Petro-Consulting LLC (Kyiv), which early this year received a permit from the State Service of Geology and Deposits of Ukraine to produce lithium ores in the Shevchenkivske field (Velyka Novosilka district of Donetsk region) with 14 million tonnes of deposits, plans to attract a majority foreign partner for developing the field and start production in 2021. “Preliminary feasibility study shows the need to invest more than $120 million in the creation of: industrial infrastructure (electricity, gas, water supply and sewage, road construction to the railway station and the road between the mine and the dressing plant), the construction of a mine at a depth of at least 500 meters and a dressing plant,” the director of the company Ihor Kolomiyets told Interfax-Ukraine.
According to him, for the implementation of the mine construction project, a feasibility study was ordered in one of the international consulting companies.
Kolomiyets said that currently negotiations are being conducted with international investors who have experience in mining of metal ores in mines, enrichment of lithium ores at lithium dressing plants and distribution of lithium concentrate.
“Petro-Consulting has signed a letter of intent with two international companies and is negotiating the signing of the respective contracts. Investors will be attracted on the terms of their participation in the capital, as well as assistance in attracting loans. It is also planned to conclude a long-term off-take agreement,” the company’s director said, adding that one of the companies already has a similar project.
Commenting on publications in the media about the alleged connection of Petro-Consulting with People’s Deputy Ihor Kononenko, Deputy Head of the National Security and Defense Council Oleh Hladkovsky, businessman Vasyl Khmelnytsky, the director of the company categorically denied this.
President of Ukraine Petro Poroshenko says that the reforms implemented in Ukraine are aimed at improving the investment climate. “We are resolutely implementing reforms to improve the investment climate significantly. The evaluation of the World Bank can be more trustworthy than the words of the president. In the Doing Business rating, Ukraine got from the 137th place, before my presidential term, to the 76th place – last year. No country has shown such dynamics. And we do everything possible to get to the top 50 shortly,” Poroshenko said in an interview with the German Handelsblatt business newspaper, quoted by the presidential press service on Monday.
According to Poroshenko, there was a thorough reform of the tax industry in Ukraine, reform in the education, medical and pension sectors, as well as energy sector in terms of state procurement and privatization, which the IMF did not initially believe in. Ukraine also carried out a revolutionary reform of the banking sector. “All these are very unpopular, yet required steps,” he said.
The president added that following the results of the competition for obtaining licenses for the use of 4G communications by mobile operators, Ukraine got UAH 8 billion instead of the expected UAH 5 billion.
“The most important thing is the opinion of investors, and many influential companies have come or returned to Ukraine,” the president said.
Metinvest mining and metal group has placed eurobonds under the 2012 eurobond refinancing program and pre-export financing facility ((PXF-financing): $825 million bonds due on April 23, 2023 and $525 million bonds due on April 23, 2026. According to information in the Bloomberg system, five-year bonds were placed at 98.986% of their face value. Taking into account the coupon of 7.75%, yield for them is 8% per annum.
The eight year bonds were placed at 98.583% of their face value. Taking into account the coupon of 8.5%, yield for them is 8.75% per annum.
As reported, on March 19 Metinvest offered the holders of eurobonds circulating in the market, the total nominal volume of which is $1.187 billion, to redeem the securities ahead of schedule.
The group at the initial stage of the offer received proposals for the buyback of eurobonds for $1.068 billion. In addition, the holders of eurobonds worth $1.149 billion agreed to amend the terms of their circulation.
The deadline for applications for redemption expires at 16:00 London time on April 19, 2018.
Metinvest also reported on achieving agreement with the creditors, who provided PXF-financing, on the revision of the terms of loans, including their extension.
Synchronously the group announced the issue of new bonds.
