The Neqsol holding, through the company “Cemin Ukraine”, has received permission to privatize the controlling stake in the United Mining and Chemical Company (OGHK), which is a key producer of strategically important ore concentrates in Ukraine. However, the Antimonopoly Committee of Ukraine (AMCU) has imposed a number of restrictions on the new owner, which will be in effect for three years.
This is reported by Finway
AMCU Requirements for the New OGHK Owner
Given OGHK’s significant influence on the Ukrainian raw materials market, the AMCU identified risks to competition, therefore the company “Cemin Ukraine” has committed not to restrict the sale of concentrates in the domestic market without economically justified reasons, not to reduce production volumes, and to adhere to market prices. The company is also prohibited from discriminating against buyers during contract negotiations, which is intended to ensure equal conditions for all market players.
The company has committed not to restrict the sale of concentrates in the domestic market without economic reasons, not to reduce production, and to apply market prices. It is also prohibited from discriminating against buyers during contract negotiations.
To monitor compliance with these conditions, OGHK must submit annual reports to the AMCU. In case of violations, the committee reserves the right to impose appropriate sanctions.
OGHK and Its Strategic Importance
Neqsol, which also owns “Vodafone Ukraine”, paid 4 billion hryvnias for the privatization of OGHK. OGHK is among the top ten producers of titanium raw materials in the world, holding 4% of the global market. The enterprise leads in the production of ilmenite, rutile, and zircon concentrates not only in Ukraine but also in Europe.
The company’s structure includes the Vilya Horod Mining and Processing Plant and the Irshansk Mining and Processing Plant. The Vilya Horod plant has a stable operational outlook until 2030, while the Irshansk plant is expected to operate for at least another 15 years.