Despite the pandemic, mining Industry of Turkey continues its rapid development. In first of half 2020 Turkish mining industry affected from the lockdowns in other countries similar to other countries. As of the second half of the year, both mining exports and the mining production of the country was rapidly come back on track and end the year in line with the expectations.

Turkey started 2021 aiming reducing the bureaucratic process in mining projects. In line with this aim, the government institutes declared their plans to reduce delay on bureaucratic process. A series of new implementations put into effect.

  • Aiming to fasten the licensing process, the online mining portal, E-Maden was implemented.
  • Forestry ministry announced their intention to limit granting Forestry permit process to be limited with most 3 months.
  • Draft mining law, aiming the ease bureaucratic process in mining industry is about to completed and is expected to send to assembly within this year.
  • New Economy Reforms were introduced by President Recep Tayyip Erdoğan. The reforms include to fortify the healthy investment environment in exploration and production of mining, petroleum, natural gas industries and increase investment security.
  • Having various mining licenses, Turkish Wealth Fund (TWF) announced their aim on investing $15 billion to the industries including mining, within 5 years.
  • Mining’s share in the 2021 Investment Plan of Turkey increased by %306.
  • The Second biggest budgeted project to be realized by Turkey and European Union, will be on rare earth elements.
  • The government emphasized the importance of the producing end products. On this scope one of the projects to be realized will be to build the country’s first zinc smelter.

While government working to ease the bureaucratic process in mining, mining producers in Turkey continue their projects trying to reduce the effects of the pandemic to minimum. Considering all commodities, gold has a special importance for Turkey. On this scope, importing 160 tons and producing 42 tons of gold in 2020, both the government and the gold miners in Turkey works meticulously to reduce gold imports and increase gold production.

  • Both the government and the gold miners in Turkey set their aim to break country’s gold production record in 2021.
  • Reaching 100 tonnes annual gold production capacity within 5 years is also included in both parties’ mid-term plans. In line with its aim, opportunities to increase gold production capacity of the country will be considered.

New gold projects also have special importance to realize the plan. Along with the 18 gold mine already in production in Turkey, new projects are also developing rapidly.

  • Söğüt Gold Mine which has approximately $6 billion worth gold content, is being developed rapidly by Gübretaş AŞ and the mine is aimed to start production in 2 year. It is recently announced that the project got the 135 million dollars credit facility from Ziraat Bankası AŞ.
  • Koza Gold’s Mollakara project is also expected to complete in May,2021. Estimated Investment for the project is 300 million dollars. Koza Gold announced that they started feasibility studies on Karapınar project.
  • Alamos Gold waits all requirements to meet in order to continue its operation on Kirazlı Project.

Along with the new projects, the companies already in production also announced that they have slightly affected from the pandemic as a result of their effort. They all met their annual production guidance in 2020 and most of them increased production guidance for 2021.

  • Producing 106.068 Ounces of Gold in 2020 at Öksüt Gold Mine, Centerra Gold shared it 2021 outlook as 90.000 -110.000 ounces of gold. The company also aims to further increase the production capacity in 2022 and 2023 to 210.000 – 240.000 and 200.000 – 220.000 ounces, respectively. To realize the increase, the company plans to complete development projects in Öksüt project at the end of 2021.
  • SSR Mining produced 327.000 ounces gold at the Çöpler Gold Mine. The 2021 production guidance of the mine was shared as 310.000 – 340.000 gold.
  • Koza Gold’s total gold production in 2020 was recorded as 258.678 ounces.
  • Eldorado Gold shared 2020 gold production in its Kışladağ and Efemçukuru Gold Mines. While, 226.000 ounces gold produced at Kışladağ Gold Mine, 100.000 ounces of gold production was realized in Efemçukuru Gold Mine.
  • Ariana Resources produced 18,645 ounces of gold in 2020. The company’s 2021 gold production guidance for Kızıltepe Gold Mine was shared as 9,000 ounces of gold.

In 2020 the mining industry of Turkey, witnessed serious merger and acquisition agreements.

  • Ariana, Özaltın ve Proccea signed an JV agreement. According to the agreement, Özaltın Holding acquired the majority shares of the Zenit Madencilik.
  • Altınyağ Madencilik has won the tender organized by TMSF and acquired the right to operate Mollakara Coal Operations.
  • Fernas Construction acquired the %100 shares of the Pabalk Mining which is a perlite producer.

In addition to local mining business in Turkey, having a positive outlook, Turkish companies with mining production and infrastructure experience, also shared their interest in acquisition or partnership opportunities in abroad mining projects.

  • Eti Copper, affiliated to Cengiz Holding, announced that it seeks cooperation opportunities with AzerGold which is gold mining company affiliated to Azerbaijan government.
  • Demir Export, affiliated to one of the biggest business conglomerates of Turkey, Koç Holding, signed a memorandum of interest with Conroy Gold for their projects in Ireland.
  • Eti Chrome affiliated to Yıldırım Holding which has an important place in global chrome and ferrochrome production, shared its interest to diverse its products in mining business by acquiring or investing new projects.
  • General Directorate of Mineral Research and Exploration of Turkey, affiliated to the government, has started exploration works in Uzbekistan and signed a mining exploration agreement with Kyrgyzstan.

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