KYIV, Dec 21 – If a new mechanism for calculating royalty for manganese ore extraction in Ukraine is adopted in accordance with bill No. 6345-1, the corresponding deductions from Pokrov (previously Ordzhonikidze) and Marhanets Mining and Processing Plants (both located in Dnipropetrovsk region) can reach UAH 0.5-1.1 billion per year, while now they amount to UAH 120-160 million.

"According to my estimates, under the new mechanism, companies mining manganese ore in Ukraine [Pokrov and Marhanets plants] will pay UAH 0.5-1.1 billion per year. This is an estimate for the market as of mid-December 2021. If the market changes drastically, then payments can be significantly higher and significantly lower, because an important feature of the new mechanism depends on a market situation," Dmytro Khoroshun, analyst at Concorde Capital, told Interfax-Ukraine, adding that this estimate is based on the total production of enriched manganese ore by Pokrov and Marhanets plants in the amount of 1.9 million tons annually.