First Project Under Ukraine-U.S. Minerals Agreement Initiates Bidding Process, Mining Rights May Face Dispute

Ukrainian Prime Minister Yulia Svyrydenko announced on the 27th the initiation of the bidding process for the mining rights of the Dobra lithium mine located in the Kirovohrad Oblast of central Ukraine. The Dobra lithium mine is the first project under the Ukraine-U.S. minerals agreement, but according to British media reports, there is a dispute over the mining rights for this site.

Svyrydenko stated that the formal bidding announcement will be issued within the next two months, followed by a three-month bid acceptance period before the winner is decided.

According to the Ukrainian Ministry of Economy’s official website, the winning bidder must sign a 50-year contract and commit to investing at least $179 million. This amount covers geological exploration, lithium ore production, and refining.

However, as reported by the British Financial Times on the 27th, the mining rights for the Dobra lithium mine are disputed. U.S. Critical Metals Corporation claims that its largest shareholder, Australia’s European Lithium Limited, already holds the mining rights for this site.

Mykhailo Zherov, who serves as a director for both European Lithium Limited and U.S. Critical Metals Corporation, told the Financial Times that the mining license for the Dobra lithium mine should have been issued to "Naftogazconsulting," a Ukrainian company acquired by European Lithium Limited last year. A Ukrainian court ruled in 2023 that the Ukrainian government should issue the license to "Naftogazconsulting," but the license has not been issued to date.

In April this year, Ukraine and the United States signed an agreement to establish the Ukraine-U.S. Reconstruction Investment Fund. The agreement includes provisions granting U.S. companies priority rights to exploit Ukraine’s mineral resources and counting U.S. military aid to Ukraine as an investment in the fund.