The terms of the privatisation of the State Mining and Geology Agency will include environmental obligations regarding sludge storage facilities, according to the Ministry of Economy

The Ministry of Economy has stated that environmental issues will be taken into account in the privatisation of the Mykolaiv Alumina Plant. Photo: NikVesti

The Ministry of Economy has stated that the issues of sludge storage and environmental safety will be taken into account when preparing the terms for the privatisation of the Mykolaiv Alumina Plant (MAP).

This was announced during a briefing by Dariia Marchak, Deputy Minister of Economy, Environment and Agriculture of Ukraine, in response to a question about the fate of the sludge fields in the event of the plant’s sale, according to NikVesti.

According to her, environmental obligations for the future investor are to form part of the privatisation terms, which will be approved by the Cabinet of Ministers. The State Property Fund will be responsible for drafting these terms.

«The specific details of the obligations for investors will be set out in the privatisation terms to be approved by the Cabinet of Ministers. These terms will be drawn up by the State Property Fund, but environmental obligations — everything relating to people and the environment — form part of the framework of investment obligations for the potential buyer,» she said.

She added that the privatisation terms have not yet been drawn up, but environmental issues will remain a key priority during preparations for the sale of the enterprise.

«We are not there yet; we do not yet have the privatisation terms drawn up. But under any circumstances, environmental issues are a cornerstone, and no one will jeopardise anything relating to environmental safety,» emphasised Dariia Marchak.

As an example, she cited the situation at the Odesa Port Plant, where operations were partially restricted due to risks to the population and the environment amid shelling.

«You can see now, for example, that operations have literally been suspended at the Odesa Port Plant to avoid exposing the public to environmental risks due to the threat of shelling,» said Dariia Marchak.

It should be noted that the State Property Fund plans to put the Mykolaiv Alumina Plant (MAP) up for auction in the fourth quarter of 2026 with a starting price of $86 million. The plant is to be sold together with the sludge storage facilities where alumina production waste is stored.

However, two years after the plant was confiscated, the State Property Fund has still not resolved the issue of the sludge waste.

Earlier, the head of the Mykolaiv Regional State Administration, Vitalii Kim, stated that once the war ends, the Mykolaiv Alumina Plant could become one of the first major industrial facilities to attract international investors. According to him, the enterprise could reorient itself towards European and US markets or serve as the basis for establishing aluminium production.

At the same time, the State Property Fund noted that the main obstacle to the privatisation or restart of the plant remains the risks of war, rather than the company’s debts. That is why Ukraine is seeking a strategic investor, particularly from the US or India.

Currently, one of the world’s largest aluminium companies, whose shares are traded on the New York Stock Exchange, has expressed interest in MAP.