lithium batteries. The plans are to recycle, build a plant. We plan to prepare a study according to EBRD standards to attract financing,” the strategic development director said, adding that one of the biggest problems at the moment is qualified personnel.
In turn, deputy director for investments of the investment company umgi Mykola Shevchenko noted that Ukraine has a number of advantages for attracting investments in subsoil development: “what we have and what we can offer investors”.
“In particular, the vast majority of information in Ukraine is available on various minerals. But there is also CPD on critical minerals. And we support the opening of this information for all investors”, – emphasized Shevchenko, adding that now it is impossible to make a strategic decision on the extraction of certain minerals.
At the same time, the manager named among the advantages of Ukraine – availability of land: in Ukraine there is a mechanism of compulsory purchase of land for system needs, while in a number of countries there is no such thing.
“There is transparency of auctions. There is availability of geological information and detailed exploration of territories, but more openness is needed. Among the economic factors, in particular, the low cost of land ($3 thousand, and for example in Poland – $40 thousand) and the low cost of labor ($600),” – stated the deputy director.
In his opinion, to attract investors it is necessary to guarantee military risks, guaranteed withdrawal of dividends, fiscal incentives: tax vacations, preferential long-term lending, decentralization of taxes, so that part of the tax remained locally. Also speeding up and simplifying the change of land designation, greater openness of all geological information.
“We have invested in most of the projects in Ukraine – in mining, and less in processing, as there are certain chemical processes required, there are difficulties in obtaining permits from environmental authorities,” explained the manager.
Andriy Gorokhov, CEO of umgi, added that there is currently no operating critical materials player in Ukraine that is successful: this means that we are not doing something enough as a society.
“Companies have now taken considerable risks and are investing in critical industry projects. They are doing it themselves thanks to equity capital. With no help from the government. They are doing well and are heroes because they are taking big risks. No strategy from the government, no support. It takes a lot of effort, and it is very difficult to cope with the problems alone,” the top manager emphasized, noting that projects in this area are estimated from $300 million to several billion dollars “to build both production and process.”
Therefore, it is difficult for investors to make decisions taking into account the current situation and low returns on funds invested in the projects.
