"United Mining and Chemical Company" | News | The government prevents idle time for SE UMCC plants
The government prevents idle time for SE UMCC plants
07.11.2016The Cabinet of Ministers of Ukraine approved important amendments to the legislation that are vital for SE UMCC. Following corporatization, the companies of SE UMCC will be not idling, while waiting for issuance of new special mining licenses, explains SE UMCC First Deputy Director General Oleksandr Gladushko.
On November 2, the session of the Cabinet of Ministers of Ukraine passed amendments to the Resolution No. 615 of May 30, 2011 On Approval of the Procedure for Issuing Special Licenses for Extraction.
“Thanks to the amendments approved by the government SE UMCC will preserve the license holder rights for the mineral deposits that are being developed in the process of company's reorganization,” comments Gladushko.
As a reminder, SE UMCC is currently undergoing corporatization, in the process of which the company will be transformed from U-form enterprise into a public joint stock company. In the course of the reorganization from state-owned enterprises to public joint stock company, SE UMCC shall not inherit the minerals developer rights by the previous legislation – they must be acquired anew.
“This threatens to suspend the mining and processing of titanium raw materials, simply speaking idle time,” specified Gladushko. In order to avoid this negative effect, the Ministry of Economic Development and Trade approved a decision in August to postpone completion of SE UMCC's corporatization from October to November, until the amendments to the CMU's resolution are approved, he said.
The amendments approved by the government are perfectly timed, allowing SE UMCC to avoid idle time. “We are happy that the plants are loaded with work, employees get to keep their jobs and all social obligations to the company’s personnel are fully met. That is what we aspire for,” summed up Gladushko.