27 May 2021, Thursday, 18:03 139

Company Owned By Concord Capital Starts Amber Mining In Rivne Region

Редактор: Daria Zubkova

The Soniachne Remeslo Center company, owned by Concord Capital, has begun amber mining in Rivne region near the village of Volodymyrets.

The founder and director general of Concord Capital, Ihor Mazepa, announced this to journalists.

He noted that amber mining began a week ago, and preparation for mining took about four years since the license was received, mainly due to the registration of the necessary documents.

In particular, it took three government decisions.

At the same time, the company received full support from the regional and local authorities.

He emphasized that Soniachne Remeslo is the first company in Ukraine that has started the legal extraction of amber at a licensed deposit.

"We are, in fact, the first private company that legally mines amber," Mazepa said.

According to him, investments in the project amounted to about USD 5 million, the approximate payback period is 1-2 years.

According to Andrii Petukhov, the operational director of Soniachne Remeslo, the area of the licensed area is 83 hectares, the license term is until 2029, while production will be carried out on an area of 60 hectares.

According to geo-prospecting data, the expected amber reserves at the site are about 40 tons, the expected capacity under the license is 22.5 g per cubic meter.

The company expects to exhaust these reserves in 5-6 years.

At the same time, a 100% extraction of amber from the soil will be carried out, and biological reclamation will be carried out on the worked-out areas - a forest will be planted.

The company has already planted 18 hectares of forest in a nearby abandoned place.

According to Serhii Chuikin, Managing Director of Concord Capital, the prime cost of amber mining is USD 200 per kg, while the average selling price, taking into account the strong variation in cost depending on the ore fraction, is about USD 400 per kg.

The company intends to sell amber at open auctions and on May 26 launched the first of them, having already sold part of the extracted products.

So far, Soniachne Remeslo will sell unprocessed amber, but this year it plans to open a complex for grinding and cutting stone in order to expand the sales market for its products.

The main sales markets are Ukraine, China and the countries of the Arab world.

According to the state register of legal entities and individual entrepreneurs, 58% of the Soniachne Remeslo Center belongs to Concord Capital, 32% belongs to the director of Soniachne Remeslo, former Member of Parliament Yurii Blahodyr, 10% - to the director of the Ukrainskyi Burshtynovyi Svit association Halyna Simkha.

As Ukrainian News Agency earlier reported, Concorde Capital is a leading Ukrainian investment company, founded in 2004, which provides a full range of international brokerage and investment services.

Using various financial instruments, the company has raised over USD 3 billion for Ukrainian companies in the metallurgy, automotive, real estate, chemical, oil and gas, agricultural and pharmaceutical sectors.