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The Kirovorad region, Ukraine (AP) – The metallic alumatt is extracted from the sand of the sand in the depths of the earth and is refined using a method that requires the power of gravity, which leads to a substance that shines like the sky of the front of the moon.
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Ukraine is proud of wide reserves of ILMENITE – a major element used for the production of titanium – in heavy metal sand that extends for miles along the besieged East in the country.
Many of them, as with all the critical mineral industry in Ukraine, are backward due to war as well as state policies.
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This is on the verge of change if the administration of US President Donald Trump agrees to an agreement with Ukraine to exchange critical minerals for continuous US military assistance.
In the central region of Kirovohrad, the Ilmenite Open-Pit mine is one of the precious deposits whose owner is keen to develop with American companies. But many unknown people stand in the way of converting these wealth into profit: cost, conditions of licensing and whether this deal will support it by security guarantees.
Ukrainian President Folodimir Zelinski said on Saturday at the Munich Security Conference that he did not allow his ministers to sign a metal resource agreement with the United States because the current version is not “ready to protect us and our interests.”
Ukrainian businessmen who have metal industry in particular have also expressed doubts about whether the deal is viable. The capital density industry is unlikely to achieve results in years, if not contracts, as geological data is either limited or classified. Many conditions that American companies want to risk building industry and whether the current Ukrainian policies have deterred local businessmen so far will accommodate foreign investors.
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“The main thing that we can earn is some security guarantees obtained through economic means, so that a person who is stronger than us has an interest in our protection,” said Andrei Prodsky, CEO of Velta, a leading company at Titanium Mining Company in Ukraine.
The issue of security guarantees
The deal, which would cut one resource to another, can help boost Kiev's relationship with the Trump administration.
The United States is a major consumer of critical raw Earth's minerals such as lithium and muleum, and they are two elements for Ukraine in proven reserves. Industry experts told Associated Press that Trump specifically mentioned rare ground elements, but this is not a good search.
Titanium, used in space, defense and industry, is also the high demand and the United States is the pioneering importer of the Elennit. Mineral sources from Ukraine would reduce future dependence on Russia and China.
On the other hand, KYIV will continue to obtain a fixed stream of American weapons that offer influence against Moscow and without it, Ukraine cannot avoid Russian aggression in the future if the ceasefire.
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Ukrainian businessmen and analysts said that the issue of security guarantees is a corresponding point for companies. A senior Ukrainian official, who is speaking anonymously to describe private talks, AP, said that American companies expressed their interest in investment, but they needed to ensure the protection of billions in the event of renewed conflict. But as soon as it is invested in Ukraine, the presence of American commercial interests alone may be a guarantee, said Prodsky.
“If this process begins, it will continue,” said Prodsky. “Once the investment numbers exceed hundreds of billions, the Americans, a very pragmatic people, will protect their profits acquired on Ukrainian soil. They will defend their interests against Russia, China, Korea, Iran and anyone else. They will protect what they consider.”
Increased American interest
Prodsky, who has just returned from a trip to Washington and New York, said that the conversation between American companies is changing in favor of Kiev.
He said: “Many people in serious and wealthy offices say that now, we – our country and my company – are in the right place and we do exactly what to do at this moment.”
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Velta has worked with American partners for many years. Prodsky began negotiating with companies believed to be a partner in the event of a deal.
Ukraine has never been attractive to foreign investors due to the banned government policies – do not provide incentives to attract foreigners, for example. Brodsky believes that international companies will need to be paired with local partners to flourish.
Ksenia Orynchak, Director of the National Association for Extractive Industries in Ukraine, explained that American companies have several ways to enter the market, but requires passing “certain circles of hell” in the bureau of Ukraine. Cooperation with the current Ukrainian license is likely to be the most obvious.
She said that more exploration is needed in this field, and the existing data has been obtained through the hidden motives. Under the Soviet regime, geologists stood up to earn them if they claimed that they found large reserves.
She said: “Someone did this until Moscow praises Ukrainian geologists or Soviet geology.”
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It advises American investors to reduce the current thresholds for exploration because bidding can take place in areas where only reserves are assumed, and this has not been proven.
“I think, as well as the expert community, that this is not true. In fact, we sell a pig in a bitch.”
The historical sector is not exploited
At the extraction site, the air is thick with ILMENITE dust. When the noon sun rays penetrate the dark area, they shine and dance in the air. Sofar covers the faces of workers who spend hours at home every day extracting the valuable material from the sand.
The way to separate the gravity remove unwanted elements in raw and water separate from the mineral rain down across the floors lined with minerals. The workers are accustomed to being wet and not hitting an eye. Titanium has been developed from the purified ILMENITE in a different facility.
Velta began in the form of an expired license for geological exploration and a business plan for $ 7 million when BRODSKY acquired the company. It will be eight years and invest in millions of others before he can think about productive capabilities.
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Also, the deal is not treated in a decisive element that can prove a challenge later: the position of the Ukrainian people themselves. According to the constitution, the soil in which the extraction will belong to Ukraine.
“I am very afraid that they (the Ukrainian people) have already spoiled reviews, and that everything is given far away. Who allowed him?
These sensitivities were echoed among the workers in the Felta mine. One of them said unknown to express his real ideas: “If you have a vegetable garden in your home, do you call for a foreigner to take it?”
High risk is often a major cause because some Ukrainian businessmen express the special doubts about the deal.
When a businessman heard from a major group of companies about the arms deal against weapons, his first impression was: “This is just hot air”, and he speaks provided that his identity was not disclosed to speak freely about his ideas. This is a dense capital industry. Just to take the ground from an open hole, it will cost you billions. Not millions, billions. ”
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Journalists in Associated Press Koyon Ha in London and Voludmir Yorchuk contributed. Arhirova mentioned from Kyiv.
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