Ukrainian mining market representing 7.8% of GDP

Press Release   •   Jul 31, 2012 17:17 BST

The value of the Ukrainian mining market grew at a compound annual growth rate (CAGR) of 18.08% between 2007 and 2011, and by the end of this period mining had become one of the country's key economic drivers, representing 7.8% of GDP in 2011.

The Ukrainian mining industry is estimated to be worth more than $5 billion, with a total mineral production volume of more than 170 million tons. This is estimated to grow to 200 million tons by 2015, largely due to its increased coal production.

The country is the sixth-largest producer of iron and the seventh-largest producer of manganese in the world.

Growth within the Ukrainian mining market relies heavily on the country's geographical location. Ukraine is located in a favourable position for international trade as it is situated on the crossroads between Asia and Europe. Therefore, industry growth is predominantly driven by exports.

In recent times the safety of the Ukrainian mining market has become a major issue. Ukrainian coal mines are considered to be among the most dangerous mines in the world, due to because of outdated equipment and widespread disregard for safety regulations, with some of the highest rates of coal miner deaths in industrial accidents and mine explosions each year.

However, the restructuring and privatisation of the industry are expected to improve both the safety and productivity of mines across the country, reducing the country's dependency on imports of coal.

For more information on the Ukrainian mining market, see the latest research: Ukrainian Mining Market Report

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