Recently, the Ukrainian State Assets Fund stated that Ukraine plans to auction UMCC, Europe’s largest titanium zirconium mine, on August 31. At the beginning of this year, the fund also announced the privatization of UMCC for auction, and hoped to obtain an ideal offer through an open and transparent auction.
According to the relevant person in charge, many domestic and European companies have previously expressed interest in the mine. The current starting price for 100% of UMCC’s shares is set at 3.7 billion hryvnias (approximately US$136 million). Earlier, the fund stated that its pricing is expected to be 3 to 5 billion hryvnias and has already been submitted The terms of the bid for the sale of UMCC were approved by the Cabinet.
UMCC and IMMCO currently have a sales agreement. The person in charge of the fund previously stated that the auction will not affect the sales agreement between the two. According to the previous sales agreement signed by the two parties, UMCC supplies about 20,000 tons of titanium ore, rutile and other products to IMMCO every month for the latter to sell on its behalf. IMMCO also supplies its products to the Chinese market.
