MIGEM clarified unapprehended issues about Mining Zone Law amendment which caused confusion in mining industry. Some questions of sector and answers of MİGEM were as follows;
The response given by MİGEM to the question of whether this law will affect license security is as follows: “Mine Zones are announced due to environmental effects of production on adjoining or nearby mine fields, effects on urbanization, safety of workers and businesses, efficient operation of reserves and similar ones. Since production activities cannot be carried out in these areas due to reasons mentioned above, to provide opportunity to operate in mining site with this law, or mining license law was secured by foreseeing transfer of mining activities to areas where they could be provided.”
In determined area, the company owning 51% reserve in total, will also dominate other licenses which are not included into cooperation, small company cannot operate, this situation will be against equality principle and law, MİGEM answered this question as follows; “ In law, there is provision stating that six months will be given to every company with legal entity, for license owners and everybody becomes partners for remained reserve in terms of equity in partnership shares, even if they have small reserve, they may have place in this partnership, in case of declining partnership, licenses will be cancelled. This situation does not give priority to anyone, partnership share is established in accordance with reserve criteria. Besides, it is not considered possible that small license owners can operate alone in terms of business safety.”
MİGEM who emphasizes that with the structure of Turkish Company Law that cannot solve the problem of domination of majority on minority, it is a problem attracting attention about how to keep doing their operation under the roof of the same company, operations in mining zone will be done by company with legal entity, underlined that it is not a matter that license owners can operate separately and partnership is not a matter according to reserve rate.
The activities in the mining area will be carried out by the company with the legal entity to be established. It is not the case that license holders operate separately, but they have partnerships according to reserve ratio. These companies, which were competitors before, will gain more and win together with the power coming from partnership with win-win principle.
MİGEM, who responds questions about how the process will be carried out if establishment process cannot be completed within 6 months due to restrictions on licenses or any other obstacles, stated that a period of six months is reasonable to establish a company in our country, restrictions such as distraint and mortgages on combined licenses, will be transferred to new company.
For the question whether it will be only investment cost to cover merger Agreement, MİGEM answered as “The decision of Mining Zone was brought in favor of the registration holders, since there was no possibility of operating on a stand-alone basis. The return of investment funds of those who do not join the union is also a last and equitable process to protect their rights.”
Please visit for some other questions and answers: https://goo.gl/DCviB3
