OREANDA-NEWS. December 30, 2007. The Ukrainian ore and mining market becomes increasingly attractive for foreign investors. In May 2008, the Australian-based CCI group is to start a construction of Lubel #1 Mine in Zhovkiv district of the Lvov region, UFC-Capital reports. The license area is located 30 km from the Polish border forming part of Volyn coal-basin, and its commercial reserves amounts to about 150 mn tonnes of the “K” grade coking coal. The Ukrainian part of the deposit contains 86 mn tonnes of coking coal.  Under the investment project the Australian holding expects to invest $254 mn within 7.5 years into CCI Lubel subsidiary, which will do all designing and construction works on a new mine. Part of these funds the Australians plan to raise in the stock markets. According to some information, Lubel expects to place its securities in the AIM-market of London SE at the end of the next year. Taking into account the company’s reserves the capitalization of Lubel may amount to $500-650 mn.

The development plan of the company envisages a construction of the modern mine and washhouse. The company will be able to mine and process 5.2 mn tonnes of coal and produce 4.15 mn tonnes of coal concentrate per year. The complex is to be launched in 2012. With the announced estimated capacity the investor expects to generate more than $175 mn as profits each year.

After commissioning of the complex nearby Lubel village CCI may obtain a significant share in the Ukrainian coking coal market. According to the State Statistics Committee of Ukraine, in 2006, in Ukraine, 80.3 mln tonnes of coal was produced, including 30.2 mln tonnes of the coking coal. With the announced amount of production, CCI Lubel may take 16-17% of this market.

CCI group was established in 1993 by the Australians of Ukrainian origin. The group includes: CCI Australia, CCI Pope, CCI FluidTech, and CCI Ukraine. In 2006, the group produced 12 mln tonnes of coal in Australia. The turnover of the group exceeds $800 mln per year.