- Turkey | 17 February 2018
Could you provide an update on the performance of Turkey’s gold mining industry in recent years?
Our gold mining industry experienced significant growth from 2000 to 2013, going from zero gold production to 1 million ounces per annum. However, since 2013, there has been a downturn due to hurdles in the permitting regime, with one of the main issues being the high forestry fees that have slowed down investments in expansions and new gold mines. As a result, our production in 2017 was around 24 mt/y, lower than the 33 mt/y achieved in 2012-2013. While there are projects in the pipeline, such as Halilağa in western Turkey, the Öksüt project, and Polimetal Madencilik’s Gediktepe project, they have stayed as highly developed brownfields due to these issues.
What is the potential for Turkey’s gold mining industry, and what is being done to improve the permitting regime?
Despite these challenges, Turkey’s potential in gold mining is much higher than the current production levels, with a capacity of 60 mt/y to 70 mt/y. We believe that there will be an improvement in the permitting regime and the overall mining bureaucracy in Turkey, including new regulations, codes, and incentives. Although this may take time, we have a good relationship with mining policymakers, and the opinions of the gold mining industry are well received within the government. The Turkish Gold Miners Association follows the highest standards for mineral exploration and exploitation, environmental matters, and health and safety, setting an example for other sectors within the mining industry in Turkey.
As an investment-friendly country, what is your message to international investors about the mining policy regime in Turkey?
While there may have been hurdles in the past, ongoing fundamental reforms to the mining sector and economy in Turkey are being introduced, including the introduction of more incentives for investors. As a developing country, Turkey offers significant potential for growth and investment in the mineral industry, and we are committed to creating a favorable and stable environment for foreign investment.
