In a recent move, the Ministry of Energy of Ukraine has drafted a bill that enables the transfer of all uranium mining licences in Ukraine and the subsequent corporatisation of the state-owned Eastern Mining and Processing Plant (VostGOK) to tender it further to “a strategic investor.” VostGOK is Ukraine's largest and oldest uranium mining and initial processing site, operating since 1946. This critical step could be an essential breakthrough in using Ukraine's uranium resources in cooperation with global players.
According to the 2022 edition of the IAEA’s Red Book, Ukraine has uranium resources of 185,400 tU, with 71,800 tU of these recoverable at under $80/kgU. These are by far the largest developed deposit in Europe.
Ukrainian uranium deposits are proven to be enough to fuel the existing country’s 15 nuclear reactors for many decades at an affordable cost. Still, the inefficiency of state management, corruption, and underinvestment kept Ukrainian uranium production on hold. Production had been below 800 tonnes annually—around 30% of the country's requirements for many years. Since 2022, production has even declined.
In 2023, Ukraine signed a 12-year deal to buy uranium from Canadian miner Cameco Corp to cover the needs of nuclear reactors and end reliance on Russian nuclear fuel. Under the agreement worth at least $4 billion, Cameco will supply Ukraine with uranium hexafluoride (UF6) from 2024-2035 to end its reliance on Russian fuel. The deal covers the nine reactors under Ukrainian control, with an option to supply six captured reactors in the southeastern Zaporizhzhia region after Ukraine retakes them. While Ukraine will rely on Cameco for uranium, it has struck separate deals for further processing with United Kingdom-based Urenco Group to enrich the uranium and with U.S.-based Westinghouse to fabricate it into reactor fuel.
Ukraine’s “victory plan” for the incoming Donald Trump administration highlights potential business deals, including access to raw materials. President Zelensky presented the plan in the autumn of 2024 in the US and the EU capitals. Ukraine is rich in natural resources, including critical metals worth trillions of dollars. Obtaining control over Ukraine's globally significant energy and food production potential was among the key Russian aggressive goals in this war. At the same time, properly using it could be an opportunity for the United States, the EU and G7 partners to provide for Ukraine’s economic growth and get a solid return on investment. The economic section of Ukraine's “victory plan” has a secret annexe shared with specific interested partners.
Comments