Mineral Agreement with the USA: Profits May Take Decades to Arrive - Media.

Investors looking to start mineral extraction in Ukraine may face obstacles posed by the challenging conditions of war, as this process can take several decades. Mining consultants note that in other countries with well-known mining sectors, such as Canada and Australia, developing mines and extracting strategically important minerals can take 10 to 20 years.

Ukraine also has its peculiarities: most deposits lack sufficient data to assess their economic viability, the infrastructure has been devastated by the war, and there is uncertainty about future security. However, Ukrainian officials view the agreement with the USA as a political breakthrough that aims to bolster support for Ukraine and help it resist Russia's invasion.

For the USA, this agreement is also significant, especially regarding access to rare earth elements used in various industrial sectors. Overall, the agreement could accelerate investments and help the USA reduce dependence on China, which is the largest supplier of these minerals in the world.

The agreement envisions revenue for the reconstruction fund from royalties, licensing fees, and production-sharing agreements. However, details regarding the financial terms of the agreement have not yet been specified. It is also worth noting that establishing a limited partnership between the two countries may pave the way for direct state investments in Ukraine's mining company.

However, there are still obstacles: some potentially profitable projects are located in occupied territories, and the agreement does not provide any security guarantees. Nevertheless, Washington claims that the presence of USA interests will help deter aggressors.

The agreement between Ukraine and the USA opens the way for cooperation in the mining industry and may have a significant impact on Ukraine's economy and political sphere. It provides an opportunity to attract investments, strengthen support from the USA, and help Ukraine grow and develop in a challenging geopolitical situation.