Mineral Exploration: What, Where • and Why in Turkey

Mining & Earth Sciences Magazine

01 September 2011 | Vol 1 | Number 1 | www.madencilik-turkiye.com

• Mineral Exploration: What, Where and Why in Turkey • Turkey: Europe’s Largest Gold Producer • Mining Sector In The World and In Turkey

contents

Mining Turkey is published biannually by Mayeb Madencilik ve Yer Bilimleri Basım Yayın Dağıtım Ltd. 2...... FROM THE EDITOR 1042. Cd. 1335. Sk. Vadi Köşk Apt. No: 6/8 A. Öveçler / ANKARA / TURKEY Tel : +90 (312) 482 18 60 4...... NEWS Fax : +90 (312) 482 18 61 [email protected] www.madencilik-turkiye.com 12...... MINERAL EXPLORATION: WHAT, WHERE AND

General Coordinator Onur Aydın WHY IN TURKEY by Özcan Yiğit [email protected] Editor - International Relations O. Çağım Tuğ 20...... FLSMIDTH company profile [email protected] News Ceren Kılıç 21...... CHESSER RESOURCES company profile [email protected] Graphic Design M. Anıl Tuğ 22...... TURKEY: EUROPE’S LARGEST GOLD PRODUCER [email protected] Merve Mallı [email protected] by Muhterem Köse Web Technologies Bilgin B. Yılmaz [email protected] 26...... MAXWELL GEOSERVICES company profile Legal Adviser Av. Evrim İnal [email protected] 28...... MINING SECTOR IN THE WORLD AND IN Academical Advisers Assoc. Prof. C. Okay Aksoy Assoc. Prof. Ali Sarıışık TURKEY by MSBK Assoc. Prof. Erol Kaya Assoc. Prof. Hakan Başarır Assoc. Prof. M. Emin Candansayar 32...... MINING COMPANIES IN TURKEY’S TOP 500 Assoc. Prof. Talip Güngör Assist. Prof. Melih Geniş Assist. Prof. Melih Iphar INDUSTRIAL ENTERPRISES OF 2010 Assist. Prof. Nuray Demirel

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01 September 2011 1 Editor www.madencilik-turkiye.com

1979 to 2011. Prehistoric to 3rd millenium. A short review of Turkey through time. O. Çağım Tuğ | [email protected]

22nd World Mining Congress which will the civilizations of Anatolia shape the fu- take a look at Turkey’s mineral explora- be held between 11 - 16 September ture. Through 2000 years till now, Anatolia tion and geological framework, written 2011, will be the second experience for owned by various important empires, has by Özcan Yiğit, Associate Professor of İstanbul and Turkey in terms of WMC. become a bridge for eastern and west- Economic Geology at Çanakkale Onsekiz After the 10th World Mining Congress in ern cultures. Today, Turkey starts to recall Mart University, Turkey; to understand İstanbul with the topic “Mining and Min- Anatolia’s role in the modern civilisation the gold mining industry in Turkey writ- eral in the Service of Mankind” in 1979, and with the help of record high metal ten by Muhterem Köse, Gold Miner’s As- this new Congress’ topic will be “Innova- prices, restarts to place special emphasis sociation; to have a brief outlook to the tions and Challenges in Mining”. Even on its mining sector and production. world and Turkey’s mining industry with with these two topics, it’s possible to see actual numbers written by Association of the progress of mining business in the Turkey has always been a strategic cen- Mining Sector Presidents’ Council. Turkish world through “need” to “essential” or “to ter for different companies on different mining news and company profiles are accepted” to “to developped”. industries due to its geographical loca- also in the content list. tion between Europe - Balkans - Asia and Anatolia, the cradle of civilizations, start- Middle East. Being a peninsula Turkey has Mining Turkey, English version of Maden- ed to use copper circa 9000 years BC. an important advantage to transport the cilik Türkiye, will continue to inform world Around Çayönü Hill - Diyarbakır, a num- commodity overseas through three seas mining industry about Turkey’s mining ber of copper beads, awl fragments aged surrounding it: Mediterranean, Egean sector regularly. Madencilik Türkiye Mag- 9000 - 8200 BC were discovered. The old- and Black Sea. Cultural motives of the azine aims to inform Turkish mining sec- est underground mine in Anatolia was region including hospitality and being tor about latest news and new technolo- discovered at Kozlu, Tokat, aged 5000 open minded help the foreigners to build gies since September 2009. Madencilik years BC. First mining tool, a miner shovel their business and to live. Goverment’s Türkiye became a brand in the Turkish was discovered in a copper mine at Mur- recent policies on mining sector give full mining industry at short notice wih its gul Deposit, Borçka, Artvin and was dated support to exploration and production. online bookstore, short courses and Bul- to 1st millenium BC. After flintstone and It won’t be wrong to say that Turkey has a letin of Mineral Rights & Concessions. obsidian, rich metal deposits of Anatolia huge mineral potential due to its geologi- also gave numereous different opportu- cal features and it is well known that with Please get in touch with us to have a hard nities to the mankind to hunt and defend, the early exploration data, Turkey knows / soft copy, to send articles or to give ad- to feed and to make tools. The amount of only 100 meters deep of the surface. Even vertisements. resources, capability of mining and creat- there is no world class deposit in Turkey, ing equipments were the main elements the potential is expanding and the num- And now, please enjoy the congress! to survive and to strenghten the tribes ber of projects increase every year. and civilisations. The first use of silver and gold coins as money by Lydians, made In this issue, you will have the chance to

Magazine “The Brand of Turkish Mining” www.madencilik-turkiye.com

News www.madencilik-turkiye.com New steps on Turkey’s boron production General Directorate of Mineral Research posit happens to be in Turkey, followed and Exploration (MTA) finalised the main by Russia 8 % and by USA 7 %. ETİ sup- part of the drilling programme which plies 40 % of the world boron demands aims to explore new boron deposits. after Rio Tinto Borax. Eti Maden planned As a province which reserves most of for the production of 3.9 million tons of Turkey’s boron deposits, Kütahya hosts raw ore in 2010 and realized 134 % of the the project which is a joint venture of program with 4.5 million tons of produc- Eti Mine Works General Management tion. The production of boron chemicals (ETİ) and MTA, both public institutions. and equivalent products was 1 million The drilling programme includes 16 drill tons in 2009. holes at Emet, Hisarcık and Çavdarhisar district. The process is ended in 13 holes ETİ has also announced its new technol- and the samples will be analysed at ETİ’s ogy, “Near Infrared Optical Separator” to laboratories. The drilling programme has use on residual waste material after the reached total 300 meters so far. production of colemanite. A NIR Separa- tor with the capacity of 10 t/h is built at Tincal, colemanite and ulexite are the Bigadiç Boron Plant and it’s planned to primary boron minerals that Turkey pro- create an income of 35 million USD, with duce boron. 72 % of the world boron de- the enrichment capacity of 88 %. Banded Clay - Tincal in the ore

Capacity Total Reserve Distribution Country Country (Thousand Tonne) (Thousand Tonnes B2O3) (%)

Turkey 1,785 Turkey 864,500 72 Russia 100,000 8 USA 1,560 USA 80,000 7 China 545 China 47,000 4 Chile 415 Chile 41,000 3

Argentina 196 Peru 22,000 2

Russia 151 Bolivia 19,000 2 Iran 16,200 1 Bolivia 78 Argentina 9,000 1 Peru 75 Serbia 1,000 0 India 48 Kazakhstan Unknown -

World Total 4,853 Total 1,199,700 100 Tincal Ore Production Capacities of Boron - Source: Eti Mine World Boron Reserves - Source: Eti Mine

Kırka Boron Plant

4 01 September 2011

Kefi sold Artvin Project AIM quoted gold and copper explora- known as Kızılçukur), Muratdağ and Yatık we are also evaluating the Tiouit Gold- tion company Kefi Minerals has an- West projects in western Turkey to Ari- Copper Mine in Morocco.” nounced that it has sold the company’s ana Resources plc. Our policy has always Artvin Project to a Turkish mining com- been to continually rapidly assess and, pany, in August. 15 exploration licences where appropriate, turnover projects locating in the Eastern Pontide Belt in in our exploration portfolio and as such northeastern Turkey, covering total 254 we believe our cost-efficient approach km2 has been sold for an initial cash pay- increases the probability that Kefi Miner- ment 100,000 USD and 1 % net smelter als will make a major gold and/or copper royalty on all future mineral production discovery. We continue to evaluate op- from the licences. Kefi Minerals’ Manag- portunities in Turkey and in the region. ing Director Jeff Rayner states that: “This Additionally, Kefi Minerals has recently sale marks the latest step in our strategy began exploring our Selib North Project and follows on from the earlier sale in which is the first exploration licence we June of the Company’s Derinin Tepe (also have been granted in Saudi Arabia while Kefi Minerals’ Projects Turkpower and its new iron ore share TurkPower Corporation announces the TurkPower President Ryan E. Hart says ibility for future mining ventures and purchase of 50.09 % working interest in “This is a great day and milestone for acquisitions in the booming mining in- Maksor Madencilik, the 100 % owner of TurkPower and its investors. With the dustry of Turkey.” the Kuluncak Iron Ore Project in Turkey, purchase of controlling interest in the for a total purchase price of 15 million operational Kuluncak iron ore mine, Turkpower Corportation is a Turkish - EUR and 73 million shares of Turkpower. TurkPower is taking its first step toward American consulting and service opera- The payment is scheduled for 6 pay- its goal of becoming a leading junior tions firm with a focus on Turkish energy ments, starts with the down payment of mining company in Turkey. The purchase and mining services. Kuluncak Iron Ore 1 million EUR which was made in 2010, adds a tangible and operational asset to Mine is an open-pit mine which has esti- ends with the final payment and share is- the Company’s balance sheet and leads mated reserves of about 21 million met- suance due December 28th, 2011. to expected profitability in 2011. It also ric tons according to a two year feasibil- gives the Company leverage and cred- ity study.

Drilling Programme Update By Teknomining Dublin headquartered mining and ex- ing to IP / Resistivity an Magnetic Report price of nickel provides Teknomining ploration company Teknomining Plc of CFT Engineering. Michael Holden, CEO with an extremely valuable exploration announced an update on drilling pro- of Teknomining says that besides com- asset. The Company has commissioned gramme reveals high levels of com- mercial grades of nickel, sample results CFT Engineering to supervise the drill- mercial grades of nickel at its license in shows a significant presence of Cobalt, ing programme on the which covers an Diyarbakır, Turkey. Independent labora- Copper, Chromium, Iron, Magnesium, area of 3.65 km2. Independent laboratory tory testing of the sample cores reveals Manganese, Titanium, and Zinc. High testing of sample cores has been carried minimum inferred resources of nickel at nickel presence in the sample results out by OMAC laboratories. approximately 5 million tonnes, accord- coupled with the strength of the current

6 01 September 2011

Kaymaz will be the 4th gold mine of Koza Gold soon Koza Gold, will start its test produc- of silver. After the end of the mine life, due to a strong public pression after an tion of gold and silver from it’s 4th gold Koza will use the plants strategic posi- ineffective PR work. Tüprag Metal Mining mine, 3rd processing plant at Kaymaz, tion in Turkey to produce gold from dif- has completed total of 204 drilling in the Eskişehir. Koza plans to start production ferent projects. region and total resources were calcu- as soon as possible after the test produc- lated to be 912,000 tones. Koza Gold Op- tion from its 70 million USD investment. First exploration of Kaymaz Prospect date erations has completed new sampling, The project will provide employment to back to 1970’s. At 1995, Eurogold bought geophysics and drilling planning in the 250 people and the projected life of the the license and improved the project. region. The results of drilling have shown mine is 6 years. During its life, Koza will They sold the license to Tüprag Metal following reserves and the grades. produce 15 tonnes of gold and 11 tonnes Mining (subsidiary of Eldorado Gold)

Tonnes Gold (g/t) Silver (g/t)

High Grade (> 3 gr / t) 679,530 9.19 7.24

Low Grade (< 3 gr / t) 135,020 1.72 2.29

Total 814,550 7.95 6.42 Imported products planned to be produced inland Turkey plans to explore and produce termediary services expenses, Turkey can Total Total Mining Mining the raw materials and minerals that are clear the 1 billion USD current account Import Product Im- Products to Years imported. A mine map which has the in- deficit. Total added value of the project (Billion port (Billion All Imported USD) USD) Comodity (%) formation about mines and their feasibil- is much bigger.” said Çağlayan. 2000 54,502 901 1.653 ity informations, has been created with the cooperation of Ministry of Economy The major commodity that Turkey import 2001 41,399 500 1.209 and Ministry of Energy and Natural Re- are coal, copper, aluminium, gold and 2002 51,554 999 1.937 sources. At his visit to Korea, Minister of iron, excluding oil and gas. 95 % of gold, 2003 69,340 1,265 1.810 Economy Zafer Çağlayan stated that, in 80 % of copper, 80 % of aluminium, 50 % 2004 97,540 1,615 1.656 the light of this information, a mining of iron and 20 % of coal from the Turkey’s 2005 116,774 2,181 1.868 rush will be started to close the current total need is imported. It’s unquestion- 2006 139,576 2,814 2.016 account deficit of the country . “As Turkey able that these raw materials are crucial 2007 170,062 3,530 2.076 is the biggest importer of scrap iron and for the industry and the production. 2008 201,964 4,541 2.248 steel, 9 billion USD is spent every year to Imported Mining Products Excluding Oil and Gas 2009 140,926 4,247 3.014 import these metals. Even only by the in- Source: Turkish Statistical Institute (TÜİK)

8 01 September 2011 Ariana updates its Kızılçukur and Kızıltepe Projects Ariana Resources announced that the potentially mineralised structures of ar- discovered at Kızıltepe, the Managing geophysical programme which was de- eas previously drill tested, continues at Director of Ariana Resources Dr. Kerim signed to determine the sub-surface depth and along strike. The drilling pro- Şener stated: “The identification of an extent of the known vein outcrops and gramme for the prospect will be planned additional high grade vein system at the their connectivity, generate drill targets to gain a further understanding of the 2 Kızıltepe deposit further underpins the and subsequently expand the resource km of mineralised quartz veins contain- high prospectivity of the Red Rabbit Proj- for the wider Red Rabbit Gold Project, ing high-grade gold and silver. Kızılçukur ect area, and demonstrates the potential was completed over the Kızılçukur vein Prospect is located 21 km north-east of for increases to our current JORC compli- system and high priority drill targets Kızıltepe. ant resource of 448,000 oz Au equivalent. defined on high resistivity anomalies. These new vein discoveries represent a The programme demonstrated that the For the new vein system which was key development in the evolution of the Red Rabbit Project, as we simultaneously advance towards production in 2012 and conduct exploration activities across the project area to feed into the current resource, extending the mine life and further improving the economic fundamen- tals of the project.”

Fırst Gold Poured From Red Rabbit Project After Test Production Tüprag granted to start production at Efemçukuru and granted permits of the expantion of Kışladağ Tüprag Metal Mining (Turkish subsidiary pit mine after the permits that they The company’s CEO, Paul Wright stated of Eldorado Gold) announced the af- gained for the expansion project under- his appreciation for the permissions re- firmative results of the permissions for taken in 2010. sulted on time and without any defer- the two project’s Environmental Impact ment for the Efemçukuru. As the other Assessment (EIA). Kışladağ Gold Mine Efemçukuru Mine, which is the second application for the expansion of the which has started its production in 2006 gold mine for Tüprag, is an underground project Kışladağ comes to a conclusion, is the milestone for Eldorado in Turkey. operation. The mine gave start to pro- the amount of material processed in 12.5 million tonnes of ore will be placed duction in June and planned to produce Kışladağ Mine will be increased by 25 % on the leach pad annualy from the open 70,000 - 80,000 ounces of gold in 2011. annually.

Kışladağ Gold Mine At Night Entrance of Efemçukuru Gold Mine

Tender by TTK to generate electricity from methane gas Turkish Hard Coal Enterprises (TTK) is is- will submit their sealed bid proposals at ergy by methane gas derived from solid suing invitations for tender to generate December 21st, 2011 2:00 pm and the waste efficiently, which is known as an electricity by the methane gas released proposals will be evaluated at the same important green technology. during production from the TTK owned day at 3:00 pm by the Head of Purchas- coal mines and exploration of methane ing Department. gas in some licenses owned by TTK. The subject of the tender is going to involve Besides its economical value, generating all the works related to generate electric- electricity by the aspirated methane gas ity for 30 years royalty. Tender guarantee from the coal mines plays an important fee is determined as 100,000 USD. The role for improving the safety of the un- companies which get their compliance derground mines. Most of the cities in Karadon Coal Mine certificate before November 23rd, 2011, many developed countries generates en-

10 01 September 2011

Article www.madencilik-turkiye.com Mineral Exploration: What, Where and Why in Turkey

Mineral exploration in the last decades especially gold, are the new paradigm. of the development of the TMB within revealed that Turkey forms a prime sec- The country was the leading producer the Alpine-Himalayan orogenic system tor within the Tethyan Metallogenic Belt of only chromium with modest copper, formed by the convergence of the Afri- (TMB) with proven metallogenic creden- lead, zinc, silver and antimony produc- can, Arabian, and Indian plates and their tials, though changes in the mining law tion, now it has become a major gold collision with Eurasia in the area of the triggered foreign investment since mid producer on the fringes of Europe. Yearly former Tethyan oceans. TMB extends 1980’s. Pro-mining investment climate gold production in 2010 was more than from the western Mediterranean via the 0.5 million ounces and continues to in- Alps to southeastern Europe, through Metallogeny in Turkey crease with several new gold mines. Gold Turkey, the Lesser Caucasus, Iran, and mining, except as by-product, started the Himalayas to China. Mineral depos- is mainly a result of with Ovacık in 2001 and continued with its and prospects of Turkey were mostly the development Kışladağ in 2006 and others including formed during the closure of Neotethys of the Tethyan Küçükdere, Mastra, Çöpler, Kaymaz, Gicik, sensu lato. Çukuralan, Efemçurukuru, and several Metallogenic Belt more to come. A fourfold division of Turkey separates the country into east-trending tectonic along with low-production costs and This synopsis metallogenic assessment belts: from north to south, Pontides, Ana- well-established infrastructure, as well as of Turkey is based on the author’s Turkish tolides, Taurides, and Border Folds (Fig. a bull metal market played a critical role Mineral Deposit Database (TMDD). TMDD 1. inset). This convention is still the sim- in attracting exploration companies to is a comprehensive GIS database contain- plest and most widely accepted tectonic reveal the metal endowment of a long- ing more than 11,000 deposits and pros- division of Turkey, though it has been time neglected favorable geologic set- pects and includes metallic, industrial, extensively modified into many differ- ting in this large underexplored country. and energy raw materials comprising ent terranes (Fig. 1). The most prominent Industrial minerals, especially boron, more than 20 different databases. tectonic features of the country are the trona, clays and perlites as well as dimen- İzmir - Ankara - Erzincan suture dividing sion stones, have been long-time appre- GEOLOGICAL FRAMEWORK the Pontides in the north from the Ana- ciated commodities; metallic minerals, Metallogeny in Turkey is mainly a result tolide - Tauride platform to the south and

A View of Mediterranean Resources’ Çevreli Project

12 01 September 2011 Mineral Exploration: What, Where and Why in Turkey

the Bitlis Suture marking the northern volcanic rocks cropping out in north- a wide spectrum of mineral deposits, dif- edge of the Arabian plate in southeast- eastern Turkey. Ophiolitic rocks were ob- ferent in types, time and space, related ern Turkey. In a broad sense, these two ducted mostly in the Upper Cretaceous. to subduction, collision, post-collision sutures divide Turkey into three geologi- Cenozoic rocks that cover large areas and rifting processes (Fig. 1). Among cally distinct domains (Fig. 1). and obscure older sequences are mainly many different mineral deposits, Au-Ag- characterized by subaerial volcanic and Cu-Mo-Pb-Zn bearing systems are the The oldest rocks forming the crystalline shallow-water sedimentary successions focus of interest for most mineral explo- basement of Turkey are characterized by which host world-class borate deposits. ration companies, i.e., porphyry Au-Cu- metamorphic massifs, e.g., the Menderes Intrusive rocks, exposed extensively in Mo, skarn, epithermal Au-Ag, volcanic- Massif in western Turkey. Metamorphic northwestern, central, and northeast- associated massive sulfides (VMS), and facies range from greenschist and am- ern Turkey (Fig. 1), are primarily granitic, Mississippi Valley types (MVT). In addi- phibolite facies to eclogite and granulite granodioritic, and syenitic compositions, tion to these, current interest in lateritic facies and range in age from Precam- whereas gabbroic rocks are mostly as- Ni-Co is high, especially after the Çaldağ brian to Oligocene. Multiple phases of sociated with ophiolitic assemblages. heap-leach operation, and there is rising metamorphism are commonplace in Available scattered radiometric ages interest in sedimentary-rock hosted Cu many of the massifs. Paleozoic rocks are from intrusive rocks indicate two broad in central Turkey. Changes in the mining typically non-metamorphosed sedimen- age ranges of pre-Middle Jurassic and regime also triggered sandstone-hosted tary rocks, exposed mainly in the north- Late Cretaceous to Miocene. Subaerial uranium exploration by foreign compa- western, southeastern, and southern to submarine volcanic rocks range from nies. Podiform chromium deposits as well parts of the country. A Paleozoic rock Upper Cretaceous to Cenozoic in age, as karst- and lateritic bauxite deposits of succession hosts the country’s largest mostly Neogene, with minor Jurassic and the country have not attracted much hard coal deposits around Zonguldak. Lower Cretaceous examples. foreign investment into the country yet. Mesozoic rocks consist of mainly lime- However, some of the iron deposits, sup- stones, volcanic rocks, flysch sequences, TYPES, STYLES AND DISTRIBUTION OF MIN- porting the large steel industry of the and ophiolitic assemblages. Triassic and ERAL DEPOSITS country, have started to attract foreign Jurassic rocks have limited exposures, in Diversity in the geologic and tectonic investment recently. contrast to Upper Cretaceous submarine setting makes the country favorable for

01 September 2011 13 Beypazarı Trona Bed owned by Eti Soda

Porphyry Cu-Au-Mo deposits and pros- Halilağa porphyry Cu-Au deposit in the and Karakartal in east-central Turkey and pects form three-roughly east-trending Biga Peninsula in northwestern Turkey is Muratdere, Sarıçayıryayla, and Tepeoba belts in Turkey, i.e., Pontides, Anatolides a new discovery with ongoing definition in western Turkey. and Border Folds, and are mainly asso- drilling. Halilağa will probably be one of ciated with Late Cretaceous to Miocene the largest porphyry Cu-Au systems in Numerous skarn deposits distributed granitoids of both island and continen- Turkey with multi-million ounces of gold throughout Turkey follow the general tal arc setting. Known porphyry depos- and a couple Blbs of copper. Other por- trend of the porphyry belts. Most of the its and prospects are clustered in four phyry systems with significant resources known deposits do not have sufficient major districts within these belts, which include Güzelyayla, Gümüşhane (=Ar- tonnage to form an economical orebody, are northeastern, east-central, western dala), Balcılı and Ulutaş in northeastern except in Fe skarns, e.g., Divriği [133.8 Mt and northwestern Turkey (Fig. 1). Recent Turkey, Bakırçay in northern Turkey, Der- @ 56 % Fe and 0.5 % Cu] in east-central exploration efforts generated new pros- eköy in northwestern Turkey, Cevizlidere Turkey, and Ayazmant and Şamlı in pects outside of these clusters as well, e.g., Konya area in south-central Turkey. Notwithstanding many porphyry Cu-Au- Mo systems with known resources, the only economical porphyry deposits are located within the Anatolides porphyry belt, e.g., Kışladağ and Çöpler gold deposits. Eocene to Miocene age rocks are the causative intrusions for porphyry gold mineralization. Majority of the porphyry systems lack a well developed supergene profile, i.e., enriched zones and/or oxidized leach cap. Kışladağ porphyry in western Turkey with current reserves of 10.2 Moz gold reserves and 16.5 Moz total gold resources including reserves is the largest gold deposit in Turkey. Çöpler porphyry with 4.6 Moz gold reserves and 6 Moz gold resources is the second largest porphyry deposit. Construction Phase of Çöpler Gold Mine

14 01 September 2011 western Turkey. Most of the Fe-Cu, Pb-Zn, W or Mo skarns were poorly appreciated, but recent studies showed that they may be related to porphyry or iron oxide copper gold (IOCG) type mineralization, e.g., skarns in Çöpler and Ke- ban districts in east-central Turkey, Bursa - Kütahya district in western Turkey and Dereköy district in northwestern Turkey, and IOCG systems in Hasançelebi [685 Mt @ 19 % Fe] and Divriği districts in east-central Turkey and Şamlı and Ayazmant in western Turkey. Uludağ [16.5 Mt @ 0.44 %

WO3] is one of the economical W skarn deposit in western Turkey.

Epithermal gold deposits and prospects are mainly ex- Yusufeli Gold Property - North Eastern Turkey plored for Au-Ag and base metal endowments in Turkey, 12 km mineralized trend - 100 % owned by Mediterranean but some Hg-Sb bearing epithermal systems are also im- Four project areas with almost 100 sq km under licence portant, e.g., Sızma - Konya Hg district and Ivrindi Sb-Au with four operating licences, three in conversion process district. Gümüşköy in Kütahya is a Ag-only mine in Turkey, to operating license and seven exploration licences and has reserves of 21.5 Mt at 178 g/t Ag, containing ap- • proximately 123 Moz. Epithermal systems are concentrated Tac & Corak - Advanced Stage Projects in two regions, namely northeastern and western Turkey. Over 2.5 M oz Au Eq. resource - 1.8 M oz capped gold Epithermal systems in northeastern Turkey are spatially and Preliminary assessment completed June 2011 genetically related to Late Cretaceous to Eocene submarine and Environmental Impact Assessment application to subaerial calc-alkaline volcanic rocks, while Eocene to planned in 2011 Miocene subaerial volcanic rocks form the main host lithol- • ogies in western Turkey (Fig. 1). All styles of epithermal sys- Celtik & Cevreli - Exploration Stage Projects tems are present in Turkey. Some of the epithermal depos- Celtik Discovery - 18.5 m of 6.51 g/t Au & 0.9 % Cu and its with extensive argillic alteration zones in western Turkey from the surface 20 m 1.62 ppm Au Cevreli Project - 39.5 are also exploited for industrial minerals such as clays and g/t Au in rock samples and 1,745 ppb in soil samples silica. High-sulfidation (HS) epithermal systems are mainly • concentrated in the Biga Peninsula in northwestern Turkey, Less than 15 % of the Yusufeli property explored to date i.e., Ağı Dağı and Kirazlı, while classical examples of low-sul- Tac & Corak Deposits - Open for expansion fidation (LS) systems occur in Ovacık in western Turkey and Celtik & Cevreli Projects - Strong discovery potential Küçükdere in the Biga Peninsula. Intermediate-sulfidation Cintat Valley - Exploration target (IS) style epithermal deposits and prospects are not well recognized or characterized in many areas.

Ağı Dağı and Kirazlı in the Biga Peninsula with 1.4 Moz and 0.49 Moz gold resources respectively, not including the

Contact Christopher Ecclestone, President/CEO + 604 669 3397 www.medresources.ca MNR - TSX and MHM1 - Frankfurt Akdeniz Resources Madencilik A.Ş. Nursel Atar, Vice chairman of the board of directors [email protected] 0312 426 30 40 Mineralised Core Sample from Çorak Project owned by Mediterranean Res. You can find more detailed information about Yusufeli Project in the september issue of Madencilik Türkiye Magazine 42°N

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0 100 200 kilometers Deposit Types 36°N Porphyry Au-Cu-Mo 26°E Epithermal Au-Ag/Cu-Pb-Zn/Hg-Sb 42°E VMS-Kuroko/Cyprus Cu-Pb-Zn/Au-Ag 34°E 38°E Skarn Fe-Cu-Pb-Zn-W-Mo-Au P O N T I D E S Carbonate-hosted Pb-Zn Carbonate-hosted barite-Pb EXPLANATION A N A T O L I D E S T A U R I D E S Podiform Cr Lithology Karst-type and lateritic bauxite BORDER FOLDS Submarine Volcanic Rocks Acidic to Intermediate Intrusives 0 200 Orogenic Au - listwanite hosted Mesozoic to Miocene Carbonate Rocks including recrystallized Limestones Eocene kilometers Sediment-hosted Cu [Mainly Cenozoic] Lateritic Fe Jurassic-Creataceous [Mainly]-Jurassic Lateritic Ni-Co Upper Cretaceous-Eocene Ophiolite and Ophiolitic Melanges Triassic-Jurassic Structure Iron Oxide Cu-Au Mainly Jurassic-Cretaceous Mesozoic Placer Au/U-Th Upper Cretaceous Fault Detachment-fault related Au Jurassic-Cretaceous Evaporitic Sedimentary Rocks Paleozoic-Mesozoic [Mainly Triassic] Strike-Slip Fault Normal Fault Carlin-type Au Miocene Permo-Triassic Thrust Fault Manganese-hosted Au Subaerial Volcanic Rocks Oligo-Miocene Permo-Carboniferous Probable Fault Distal-disseminated Au-Ag Axial Trace of Anticline Sandstone-hosted U Quaternary Metamorphic Rocks Devonian Axial Trace of Syncline Shear-zone hosted Cu Plio-Quaternary Pre-Mesozoic Ordovician-Silurian-Devonian-Carboniferous Extensional Fissures Localizing Volcanoes Volcanogenic U Sutures Volcanogenic Mn Cenozoic [Mainly Neogene] Paleozoic Thrust belts - teeth on the upper plate Fig. 1

16 01 September 2011 Fig. 1. Distribution of mineral deposits and prospects of Turkey with emphasis on host-rock lithology, pa- 42°N leo- and neo-tectonic setting, inset showing classical four-fold tectonic division of Turkey.

40°N

38°N

01 September 2011 17 newly discovered Çamyurt zone, and Taç prospects with significant gold resources mon by-product Au, but some deposits and Çorak in northeastern Turkey with include Altıntepe and Dereköy in north- contain gold-rich orebodies with epith- 1.1 Moz and 0.76 Moz gold respectively eastern Turkey. ermal affinities, e.g., Cerattepe in north- are examples of HS epithermal deposits. eastern Turkey. Ağı Dağı and Kirazlı deposits have ongo- Polymetallic VMS deposits are one of ing feasibility studies. Recently discov- the major sources of base-metals in Tur- Many carbonate-hosted Pb-Zn deposits ered Öksüt and İnlice in south-central key and have several producing mines. are hosted by Middle Cambrian to Juras- Turkey are other examples of HS systems. Kuroko- and Cyprus-style VMS depos- sic shelf carbonates in a belt extending Ovacık Au-Ag open pit and underground its are restricted to the Late Cretaceous along the Tauride Mountains in southern mine is a typical LS epithermal deposit. bimodal volcanic rocks in northeastern and southeastern Turkey (Fig. 1), includ- Efemçukuru LS system is the largest epi- Turkey, e.g., Murgul [40 Mt @ 1.25 % Cu, ing from west to east Bolkardağ, Yahyalı thermal deposit in Turkey with 1.5 Moz 0.1 % Zn, 0.05 % Pb, 0.2 g/t Au, 25 g/t Ag (=Zamantı), Tufanbeyli, Malatya, Keban, current gold reserves, and just started with past production of 38 Mt grading and Hakkari districts. These deposits production from an underground opera- 1.1 % Cu] Çayeli, Tirebolu and Lahanos may include MVT, Irish type, sedimenta- tion. Çukuralan (Kaplan) with 0.743 Moz districts, and ophiolitic rocks of the Küre ry-exhalative (SEDEX), and carbonate re- Au reserves recently started produc- district, e.g., Aşıköy [11.23 Mt @ 1.56 % placement (CR) type deposits. Several of tion in western Turkey, and Mastra gold Cu, 2.48 g/t Au, 10 g/t Ag] in Küre north- the deposits possess non-sulfide (oxide) deposit with 0.453 Moz Au reserves in ern Turkey and Ergani district [Anayatak: zinc. Additionally, many small carbonate- northeastern Turkey produced gold from 14.6 Mt @ 1.39 % Cu] and Madenköy replacement Pb-Zn deposits are distrib- an underground and open pit mine. The [25.8 Mt @ 2.06 % Cu, 0.93 % Zn, 31.49 uted throughout Turkey. other examples of LS systems with sig- % S plus Au-Ag] in southeastern Turkey nificant resources include Kısacık and (Fig. 1). The single known highly-meta- Podiform chromite deposits of Turkey Akbaba, in western Turkey. Şahinli in the morphosed VMS deposit of Yenipazar in are related to Alpine-type peridotites Biga Peninsula is an example of an IS central Turkey contains Cu-Pb-Zn-Au-Ag that are a part of ophiolitic assemblages epithermal prospect. Other epithermal ore. Turkish VMS deposits contain com- covering large areas, with the most im-

A Coal Mine At Muğla Operated By General Directorate of Turkish Coal

18 01 September 2011 portant zones in northern and southern hosted, placer deposits, mainly Au, plications for future mineral exploration, Turkey (Fig. 1). Age of emplacement of sediment-hosted Cu, iron oxide copper Economic Geology, v.104, p.19-51. ophiolitic rocks ranges from Jurassic to gold (IOCG), sandstone-hosted U, e.g., Yigit, O., 2006, Gold in Turkey - a missing Cretaceous, but occurred mainly in the Temrezli, Kiruna-type Fe deposits, e.g., link in Tethyan metallogeny, Ore Geology Late Cretaceous. Most of the obducted Avnik district, sedimentary Mn deposits, Reviews, v.28, p.147-179. ophiolites are associated with closure SEDEX Fe deposits, volcanogenic Mn, of the Neotethyan oceans sensu lato. volcanogenic U, detachment fault relat- Turkey has been an important producer ed gold deposits, manganese-hosted Au CONTACTS in the world metallurgical-grade, high- systems, distal-disseminated Au-Ag, and Özcan Yiğit chrome chromite market. The chromitite shear-zone hosted Cu deposits. E-mail: [email protected] deposits are usually small in size, as in Özcan Yiğit, SEG Fellow, received his PhD most other podiform chromite deposits For further discussion of detailed Turkish from Colorado School of Mines, has worked (rarely >1 Mt ore), with complex structur- metallogeny see; for many major mining/exploration companies and is currently associate professor al relationships and podiform, lenticular, of Economic Geology at Çanakkale Onsekiz irregular, shapeless, and/or banded type Yigit, O., 2009, Mineral deposits of Turkey Mart University, Turkey. geometries. Most of the reserve and re- in relation to Tethyan Metallogeny: im- source data for chromite deposits are not up to date or reliable; some old figures give resources of 31.1 Mt at 30 to 48 per- cent Cr2O3.

Karst-type and lateritic bauxite deposits of Turkey are located in the Tauride belt in southern and southwestern Turkey (Fig. 1), except the Kokaksu district in northwestern Turkey. Most of the deposits contain either bauxite (including iron- rich compositions) or diasporite, and the majority of them are karst-type alloch- thonous deposits occurring as pockets or layers in Triassic to Upper Cretaceous limestones. Seydişehir district, including the Doğankuzu, Mortaş, and Kızıltaş deposits, is one of the most productive districts in Turkey with 26.3 Mt of resource at 55 to 67 % Al2O3, 4 to 13 % SiO2, and 13 to 19 % Fe2O3.

Lateritic Ni-Co-(Fe) deposits of Turkey are related to the same ophiolitic terranes hosting the chromite deposits. Though the ophiolite formation occurred mainly during the Jurassic to Cretaceous, the laterite profiles formed in subtropical to tropical conditions in the Eocene to Mio- cene. The Çaldağ lateritic deposit with 33.3 Mt at 1.14 % Ni, 0.07 % Co in western Turkey is amenable to hydrometallurgi- cal recovery of Ni and Co with sulfuric- acid heap leaching.

Other deposit types which have either known examples or potential may include Carlin-type systems, e.g., Diyadin with 3.3 Moz Au resources in eastern Turkey, orogenic gold (OG) deposits including mesothermal and listwanite- Profile www.madencilik-turkiye.com FLSmidth FLSMIDTH – 130 YEARS OF PROGRESS RAHCO, Fuller-Traylor, ABON, Conveyor GLOBALLY ENTRENCHED FLSmidth embraces a rich heritage of Engineering, Vecor, MAAG Gear, Summit FLSmidth maintains strong customer rela- products, brands, and expertise that have Valley, Roymec and Essa Australia. When tionships through its technology centres pioneered and even dominated the min- customers select FLSmidth as their part- and regional sales offices located through- erals landscape for over a century. With a ner, they also bring this solid foundation out the world. The company employs number of strategic minerals processing and over a century of experienced sup- over 11,000 employees worldwide and is and material handling acquisitions over port to their business. known locally in many countries with tech- the last 20 years, FLSmidth has combined its various strengths across all areas to sharpen its competitive edge and create an unmatched portfolio of accomplish- ments while offering a full flowsheet of products and services with a globally di- verse geographical footprint.

INTERNATIONALLY BUILT FROM LEADING BRANDS Offering a complete line of equipment with a diversified product range can have its challenges; yet FLSmidth has been able to tap into the expertise of its knowledgeable and dynamic employees nical sales, customer services, and support who represent and have built the reliable THE FULL FLOWSHEET staff located throughout North and South brands and services that strengthen the As a One Source supplier, FLSmidth inte- America, Europe, Africa, Russia, the Middle framework of today’s FLSmidth. grates testing, detailed design engineer- East, India, China and Australia. ing, global procurement, expert process You know the names; in fact, your in- control, and localized services to ensure The minerals business has had its chal- customized total packages. Utilizing the lenges but the company has been able to FLSmidth embraces a latest in equipment technology, resourc- quickly adapt to new market opportuni- es, and materials, FLSmidth delivers opti- ties. Its largest technical staff complement rich heritage of products, mum design and process support with a is located in India with over 3,000 trained brands, and expertise complete flowsheet of products for the employees. This means that FLSmidth can minerals processing industries. offer detailed engineering and design at very reasonable engineering rates. A global stallation most probably includes many FLSmidth is the industry’s One Source for procurement strategy also allows the com- pieces of equipment from these leading crushing, grinding, classifying, thickening, pany to source equipment and materials brands that have now combined to rede- clarifying, filtering, slurry handling, flota- competitively, thus creating more oppor- fine FLSmidth: FFE, EIMCO, Dorr-Oliver, tion, underground mining, pyroprocess- tunities for reduction of cost and optimiza- KREBS, WEMCO, Pneumapress, KOCH- ing, material handling, expert controls, tion of delivery schedules. MVT, Möller, CEntry, Raptor Crushers, engineering, and modernisation services.

CONTACTS

FLSmidth (UK) Ltd Wemco House, 11 Mitchell Court, Castle Mound Way, Rugby, UK - CV23 0UY Tel: +44 1788 555777 Fax: +44 1788 555730 E-mail: [email protected] Website: www.flsmidth.com Profile www.madencilik-turkiye.com Chesser Resources Chesser has been in Turkey since late transparency to the processes and pro- ment is a supportive landowner and the 2007 and has published a JORC-com- cedures for getting things done. local nearby population is well educated, pliant gold resource of 303,000 oz at its motivated and receptive to a sustainable Sisorta joint venture project, as well as Chesser’s Ankara-based team, com- mining enterprise. assembling a host of other exploration posed of talented people boasts a solid projects. Their flagship is Kestanelik low- background in modern exploration, with OTHER INTERESTS sulphidation epithermal vein gold proj- years of previous experience at a number Chesser is not just focusing on this prop- ect, which lies within view of the Darda- of major international mining compa- erty; it has other areas of interest. At nelles in the western part of the country. nies. Earlier this year, Chesser completed Karaayi, a copper-gold porphyry project Rick Valenta, managing director who has a 10,000 m drilling over the targets de- not far for Kestanelik, a drill program has had a long career in minerals exploration fined by the previously completed geo- been underway. At Sisorta, in northeast- around the world including a period physical surveys which extended the in Turkey with Fronteer Development outcropping 2.5 km of mapped veins by Ltd. During regular visits to Turkey he more than an extra 18 km of additional met Cem Yüceer, Chesser’s talented and interpreted veins under cover. Chesser young country manager. has also extended its soil sampling cov- erage way to the East, to the prospect Rick and his team was responsible for with some encouraging soil sampling identifying the jewel in Chesser’s explo- in areas where no drilling has yet taken ration crown: the Kestanelik Project. place. This prospect have interpreted veins lying below this shallow gold- “THE FLAGSHIP”: KESTANELIK anomalous cover. Moreover, the texture ern Turkey, plans for further exploration Kestanelik has most of the keystones and chemistry of the veins sampled so and development are being planned. that you would hope to find in this type far have led Chesser to believe the area Chesser also has some 100 % owned of gold exploration project: It is an epi- is at the top of the precious-metals zone properties in Pontides and carrying out thermal vein project of the same type some exploraion activities. Chesser will as Cerro Negro in Argentina and Cracow keep an eye for advanced stage projects in Australia, the defined veins are wide Kestanelik has all the both in Turkey as well as the vicinity. enough, and have returned a significant Chesser Resources will keep investing number of wide drill intersections at ingredients that you Turkey and is looking forward to a gold- greater than 10 g/t Au. Chesser is now would hope to find en future of this lovely country. carrying out a 30,000 m drill programme on the project, with plans to have a JORC compliant resource after the conclusion of the epithermal system. This is good of the programme. Chesser’s mission is because the company expects to drill, to to be a good “corporate citizen” in Turk- reveal continuing grade at depth, with ish jurisdiction where the newly revised the mineralisation still quite close to the CONTACTS Chesser Resources mining law has added certainty and surface, but with the best grades of the 96 Stephens Rd, South Brisbane system still intact and Queensland 4101 available to mine. As Tel: +61 (0)7 3844 0613 Kestanelik is so acces- Fax: +61 (0)7 3844 0154 sible, the cost of the E-mail: [email protected] Website: www.chesserresources.com.au infrastructure and services required to es- Chesser Arama ve Madencilik Ltd Sti (The tablish mining opera- Turkish subsidiary of Chesser Resources) tions should prove to Sehit Ersan Caddesi 4/17 Cankaya 06680 be a major attraction. Ankara- TURKEY Tel: +90 312 466 6042 Good infrastructure, Fax: +90 312 466 6043 power, roads and oth- E-mail: [email protected] er services lie nearby. Website: www.chesserresources.com.au The Turkish govern-

01 September 2011 21 Article www.madencilik-turkiye.com Turkey: Europe’s Largest Gold Producer Future of gold mining in Turkey looks in western Turkey” which was penned In 2006, Tüprag Metal Mining (Eldorado- highly impressive and bright given the by Prof. Dr. L. T. Larson in the Mining gold) poured first gold at Kışladağ Gold developments in the recent years. The Engineering Journal in November 1989 Mine in Uşak. In 2009, Koza Mining start- last decade marked a substantial devel- helped to increase interest in Turkey. ed gold production in Gümüşhane - Mas- opment in the field of gold production tra Gold Mine. In 2010, Anatolia Minerals in Turkey. Gold production, which first Eurogold, an Australian company, made (Alacer Gold) started gold production started in the year 2000, is estimated to the first significant discovery with epith- in Erzincan - Çöpler Gold Mine. In the reach approximately 25 tonnes in 2011. ermal gold formation in İzmir - Bergama- first half of 2011, Tüprag (Eldoradogold) Ovacık which has boosted the interest in started operation at Efemçukuru Gold Turkey. Mine in İzmir Gold production in Turkey is estimated to Ovacık Gold Project being the first gold In 2011 Eskişehir - Kaymaz (Koza Gold ) mine project in Turkey, received a strong and Niğde - Ulukışla (Gümüştaş Mining) reach 25 tonnes in 2011 opposition in Turkey. However, after sev- are expected to be in operation. In 2013, and 40 tonnes in 2013 eral years of hard work in establishing it is estimated that gold production will good understanding with the people be launched in Konya - İnlice (Stratex), who had concerns about the operation, Çanakkale - Kirazlı & Ağı Dağı (Alamos), Investing in gold exploration in Turkey the mine was commissioned in 2001. Red Rabbit - Sındırgı - Balıkesir (Ariana was prompted by some changes in the Resorces) and Ağrı Diyadin (Koza Gold) Mining Law in 1985. Later on, an article Ovacık Mine was followed by others in projects. named “Geology and gold mineralization the followings years;

22 01 September 2011 Between the years 2000 - 2010 approxi- Gold Reserves and mately 1,200,000 meters of drilling has been done and a risk capital of around Resources of Turkey 500 million USD has been spent for gold Reserves exploration. In return, around 800 tonnes 800 Tonnes of operable gold reserve has been identi- fied.

Gold production in Turkey is estimated to reach 25 tonnes in 2011 and 40 tonnes Resources in 2013. 5700 Tonnes

The 2010 amendments in the mining law

Kışladağ Open Pit Gold Mine extended the exploration period from 5 to 7 years, which provided certain relief to explorers. Reference: Turkish Gold Miners Association, 2011 Turkish Gold Production (* 2011 Estimated) (Tonnes)

25.0

17.0

14.5

11.0 10.0 8.0 5.4 5.0 5.0 4.3

1.4 0

2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 *2011

01 September 2011 23 Increases of Gold Reserves

800 800 710 700 600 509 500

Tonnes 400 340 300 200 100 45 100 0 1994 1997 2000 2003 2008 2010 The Government’s activities aiming at Year enhancement of investment climate in Turkey includes simplification of permit- ting procedure. One major study within this context includes changes in the Exploration Drilling legislation in order to enable issuance (* 2011 Estimated) of permits from various government x 1000 Meters authorities during the Environmental Impact Assessment (EIA) process at the 300 Ministry of Environment and Urbaniza- 300 tion, sort of one-stop office for authori- 250 218 zation and permits. This change will be a 207 200 major step to minimize time and cost of 159 156 investment in mining in Turkey. 150 129 95 Meters x 1000 Meters 100 52 42 50 17 24 30 CONTACTS 0 2000 200220012003 2004 2005 2006 2007 2008 2009 2010 *2011 M. Ümit Akdur President Of Year Turkish Gold Miners Association Tel : +90 (312) 466 36 77 Fax : +90 (312) 466 40 60 E-mail: [email protected] Web: www.turkishgoldminersassociation.com Drilling Expenditures (2011* Estimated)

140 120

120

100 83 87

80 64 63 60 52 Milion USD 38 40 21 12 17 20 7 10 0 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 *2011

Year

24 01 September 2011

Profile www.madencilik-turkiye.com Maxwell GeoServices MAXWELL GEOSERVICES PTY LTD OFFERS WORLD LEADING DATA MANAGEMENT SOLUTIONS TO THE EXPLORATION AND MINING SECTOR.

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DataShed is Maxwell’s main data management software package and allows companies to store, view and analyse their data and metadata in one area. An addition to DataShed is the QAQCReporter, which further enhances a company’s geological data capability, allowing them to monitor and report on assay quality control for data across all commodities.

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26 01 September 2011

Article www.madencilik-turkiye.com

Mining Sector In The World and In Turkey ASSOCIATION OF MINING SECTOR pected to show an annual increase of Internal production in Europe is far from PRESIDENTS’ COUNCIL (MSBK) about 12 %. It is assumed that through- meeting the whole consumption. Members of the Association of Mining out the next 80 years, over one trillion Sector Presidents’ Council: Association tons of mineral ore will be consumed A Working Group established under the of Turkish Miners, Association of Ce- only by developed countries. presidency of the European Commission ramic, Glass and Cement Raw Materials reduced the number of critical raw ma- Manufacturers, General Mine Workers Great additional investments have been terials to 14 after studying on and ana- Union, Turkish Mine Workers Union, Is- made for mining establishments within lyzing the 41 minerals and metals that tanbul Mineral and Metals Exporters’ the European Union from the year 2005 had been previously selected, between Association (İMMİB), Turkish National on. It is observed that budgets allocated April 2009 and June 2010. A material Committee of World Mining Congress, for researches in mining have also been the supply of which has the risk of lim- Aegean Mineral Exporters’ Association, increasing. itedness and is essential for economy at the same time is defined as “critical”. Turkey has also a place in Many of the metal mines are either found Antimony, Beryllium, Cobalt, Fluorite, in very little amounts or not found at all in Gallium, Germanium, Graphite, Indium, world ranking regarding Europe. For example, regarding world re- Magnesium, Niobium, PGM (Platinum its chrome, magnesite, serves, the rate of copper is 5 %, iron ore is Group Metals), Alkaline-earth Metals, feldspar, barite, argil, coal 2 %, nickel is 1.7 % and lead is 8.5 %. Tantalum and Wolfram are the raw materials which have been defined as critical. and silver potential Development of countries is directly re- Without these raw materials, it seems lated to their mine consumption. Mine impossible to switch to sustainable and consumption per person in the world is; environment-compatible production. Association of Turkish Marble, Natural •• 21 ton / year - in the USA These advanced technology metals play Stone and Machinery Manufacturers •• 18 ton / year - in the EU a very important role in reducing green- (TÜMMER), Society for Mineral Research •• 6 ton / year - in Turkey. house gas emission, increasing energy Center, Association of Industrialists and efficiency and developing innovative Businessmen of Ankara, Turkish Cement Increasing demand as a result of the environmental technologies. Manufacturers’ Association, Gold Miners’ rapid industrialization in developing Association, Association of Young Min- countries such as Brazil, China and India Mineral ores valuing 40 billion USD were ing Businessmen, Association of Central has made the supply of raw materials extracted in the USA in 2005 other than Anatolian Miners and Association of needed by the EU harder. energy minerals. Value of the enriched Mining Consultant Engineers. products obtained by processing these In order to maintain its competitive posi- minerals is 360 billion USD. The contri- CURRENT SITUATION IN THE WORLD tion, the European Union needs reliance bution of industries based on mines and 17 % of the total world metal consump- on raw material flow and stability in pric- mining to the economy of the USA as a tion is used by China and this rate is ex- es. Reserve distribution of resources other result of converting the processed min- than energy in the world is quite uneven. erals into end products is 2 trillion USD.

28 01 September 2011 Kırka Boron Open Pit Mine & Plant

CURRENT SITUATION IN TURKEY 3. Mining Sector’s Economic Indicators and higher value-added production. Role of Mining Sector in Economy 3.1. Mining’s Share of GDP (with current basic Only then the value- added created by Mining sector creates employment op- prices) the sector will find the place it deserves portunities especially in rural areas, while While the share of mining sector in gross in GDP. it also provides basic inputs required by domestic product was 1 % in 2000, it many sectors, industry in particular. It en- started to increase in 2006 and reached 3.2. Growth Rates in Mining Sector and GDH ables infrastructure investments in these 1.4 % in 2010 as seen in Table-1. As seen in Table-2, the sector lived regions to a great extent. through a dramatical recession due to structural crises caused by economic de- Share Of GDP Mining Contemporary technology and modern Years Mining ficiencies between 1999 and 2004. With (x 1,000 TRY) (x 1,000 TRY) life can exist and develop by using min- (%) the increase of native and foreign capital ing products. 2006 758,390,785 8,952,359 1.2 inflow to the sector in 2004, the rate of 2007 843,178,421 10,530,738 1.2 growth reached 9 % in 2005. The share of mining sector in the nation- 2008 950,534,251 13,458,457 1.4 al income of developed industrial coun- 2009 952,558,579 14,235,361 1.4 Global crisis, legislation bottlenecks, tries is as high as 10 - 15 %. 2010 1,105,101,110 15,785,419 1.4 problems caused by decisions for stay

Table-1 Mining’s Share of GDP (with current of motion and annulment given by ad- Any disruptions to occur in the produc- basic prices) ministrative jurisdiction resulted in a tion or supply process in this sector will Source: Data taken from State Planning -6.9 % decrease of growth rate in 2009. Organization’s Basic Economic Indicators, Turkish affect all other sectors either directly or Statistical Institute. In 2010 however, a growth of 12.9 % was indirectly. achieved.

Although it is known that our country Total value created by mining products has the potential of a wide range of min- used as input in industrial and chemical Years Mining (%) GDH (%) erals, this potential could not have been sectors such as glass, ceramic, cement, 2006 5.2 6.9 converted into reserves yet. iron and steel, fertilizer is estimated to 2007 8.1 4.6 be around 25 billion USD on the basis of 2008 5.4 1.0 2. Turkey’s Mineral Potential primary product. The share of this value 2009 -6.9 4.8 Turkey has advantages in terms of the in GDP is 3.6 % which shows the actual 2010 12.9 8.9 subterranean resources it has. Remark- role of this sector in economy. able world reserves of minerals such as Table-2 Growth Rates in Mining Sector and GDH Source: Data taken from State Planning boron, marble and trona are located in For making full use of all the existing Organization’s Basic Economic Indicators. our country although the explorations mineral ore reserves with well-planned made are not sufficient. Turkey has also mining policies, necessary conditions a place in world ranking regarding its should be provided such as lower capi- 3.3. Capital Structure of the Sector chrome, magnesite, feldspar, barite, argil, tal costs, lower taxes and financial costs, As seen in Table-3, the share of min- coal and silver potential. intense use of advanced technologies ing sector’s fixed capital investments

01 September 2011 29 within total investments was about 2.03 3.6. Mineral Export Share of Annual Inflow Inflow to Increase % in 2010. This puny capital size is an to Total As seen in Table-5, mineral export start- Years Mining Sec- in Inflow Mining Inflow evidence of how it was failed to evaluate tor in Total to Mining ed growing in 2006 and reached 3.468 Sector the mineral sources of the country ef- Inflow (%) Sector (%) billion USD in 2010. ficiently and thus provide the necessary 2006 120 16,982 0.7 capital required for converting into high 2007 337 18,394 1.8 180 Mineral export’s share in total export value-added products. 2008 151 14,712 1.0 -55 was 2.3 % in 2006. With the global crisis in 2009, mineral export decreased 23.7 % 2009 89 6,17 1.1 -41 Mining Share Of according to 2008 and dropped to 2.39 Public + Minig 2010 196 6,501 3.0 120 Years Total Capital billion USD. In 2010, the share of mineral Private In Total Total 893 62,759 1.4 Capital Capital (%) export in total export became 3.1%. 2006 171,520.0 2,858.17 1.66 Table-4 Foreign Capital Inflow to the Mining Sector (x million USD) 2007 182,415.0 3,034.07 1.65 Total Mining Mining Source: Data taken from State Planning Years Total Export 2008 192,093.0 2,959.64 1.54 Organization’s Basic Economic Indicators. Export Share %

2009 163,942.0 3,068.98 1.87 2006 85,502.2 2,004.8 2.3 2010 207,676.0 4,223.56 2.03 2007 107,271.7 2,612.4 2.4

Table-3 Capital Structure of the Sector (x million TRY) total was the amount of mining invest- 2008 132,027.2 3,136.7 2.3 Source: Data taken from State Planning ments which is a share of 3.04 %. Total 2009 102,142.6 2,390.4 2.3 Organization’s Basic Economic Indicators. employment made available by the total 2010 113,975.6 3,469.9 3.1 investment amount in this period was 564,593 while it was 22,154 in the min- Table-6 Share of Mineral Export in Total Export (million USD) 3.4. Foreign Capital in the Sector ing sector which means a share of 3.92 % Source: Data taken from State Planning of the total employment. On the basis of Organization’s Basic Economic Indicators and In the 2006 - 2010 period, the amount of Istanbul Mineral and Metal Exporters’ Association. foreign capital inflow to the sector was incentive amounts, average share of the 893 million USD whereas the total for- mining sector in the total amount of in- eign capital inflow to the country during centives was 2.6 %. the same period was 62.759 billion USD. The share of foreign capital inflow to the Industrial Natural Years Mineral Ore Mineral Fuels Total Annual Increase % sector in the total foreign capital inflow Minerals Stone to the country is about 1.4 %. The inflow of foreign capital to the sector increased 2006 430,564 1,027,164 544,436 2,712 2,004,875 36.5 in 2010 resulting in a 3.0 % share in the 2007 491,5 1,242,460 866,692 11,809 2,612,442 36.5 total foreign capital inflow. 2008 647,702 1,415,292 1,040,277 33,471 3,136,742 20.0 2009 437,674 1,240,942 709,906 1,856.07 2,390,378 -23.79 3.5. Incentives in the Sector 2010 590,512 1,568,219 1,303,165 6,993.07 3,468,889 45.11 Regarding the investment incentive certificate given in the 2006 - 2010 period, Table-5 Export Values on the Basis of Mining Sector Product Groups (thousand USD) the total amount of investments was Source: Data taken from State Planning Organization’s Basic Economic Indicators and Istanbul Mineral and Metals Exporters’ Association. 151.87 billion TRY. 4.62 billion TRY of this

Turkey’s First Gold Mine, Bergama Ovacık

30 01 September 2011 In 2010, 45.2 % of the mineral export 3.8. Need for Restructuring for the Effective met for a planning and coordination was constituted by natural stone-mar- Management and Coordination of the Sector which prioritizes economic efficiency in ble, 37.5 % by mineral ores, 17.0 % by For a rational exploration and operation the use and distribution of resources and industrial minerals and 0.40 % by min- of mineral resources in the country, a is also essential for the integration of the eral fuels. While natural stone export has new management approach is required sector with other sectors. maintained its level since 2006, there has which is freed from repression and able Public awareness should be raised based on the facts about mining activities. Mining Industrial Average Natural Average Mineral Average Mineral Average Years Sector Total Mineral % % Stone % % Ore % % Fuel % % Export The development of efficient manage- 2006 2,004,875 21.5 19.28 51.2 48.2 27.2 32.12 0.1 0.40 ment and coordination in bureaucracy 2007 2,612,442 18.8 47.6 33.2 0.4 is of vital importance for the sector. It 2008 3,136,742 20.6 45.1 33.1 1.2 has been compulsory that bureaucracy 2009 2,390,378 18.5 51.9 29.6 0.07 restructures itself in a way to undertake 2010 3,468,889 17.0 45.2 37.5 0.3 this challenging mission and thus gain self respect and elevate the country. Min- Table-7 Shares of Mining Product Groups in Total Mining Export (thousand USD) istry of Mines should be established for Source: Data taken from State Planning Organization’s Basic Economic Indicators and Istanbul Mineral and Metal Exporters’ Association. the efficient management and coordination of the sector. been decrease in the export of industrial to foresee that an incremental increase C. EXPECTATIONS AND OTHER ISSUES minerals and increase in the export of in state’s revenues is dependent upon In case the problems that MSBK out- mineral ores. the increase of production in the sector. lined and proposed to the government are solved, domestic and foreign capital 3.7. Mineral Import Mining Mining inflow to the sector will increase, the Years Ratio % As shown in Table-8, total import in 2010 Export Import mineral potential of the country will be was 185.5 billion USD whereas total min- 2006 2,005 2,732 73 revealed, new mining establishments eral import (excluding crude oil, natural 2007 2,613 3,530 74 will be opened, an important increase in gas, gold and metal import) was 4.492 2008 3,136 4,541 69 employment will be created, our present billion USD. The share of 2010 mining 2009 2,39 4,246 56 mineral ore import will decrease, the in- import in the total import is 2.4 %. When 2010 3,469 4,493 77 dustrial raw material need of our country the imported items are examined, it is will be supplied from native resources Table-9 Ratio of mineral export to mineral import seen that most of the minerals known to (million USD) and our competitive power will increase. exist in our country (including chrome, Source: Data taken from State Planning As a result, our mineral export which was aluminum, zinc, lead, nickel, manganese, Organization’s Basic Economic Indicators and Istanbul Mineral and Metals Exporters’ Association. 3.468 billion USD in 2010 is anticipated titanium ores and concentrates, gypsum, to show an annual increase of 10 % and dolomite, marble and travertine) are be- reach 14 billion USD in 2023. ing imported. This approach should cover the follow- Total Share of Mi- Total ing issues: Years Mining ning Import in Import Import the Total (%) Incentives and supports needed by the 2006 139,576 2,732 2.0 sector should be provided. 2007 170,062 3,530 2.0 Acquired mining rights should be taken 2008 201,963 4,541 2.2 under state guarantee. 2009 140,928 4,247 3.0 2010 185,535 4,493 2.4 Legal permission procedures needed for Table-8 Mining Import Values (million USD) (except mining activities should be speeded up. CONTACTS oil and natural gas) Association Of Mining Sector Presidents’ Source: Data taken from State Planning Council (MSBK) Organization’s Basic Economic Indicators. As a means to prevent illegal acts of mine owners, administrative fines should be Hilal Mah. Turan Güneş Bulvarı Cezayir Cad. 701. Sok. No: 8/2 06550 Yıldız - Çankaya / imposed instead of annulments, within ANKARA/TURKEY the bounds of possibility. Tel : + 90 (312) 440 97 38 As seen in Table 9, the ratio of mineral ex- Fax : + 90 (312) 440 97 39 E- mail : [email protected] port to mineral import was 77 % in 2010 Requirements of the sector should be

01 September 2011 31 ArticleEssay www.madencilik-turkiye.com Mining Companies In Turkey’s Top 500 Industrial Enterprises Of 2010 The İstanbul Chamber of Industry (İSO) the most profitable industrial enterprise another state owned company and the has announced the 2010 results of its an- of 2010 with 4,850,920,203 TRY took the only legal boron producer in Turkey. Park nual Top 500 Industrial Enterprises sur- second place in the list. Oyak-Renault Technique was established under the vey, the equivalent of the Fortune 500 for Otomobil Fabrikaları AŞ has the highest aegis of Ciner Group in 1995 to produce Turkey. Around 100 companies in the list export income of 3,236,949.000 USD, is coal for Çayırhan Thermal Power Plant in are related to mining, raw material and oil at the fourth place, after another auto- the first place. Park Teknik is known to be production. Due to high metal prices and motive sector company Ford Otomotiv the most productive underground mine high economic growth rate after 2008 Sanayi AŞ. foundation in the world. The list contin- crisis, nearly all the mining enterprises ues with the gold-silver-aluminium-cop- ended the year with pre-tax profits. Ac- Türkiye Kömür İşletmeleri (General Di- per producer private companies. cording to the survey, Turkish Petroleum rectorate of Turkish Coal - TKİ) is a state- Refineries Co. (Tüpraş) takes its place on owned company and the biggest coal The list of mining companies entered the top like last year, with the net produc- producer of Turkey since it’s establish- ISO’s Top 500 Industrial Enterprises 2010 tion based sale of 20,819,067,010 TRY. ment in 1957. Eti Maden İşletmeleri survey are in the table below. Electricity Generation Co. Inc. (EUAŞ), Genel Müdürlüğü (Eti Mine Works) is

Rank By No. In Rank By No. In Net Sales Revenue Period’s Profit & Loss Export Production Based Sales Firm or Enterprise Top 500 in 2010 Top 500 İn 2009 (TRY) (Before Tax Return) (USD) (Net-TRY)

18 18 General Directorate Of Turkish Coal 2,157,540,392 340,110,127 - 2,007,646,209 43 56 Eti Mine Works General Management 981,594,635 439,378,567 627,167 981,594,635 98 124 Park Technique Inc. 552,850,803 134,965,879 - 540,749,683 106 137 Tüprag Metal Mining Inc. 512,604,951 331,633,918 11,681 512,604,951 116 144 Koza Gold Operations Inc. 473,241,351 298,781,669 - 470,783,288 143 195 Eti Silver Inc. 406,088,683 93,016,414 77,895 391,605,691 161 188 Eti Aluminium Inc. 416,576,089 77,489,106 159,598 351,860,350 193 265 Eti Copper Inc. 304,748,251 92,599,514 2,112 304,748,251 206 243 Erdemır Mining Industry Inc 291,582,511 122,873,224 - 291,107,928 224 189 General Directorate of Turkish Hard Coal 294,416,462 -456,375,035 - 267,558,885 231 - Soma Coal Enterprises Inc. 259,662,409 18,975,038 - 257,430,166 265 313 Demir Export Inc. 244,099,616 - - 228,068,165 269 - Eti Soda Inc. 225,928,276 - 563 225,781,638 384 363 KÜMAŞ Kütahya Magnesite Enterprises Inc. 158,432,562 22,361,316 52,244 158,107,672 400 434 Eti Chrome Inc. 155,077,281 4,783,210 - 152,955,088 420 397 Söğütsen Ceramic Inc. 175,399,413 - - 146,607,086 436 - Eczacıbaşı Esan Industrial Raw Materials Inc. 183,331,276 - - 141,661,689

Table: ISO’s Top 500 Industrial Enterprises 2010 List Source: The İstanbul Chamber of Industry (İSO)

32 01 September 2011 Magazine “The Brand of Turkish Mining”

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