Turkey’s gold production was peaked in 2019 with 38 tons. Before the Covid-19 pandemic affected whole world, Turkey’s 2020 estimates was showed that gold production would reach to 45 tons, thanks to encouraging private sector investment and the number of facilities which was started operation at the beginning of 2020.
Despite the negative effects of the pandemic, Energy and Natural Resources Minister Fatih Dönmez stated that Turkey maintains 2020 gold production target of 44 tons despite the coronavirus pandemic.
According to the Daily Sabah’s news, Dönmez said mining activities in Turkey have rebounded since July after the country lifted most of its lockdown measures as of June.
Emphasizing the Turkey’s aim of reaching 100 tons of gold production within the next five years, Dönmez commented about the recent exploration studies: “We have taken aerial X-rays of every angle of Turkey using aerial geophysical imaging, which we started in 2017 and completed in 2018.”
Along with geophysical imaging works, drilling activities in Turkey also increased drastically. Dönmez commented about the results of the drilling activities: “As a result of our annual drilling activities, we also have determined the reserves of certain mineral assets besides gold, determined the delineations of the relevant region, and operated the field, bringing it in line with the economy.”
Producing a total of 338 tons of gold between 2001 and 2019, it is known that Turkey have a lot more. Scientific studies shows that Turkey’s potential reserves total 6,500 tons, from which 1,500 tons have been extracted so far.
Dönmez also highlighted effects of gold production to Turkeys economy. Noting that Turkey has import about 150 tons of gold each year, Dönmez said imports would significantly drop one the Turkey reached its production target.
Dönmez noted the role of the gold imports on Turkey’s account deficit: “We see that gold imports play an important role in the formation of the current account deficit. For example, in 2019, we imported $12.5 billion worth of gold. After processing pure gold, we have exported gold worth $7 billion. The net deficit is $5.5 billion.”
In the first six months of 2020, Turkey imported gold worth $11.5 billion, while in contrast, its exports amounted to some $3 billion, the Dönmez noted.
“We need to extract the gold that exists in our land. Just like America, Canada, Australia and other countries have done. In Turkey, we now follow the same procedures as developed countries in gold extraction.” Dönmez said.
