The Mineral Industry of Turkey in 2008
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2008 Minerals Yearbook TURKEY U.S. Department of the Interior September 2010 U.S. Geological Survey THE MINERAL INDUS T RY OF TURKEY By Philip M. Mobbs Turkey had a diverse mineral industry and was a leading export, import, refining, and sale of petroleum were licensed producer of barite, bentonite, boron minerals, chromite, feldspar, under and regulated by the Petroleum Market Law of kaolin, limestone, magnesite, marble, perlite, and pumice. 2003 (law No. 5015). The distribution, export, import, and Turkey also was a significant source of value-added processed transmission of natural gas were regulated by the Natural mineral commodities, such as cement, ceramics, ferrochromium, Gas Market Law of 2001 (law No. 4646), as amended by glass, and steel. The volume of hydrocarbons produced in law No. 5367 of 2005. The marketing of domestic and imported Turkey was small, but the country was a significant transit liquefied petroleum gases was regulated by the Liquefied corridor for crude oil and natural gas shipments (Papp, 2009, Petroleum Gases (LPG) Market Law of 2005 (law No. 5307). p. 17.25-17.26; World Steel Association, 2009; Angulo, 2010; Bolen, 2010; Cordier, 2010; Crangle, 2010; Kramer, 2010; Production Miller, 2010; van Oss, 2010; Virta, 2010). Most production data for 2008 are estimated (table 1). Minerals in the National Economy Significant increases in production in 2008 were noted for chromium, coke, gasoline, gold, lignite, and nitrogen The mining and quarrying sector accounted for about 0.80% (ammonia). Notable decreases in production in 2008 were of the real gross domestic product (GDP) (when calculated at posted for refined copper, ferrochromium, iron ore, strontium, 1998 producers’ prices) in 2008, which was slightly up from and several refined petroleum products. about 0.76% of the GDP in 2007. The construction sector accounted for 5.90% of the GDP in 2008 compared with 6.49% Structure of the Mineral Industry in 2007 (Türkiye İstatistik Kurumu, 2010b). The private sector dominated the country’s industrial minerals Government Policies and Programs and metals sectors. In 2008, 874 new mining and quarrying companies were established in Turkey, and 46 mining and Article 168 of the Constitution (1982) and the Mining Law quarrying companies were closed. Table 2 lists notable mineral of June 15, 1985 (Maden Kanunu, law No. 3213), declared commodity production and processing facilities (Türkiye that natural resources, such as minerals, belonged to the state İstatistik Kurumu, 2009). and were not considered to be part of the land where they were found. Law No. 5177 of 2004 (the new mining law, which Mineral Trade amended the 1985 mining law), the Regulation Concerning the Implementation of the Mining Law (which was issued in In 2008, total Turkish exports of goods were valued at about 2005), the Mining Activities Permitting Regulation of 2005, $132 billion compared with $107.2 billion in 2007. Of the total and the Law on Boron Minerals, Trona and Asphaltit Mines exports in 2008, iron and steel accounted for about $14.9 billion; and Exploitation of Nuclear Energy Raw Materials No. 3971 manufactured articles of iron and steel, $14.9 billion; mineral of February 19, 1994, also regulated mining activity in Turkey. fuels, $7.5 billion; jewelry and precious or semiprecious stones, The Government issued licenses to Turkish individuals or $5.3 billion; aluminum and aluminum articles, $1.8 billion; legal entities to explore for minerals or operate mines for a glass and glassware, $1 billion; building stone (crude and specific period of time. The Foreign Direct Investment Law processed), $813 million; borates and boron chemicals, more of June 2003 (law No. 4875) authorized foreign investors to than $500 million; chromium ore, $496 million; and copper establish companies in Turkey that could hold mining rights ore and concentrates, about $320 million (İstanbul Maden ve under the Mining Law. Metallar İhracatçi Birlikleri Genel Sekreterliği, undated; Türkiye Maden İşleri Genel Müdürlüğü [General Directorate of İstatistik Kurumu, 2010a, table 4). Mining Affairs] of the T.C. Enerji ve Tabii Kaynaklar Bakanlığı Total imports were valued at about $202 billion in 2008, [Ministry of Energy and Natural Resources] regulated the of which mineral fuels accounted for about $48.3 billion, and mining industry. T.C. Çevre ve Orman Bakanlığı [Ministry of iron and steel, about $23.2 billion. A significant percentage of Environment and Forestry] enforced the Environmental Law the iron and steel imports was steel scrap (Türkiye İstatistik of 1983 (law No. 2872) and the Regulation on Environmental Kurumu, 2010a, table 5). Impact Assessment of December 16, 2003. State-owned Eti Maden İşletmeleri Genel Müdürlüğü retained exclusive rights Commodity Review to explore for and develop boron deposits according to law No. 2840 of 1983. Metals Petroleum exploration and production were administered by the Ministry of Energy and Natural Resources under the Bauxite and Alumina.—Albuck Madencilik San. ve Tic. Petroleum Law of 1954 (law No. 6326). The distribution, A.Ş., which had begun mining diaspore at Mugla in 2007, Turkey—2008 56.1 started another mining operation in the Eskisehir area in 2008. Ticaret Limited ŞTI started up a 220,000-t/yr-capacity steel The company planned to ramp up production from the two plant in May (Orion Investment Menkul Değerler A.Ş., 2008; mines to about 300,000 metric tons per year (t/yr) (Albuck Rolmet Makina Pazarlama San.ve Tic. Ltd. ŞTI, 2008; Concast Madencilik San. ve Tic. A.Ş., 2009). A.G., undated). Copper, Gold, and Zinc.—Mining operations at the Kişladag In December, the U.S. International Trade Administration gold mine, which was owned by Eldorado Gold Corp. of revoked the antidumping duty that in 1997 had been imposed on Canada, were resumed in March 2008 after being suspended steel concrete-reinforcing bar (rebar) from Turkey. The effective in August 2007 owing to a court injunction related to litigation date of the revocation was March 28, 2008 (U.S. International concerning the mine’s environmental certificate. The litigation Trade Administration, 2009). remained under appeal at yearend. Despite the nearly 3-month Iron Ore.—In 2008, Hekimhan Madencilik İthalat İhracat suspension of operations at Kisladag, Tüprag Metal Madencilik San. ve Tic. A.Ş., which was a subsidiary of Kolin İnşaat Turizm San. ve Tic. A.Ş., which was a subsidiary of Eldorado, produced San. ve Tic. A.Ş., proposed to install a calcination plant that by about 4,200 kilograms of gold from the open pit mine. In June, 2011 would produce about 1 million metric tons per year (Mt/yr) Eldorado resumed work at the Efemcukuru underground gold of calcined siderite sintering dust from 2 Mt/yr of ore. Tests project, which was also subject to a lawsuit concerning the indicated that the iron content of siderite ore from Hekimhan’s mine’s environmental certificate. The decision by the Fourth iron ore mine near Deveci, Malatya Province, could be raised to Administrative Court to deny the litigation to cancel the 56% from 38% after calcination (Hekimhan Madencilik İthalat environmental certificate for Eldorado’s Efemcukuru project İhracat San. ve Tic. A.Ş., 2008). was appealed by the third-party litigant to the Sixth Department Nickel.—The dramatic decline in nickel prices during the last of High Administrative Court, which in turn denied the appeal in three quarters of 2008 resulted in the significant slump in nickel January 2009 (Eldorado Gold Corp., 2009, p. 19-21). exploration activity in Turkey. Aldridge Minerals suspended In 2008, Çayeli Bakır İşletmeleri A.Ş., which was a subsidiary work on its Murat Dag nickel laterite project and the joint of Inmet Mining Corp. of Canada, mined 1.1 million metric venture of Lydian International Ltd. and Newmont Overseas tons of ore from the Çayeli Mine to produce concentrates Exploration Ltd. decided to seek a partner to develop its containing 47,600 metric tons (t) of zinc and 32,700 t of Muratdag gold-nickel prospect (Aldridge Minerals Inc., 2009, copper. In March, an injunction resulted in yet another p. 3; London Metal Exchange Ltd., undated). suspension of the development work at the Cerattepe underground copper-zinc mine. In October, the operating Industrial Minerals licenses for the Cerattepe Mine that were held by Artvin Bakır İşletmeleri A.Ş., which was a subsidiary of Çayeli Bakır Boron.—In 2008, Eti Maden İşletmeleri Genel Müdürlüğü İşletmeleri A.Ş., were cancelled by the Rize Administrative expanded operations with the startup of a 45,000-t/yr capacity Court. The Turkish Ministry of Energy and Natural Resources expansion of the borax decahydrate plant as well as the startup (and co-defendant Inmet) appealed the decision to cancel the of a 5,000-t/yr-capacity boron oxide plant at Badirma and an licenses to the Turkish Administrative Supreme Court, Inmet anhydrous borax plant at Kirka (Eti Maden İşletmeleri Genel subsequently decided not to proceed with the Cerattepe project Müdürlüğü, 2009, p. 59-61). (Inmet Mining Corp., 2009, p. A13). Soda Ash.—Eti Soda Inc., which was a subsidiary of the Iron and Steel.—In November, Borçelik Çelik San. ve Tic. Ciner Group and Eti Maden, continued construction work on the A.Ş., which was a joint venture of ArcelorMittal and Borusan 1-Mt/yr-capacity soda ash plant at Beypazari. Initial production Holding A.Ş., started production from a 600,000-t/yr-capacity was scheduled to begin in early 2009, and the plant was cold-rolling line at the company’s facility near Gemlik. In 2008, expected to reach full production by mid-year. The plant also Ereğli Demir ve Çelik Fabrikalari T.A.Ş. (Erdemir) completed had the capacity to produce 100,000 t/yr of sodium bicarbonate the rehabilitation of blast furnace no. 1, and İskenderun Demir (Ciner Group, 2009; Eti Maden İşletmeleri Genel Müdürlüğü, ve Çelik A.Ş.