Burprom, a company of the Amber Galbin Group, was one of the first companies in Ukraine to acquire special permits for amber mining under the new laws. In four years, it has gone through all the stages and was the first to start commercial production of the stone. Pavlo Bondar, CEO of Burprom, spoke about the company's success.
We have gone through all the stages. I believe that the protection of the reserves and the environmental impact assessment were carried out at a good level. We engaged scientists and employees of the Rivne Reserve. We approached it carefully. And in September, we started industrial production... Today, since September, thanks to commercial production, we have realized 1.8 tons tons of amber. The total revenue amounted to UAH 21 million.
The company influences the development of the local community
"Burprom has been paying taxes regularly for two years. In particular, in 2023, it paid UAH 2 million in rent and subsoil use tax.
In addition, employees are legally employed, for them as well taxes are accrued. In 2023, Burprom paid UAH 900 thousand of unified social tax and UAH 700 thousand of personal income tax.
Pavlo Bondar emphasizes: personal income tax and 30% from rent go to the local budget. Therefore. "Burprom contributes to the development of the Vyriv community, where the company's sites are located.
Black market prevents effective work
Ukrainian amber should be more expensive on world markets. This would contribute to the profitability of the mining business, says Pavlo Bondar. By the way, last year the price of amber increased for 5-7%.
But the positive trend is hampered by illegal miners. They don't pay taxes or other expenses. Illegals spend only on salaries and fuel. Therefore, they set a lower price.
Companies that buy our amber see the price on the black market. They are worried that we are selling at a high price. But this is more a question for law enforcement agencies. If the black market were to shrink by at least half, our price would increase," the Burprom CEO clarifies.
We plan to process amber and make our own products
Burprom will not stop at production.
We have taken certain steps to set up amber processing and production. At first, it will probably be blanks. We will also produce a group of amber souvenir items. This will add value to our products. Because now we give manufacturers from Poland, Lithuania, and China the opportunity to earn money. Ukraine should not be a raw material appendage of these countries," Pavlo Bondar is sure.
Now the team is looking for people who know how to make things, are interested in it, and can teach young people how to work with stone.
Managers of enterprises - masters of geology
Employees of Amber Galbyn Group companies graduated from the National University of Water and Environmental Management.
Last year, five managers defended their master's theses in geology and received their diplomas. Pavlo Bondar recalls that studying the Environmental Impact Assessment course coincided with conducting relevant research. The training has already helped the cause.
We understand that we need to invest in the knowledge of our employees. That is why, in addition to managers, we train middle managers. We also employ university graduates. We plan to engage them in the future. The amount of work will only increase with commercial production."
It is worth noting that the employees of the Amber Galbin group of companies are closely cooperate with university researchers. They suggest adding specialties that enterprises lack. In particular, gemologists, stone cutters, and product designers.
International projects
Last year, the companies of the Amber Galbyn Group participated in at the Amberif World Fair, which takes place twice a year in Gdansk, Poland. It is prestigious and effective, as amber miners have the opportunity to showcase Ukrainian amber and meet customers.
At the 2024 fairs, in addition to raw materials, entrepreneurs plan to present their own products and analyze how competitive they are compared to Polish, Lithuanian, and Chinese products.
In general, the group plans to increase production and expand its presence in global markets in 2024. We have received proposals from South Korea and Vietnam, markets with which we have not yet worked, added Pavlo Bondar.