MINEX Forum

Tag: US-Ukraine Minerals Deal

  • Ukraine Opens Lithium Tender at Dobra Deposit Amid Ownership Dispute

    Ukraine Opens Lithium Tender at Dobra Deposit Amid Ownership Dispute

    Ukraine has launched a tender for the right to develop the Dobra lithium deposit in the central Kirovohrad region, a move hailed as a cornerstone of its new minerals cooperation deal with the United States. The announcement, made by Prime Minister Yulia Svyrydenko, underscores Kyiv’s strategy to leverage its critical mineral wealth — estimated at around 5% of global reserves — to attract Western investment and reduce dependence on China for processing.

    Lithium, essential for battery production, is considered one of Ukraine’s most strategic assets, with the Dobra site believed to hold significant reserves. The government said the winning bidder would sign a 50-year agreement and commit to at least $179 million in investment covering geological exploration, production, and enrichment. “We expect an investor who will ensure not only extraction but also the development of value-added,” Svyrydenko noted.

    The tender, however, risks being overshadowed by a looming legal dispute. Nasdaq-listed Critical Metals (NASDAQ: CRML) and its top shareholder, Australia’s European Lithium (ASX: EUR), claim rights to the project. Board member Mykhailo Zhernov told the Financial Times in July that the Dobra licence had been due to go to Petro Consulting — later acquired by European Lithium — under a prior court ruling. “It is our licence, it is our rights. You cannot propose something for another investor before you finish with us,” Zhernov said. Neither company has provided documentation to substantiate the claim.

    Meanwhile, US-backed mining investor TechMet, which counts Washington among its largest shareholders, confirmed it will bid. CEO Brian Menell said the company has been evaluating the project since 2023 and sees it as a strategic opportunity.

    The Dobra tender is the first major initiative under the April minerals cooperation agreement between Kyiv and Washington, part of President Donald Trump’s transactional approach to Ukraine. The pact gives US firms preferential access to mining projects, with profits earmarked for reinvestment in Ukraine.

  • Prior U.S. Aid to Ukraine Not Included in Minerals Deal, PM Shmyhal Confirms

    Prior U.S. Aid to Ukraine Not Included in Minerals Deal, PM Shmyhal Confirms

    Prime Minister Denys Shmyhal has clarified that past US financial aid to Ukraine will not be included in the pending minerals and natural resources deal between the two countries. Shmyhal made the statement after a visit to Washington for technical talks with US officials on the long-debated minerals deal, which took place from 24-26 April.

    During the visit, Shmyhal met with US Treasury Secretary Scott Bessent to discuss “important political aspects” of the agreement. The Ukrainian delegation and US officials made good progress in their negotiations, according to Shmyhal. He emphasized that the agreement must comply with European obligations, not contradict the Constitution and legislation of Ukraine, be ratified by the Parliament, and not count the assistance provided before its signing.

    The US and Ukraine signed a memorandum on the minerals deal on 27 April , and technical talks were completed by 26 April . However, the agreement has not been finalised yet. The deal has been under discussion for months and has faced delays due to concerns it contradicts Ukrainian law and could interfere with Kyiv’s hopes of joining the European Union.

    The minerals deal has also caused tension between President Volodymyr Zelensky and former President Donald Trump. Earlier versions of the deal granted the US extensive control over a joint investment fund with no offer of security guarantees in return. Trump has touted the minerals deal as a way for the US to “recoup” aid provided to Ukraine over the course of Russia’s full-scale war.

    Deputy Economy Minister and Trade Representative Taras Kachka has stated that the deal would not entail converting previously provided US aid into debt. Instead, the US, as one of the partners, will earn at least as much from the activities of this fund as the aid provided. Shmyhal did not specify a date on which he expects the deal to be signed.