The company “Cemin Ukraine,” part of the international holding Neqsol, has acquired the right to purchase a controlling stake in the United Mining and Chemical Company (OGHK) as part of the privatization process. However, this right comes with a number of three-year restrictions established to protect competition in the Ukrainian market.
This is reported by Business • Media
Restrictions and Obligations for the New Owner of OGHK
As reported by the Antimonopoly Committee of Ukraine, OGHK is a leading producer of strategically important ore concentrates in the country, which has drawn increased attention to the deal. To avoid the risks of market monopolization, “Cemin Ukraine” has undertaken official obligations:
- not to restrict the sale of concentrates in the domestic market without substantial economic justification;
- to maintain production volumes and adhere to market prices;
- not to discriminate against buyers in the contracting process.
The Antimonopoly Committee will monitor compliance with these conditions, receiving annual reports from OGHK. In case of violations of the obligations, the committee reserves the right to impose sanctions on the new owner.
The Importance of OGHK for the Ukrainian and Global Markets
The Neqsol holding, also known as the owner of “Vodafone Ukraine,” paid 4 billion hryvnias for the privatization of OGHK. OGHK is among the largest global producers of titanium raw materials, holding about 4% of the global market and ranking among the top ten producers by volume. The Ukrainian company is a leader in the production of ilmenite, rutile, and zircon concentrates both in Ukraine and in Europe.
OGHK comprises two powerful subsidiaries — the Vilnohirskiy and Irshanskiy mining and processing plants. According to estimates, the Vilnohirskiy plant has stable operational prospects until 2030, while the Irshanskiy plant is expected to operate for at least another 15 years.
“The company has committed not to restrict the sales 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 the contracting process. To monitor compliance with the conditions, OGHK will report to the Antimonopoly Committee annually. In case of violations of obligations, the committee has the right to impose sanctions.”