Mining

Ukraine possesses significant natural wealth, with high concentrations of mineral resources that are compactly located and easily accessible. The country ranks among the global leaders in reserves of coal, iron ore, natural gas, manganese, salt, oil, graphite, sulfur, kaolin, titanium, nickel, magnesium, timber, and mercury. As of 2024, despite challenges posed by large-scale war and economic instability, Ukraine’s mining sector remains a vital component of the national economy.

The past five years have shown notable growth in the sale of metallic ores, driven by rising global metal prices and increased production capacity. However, over the last two years, sales volumes have contracted significantly due to the impact of military actions on infrastructure and broader economic disruptions. A similar trend is evident across other mineral categories, such as stone, sand, and clay, which saw rising sales until 2021, followed by declines in the past two years. Extraction in niche mineral segments remains at lower, stable levels due to limited investment. A critical factor for future development is the need for technological upgrades and reduction of environmental impacts in extraction processes.

Investment opportunities in Ukraine’s mining and processing sector, beyond traditional coal, oil, and gas, span several key areas. Ukraine is one of the world’s leading producers of iron ore, and further development of mining capacities and processing could create substantial added value. The country also holds significant titanium reserves, offering potential for the aerospace, chemical, and medical industries. Deposits of nickel and cobalt form a solid foundation for the battery production sector, essential for electric vehicles and high-tech industries. The development of gold-bearing deposits remains an attractive investment opportunity due to the consistent demand for gold. Additionally, the rising demand for graphite and rare earth elements used in electronics and renewable energy opens up prospects for growth in these sectors within Ukraine.

Global trends toward electric vehicles, renewable energy, and other advanced technologies are driving increased demand for critical minerals and rare earth elements. With 117 types of minerals out of 120 known globally, Ukraine has substantial potential to meet this demand. The country’s mineral diversity can underpin the growth of sectors producing components for cutting-edge technologies and accelerate Ukraine’s integration into global production chains.

Given its resource wealth and strategic geographic location, Ukraine has significant potential to attract investment into its mining and processing industries, which could play an essential role in revitalizing economic growth in the future.

In recent years, the Government of Ukraine significantly improved and liberalized the system of granting permits for extraction of minerals. Moreover, the State Service of Geology and Subsoil of Ukraine presented an Investment Atlas of Subsoil Management, which comprises over 140 fields to be set for electronic auctions in the near future.

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