United Mining and Chemical Company (UMCC), a key player in Ukraine’s titanium ore mining sector, is set to draw approximately $70 million from NEQSOL Holding B.V. over the next two years, contingent on improvements in the regulatory environment. Since its privatisation in October 2024, UMCC has invested over UAH 2 billion in operational and capital improvements, with a strategic plan aimed at achieving breakeven by 2028.
The company’s management has highlighted that the successful implementation of this investment plan is heavily reliant on the lifting of export controls on rutile and zirconium concentrates. Currently, these restrictions hinder UMCC’s ability to fully capitalise on its production capabilities, as around 50% of its gross value products cannot be sold in external markets. Rishad Aliyev, head of investor relations at NEQSOL Holding, noted that the company has already lost approximately $35 million in potential foreign currency revenue since its privatisation due to these export limitations.
In the first half of 2026, UMCC’s production output exceeded 84% of its total output for 2025, indicating a strong recovery post-privatisation. The company has successfully re-established its customer base in the U.S., Mexico, and EU countries. However, logistical challenges remain, particularly in exporting products from its Vilnohirsk mining and metallurgical plant to the U.S. The ongoing conflict has complicated shipping routes, prompting UMCC to explore alternative rail routes through Romania or Poland, which significantly increases transportation costs and diminishes profit margins.
UMCC’s CEO, Dimitri Kalandadze, emphasised the need for the company to stabilise production and modernise its operations, with a long-term goal of transitioning from raw material exports to producing higher value-added products domestically. The company is also preparing to commence extraction at the “Phase II” section of the Yurske deposit in Zhytomyr region, while three quarries are currently active at “Phase I.”
Despite a challenging financial landscape, with a net loss of UAH 745.4 million reported in the first half of 2026, UMCC’s revenue rose by 34.8% to UAH 1.1171 billion. The company experienced a significant net loss of UAH 2.1182 billion in 2025, attributed to its transition to international financial accounting standards and the write-off of previous liabilities. The privatisation of UMCC by Tsemin Ukraine LLC for nearly UAH 4 billion has positioned the company under the umbrella of NEQSOL Holding, which operates across various sectors globally.
As UMCC navigates these operational hurdles, the State Property Fund of Ukraine has expressed its willingness to collaborate with businesses and government bodies to address the regulatory challenges that currently affect the company’s investment appeal and operational efficiency.
