NESU considers the refusal to issue a special permit for uranium mining to be unjustified - NESU

LLC “Nuclear Energy Systems of Ukraine” (hereinafter – NESU) insists on the groundlessness of the refusal to issue a special permit for uranium mining in the Safonivske field in the Mykolaiv region. We emphasize that our company doesn’t know what inaccurate data the State Service of Geology and Subsoil of Ukraine appeals to in its order, as there is no such information in the document itself. NESU is currently studying the documents in detail and working to clarify all the circumstances and continue to work on the possibility of uranium mining in the Safonivske field. After all, the issue of uranium ore mining to provide Ukrainian nuclear energy with natural uranium of its production is a particularly important and strategic direction amid the acute energy crisis in Ukraine.

NESU emphasizes that for five years the company has invested significant financial, organizational and, time resources in exploration and research, and development of the Safonivske field, fulfilled all obligations imposed on it by a special permit, and achieved the goal of a special permit; defended mineral reserves before the State Commission of Ukraine for Mineral Resources of Ukraine. The unjustified refusal of the State Service of Geology and Subsoil to issue a special permit for uranium ore mining in the Safonivske field threatens not only the development of the uranium mining industry in Ukraine, but also has a significant negative impact on the investment climate in Ukraine and attracting foreign investment into the country’s economy: the investor company can invest millions in geological exploration of the field, search for partners, develop geological documentation, bear the cost of maintaining staff, and tomorrow it will be unreasonably denied a special permit for the operation of the subsoil. That is, an investor has prepared the field for operation, and it will be exploited by other market players who will receive a special mining permit.

“More than 50% of our country’s energy capacity is provided by nuclear energy, which, as of today, subsidizes all types of ‘green’ electricity generation in our country. And the goal of extracting uranium from Ukrainian deposits in the amount needed for our nuclear energy, arose immediately after the independence of our state, so our company will continue its activities to develop the direction of uranium mining in Ukraine. We are convinced that the issue of uranium mining is one of the bases for restoring our country’s energy independence and overcoming the energy crisis, which is stated in the Energy Strategy of Ukraine for the period until 2035 approved by the Cabinet of Ministers of Ukraine,” said Yurii Bakarzhiev, Director of Nuclear Energy Systems of Ukraine.

NESU also draws attention to the fact that the decision of the State Service of Geology was issued with a delay of six months, i.e. seven months after NESU submitted a request for a special permit. Although according to the Resolution of the Cabinet of Ministers №615 of 30.05.2011, such decisions must be published within 30 calendar days after receipt of all approvals provided by law (approvals of the company were received on 01.03.2021).

It should be added that the NESU company performed all the necessary geological and economic studies and protected the mineral reserves of the Safonivske deposit. All relevant protocols of the State Commission for Mineral Resources are in the State Service of Geology. The documents were submitted on time and in accordance with requirements with the Procedure for granting special permits for subsoil use, approved by the Resolution of the Cabinet of Ministers №615 of 30.05.2011, and passed preliminary processing in the State Service of Geology with a positive conclusion.

NESU LLC did not submit any applications for amendments to special permits №4938 (Safonivska tract), 4939 (Mykhailivska area), 4940 (Novohurivska tract). The Company has fulfilled all the obligations imposed on it by special subsoil use permits under the issued licenses.

Note

Nuclear Energy Systems of Ukraine LLC is a company that was established in 2015 to attract investment for the geological study of uranium deposits and uranium mining in Ukraine. The company seeks to provide Ukraine’s nuclear energy with natural uranium of our production, thus contributing to the energy independence of our country.