Ukraine's mining industry urgently needs systematic government intervention to overcome key barriers hindering investment attraction and normal business operations. The National Association of Mining Industry of Ukraine (NADPU) has formed a list of priority steps that must be taken to stabilize the sector, including land allocation issues and tariff policies.
Main Barriers: Land and Licensing
As noted by NADPU Head Ksenia Orynchak during the United by Mining conference, one of the main obstacles remains difficult access to land plots. While a certain synchronization of processes has been achieved with the State Geocadastre, there is still no proper interaction with the State Architectural and Construction Inspection.
In addition, the association insists on returning to the practice of using two separate licenses—for exploration and for mineral extraction. The currently applied comprehensive licenses require simultaneous processing of both stages, creating too high a financial entry threshold and a large check for potential investors who are not ready to risk without prior detailed study of deposits.
Infrastructure and Tariff Challenges
An equally serious problem for mining companies is the exorbitantly high tariffs for electricity and Ukrzaliznytsia transport services. The increase in railway tariffs that came into effect at the end of August, along with the high cost of energy resources, significantly increases the cost of production of Ukrainian goods, making them less competitive on the international market compared to foreign counterparts.Contradictory Data
While industry associations and large industrial enterprises report a critical increase in financial burden due to infrastructure tariffs and demand immediate state intervention, representatives of the transport sector and relevant departments point to the need to cover monopolists' operating costs and maintain critical infrastructure amid the ongoing economic crisis.
