Mineral Exploration: What, Where - and Why in Turkey

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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.
1042. Cd. 1335. Sk. Vadi Köşk Apt. No: 6/8
2...... FROM THE EDITOR
A. Öveçler / ANKARA / TURKEY
Tel : +90 (312) 482 18 60
Fax : +90 (312) 482 18 61
4...... NEWS
[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

M a g a z i n e

“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
2001 41,399 500 1.209
the cooperation of Ministry of Economy The major commodity that Turkey import
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 re-
source, extending the mine life and fur-
ther 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
Küçükdere, Mastra, Çöpler, Kaymaz, Gicik, sensu lato.
of the Tethyan 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
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 de-
posits. 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 por-
phyry in western Turkey with current
reserves of 10.2 Moz gold reserves and
16.5 Moz total gold resources includ-
ing 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

40°N

38°N

Deposit Types
36°N
26°E
Porphyry Au-Cu-Mo
Epithermal Au-Ag/Cu-Pb-Zn/Hg-Sb
VMS-Kuroko/Cyprus Cu-Pb-Zn/Au-Ag 34°E
Skarn Fe-Cu-Pb-Zn-W-Mo-Au
Carbonate-hosted Pb-Zn
Carbonate-hosted barite-Pb EXPLANAT
Podiform Cr Lithology
Karst-type and lateritic bauxite Submarine Volcanic Rocks Acidic to Intermediate Intrusives
Orogenic Au - listwanite hosted Mesozoic to Miocene
Sediment-hosted Cu Eocene
[Mainly Cenozoic]
Lateritic Fe
Lateritic Ni-Co Upper Cretaceous-Eocene Ophiolite and Ophiolitic Melange
Iron Oxide Cu-Au Mainly Jurassic-Cretac
Upper Cretaceous
Placer Au/U-Th
Detachment-fault related Au Jurassic-Cretaceous Evaporitic Sedimentary Rocks
Carlin-type Au Miocene
Manganese-hosted Au Subaerial Volcanic Rocks Oligo-Miocene
Distal-disseminated Au-Ag
Sandstone-hosted U Quaternary Metamorphic Rocks
Shear-zone hosted Cu Plio-Quaternary Pre-Mesozoic
Volcanogenic U
Cenozoic [Mainly Neogene]
Volcanogenic Mn

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

0 100 200

kilometers

42°E
38°E

PONTIDES

TION ANATOLIDES TAURIDES

BORDER FOLDS
0 200
Carbonate Rocks including recrystallized Limestones kilometers

Jurassic-Creataceous [Mainly]-Jurassic
Triassic-Jurassic
es Structure
ceous Mesozoic Fault
Paleozoic-Mesozoic [Mainly Triassic] Strike-Slip Fault
Normal Fault
Permo-Triassic Thrust Fault
Permo-Carboniferous Probable Fault
Axial Trace of Anticline
Devonian Axial Trace of Syncline
Ordovician-Silurian-Devonian-Carboniferous Extensional Fissures Localizing Volcanoes
Sutures
Paleozoic Thrust belts - teeth on the upper plate
Fig. 1

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
for many major mining/exploration com-
(rarely >1 Mt ore), with complex structur- metallogeny see;
panies 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 depos-
its 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 de-
posits, is one of the most productive dis-
tricts 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 in-
clude 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
quickly adapt to new market opportuni-
FLSmidth embraces a latest in equipment technology, resourc-
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 north- east-
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
E-mail: [email protected]
sible, the cost of the
Website: www.chesserresources.com.au
infrastructure and ser-
vices 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
Ankara- TURKEY
be a major attraction.
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
exploration. In return, around 800 tonnes
Reserves
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

Tonnes
500
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
Meters x 1000

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
100
52 42
50 17 24 30

CONTACTS 0
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 *2011
M. Ümit Akdur
President Of
Turkish Gold Miners Association
Year
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
Milion USD

80 64 63
60 52
38
40
21 17
20 10 12
7
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.

Managing Director Viv Preston started Maxwell GeoServices


in 1998 with the aim of providing flexible and reliable data
management solutions to the resource sector. More than
10 years on, Maxwell has grown to become a world leader
in providing data management software and services, with
a client base that extends across both multi-national and
junior companies, and multiple commodities. Through the
initial DataFIRST process, Maxwell staff are able to capture all
aspects of a client’s data management requirements and use
that information to recommend a tailored data management
solution.

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.

Since its foundation, Maxwell has developed software for


data capture and lease management and now offers a range
of services to resource companies such as data and database
audits, training and mentoring, data management consulting
and database hosting.

The staff at Maxwell and their genuine interest in geological


data management is what sets Maxwell apart from other
companies. Maxwell staff is comprised of geologists and
IT professionals, who know how important data is to the
success of any business. The staff at Maxwell believe in
adding value to a company’s data and this requires constant
attention and support. Maxwell staff are on hand at all
times to answer questions relating to our software or
general data management queries.

What is important for Maxwell is that we use If your company is considering a data
experienced people who understand the client’s management option, contact
business requirements. We then provide a sales@maxwellgeoservices to talk to one of
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data management solution that fits those suits your business.
requirements... no two data management systems Website: www.maxwellgeoservices.com
are the same.

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,
2 %, nickel is 1.7 % and lead is 8.5 %. Tantalum and Wolfram are the raw mate-
feldspar, barite, argil, coal
rials 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
(x 1,000 TRY) (x 1,000 TRY)
Mining ficiencies between 1999 and 2004. With
(%)
life can exist and develop by using min- the increase of native and foreign capital
2006 758,390,785 8,952,359 1.2
ing products. 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 Share of Annual
3.6. Mineral Export
Inflow
% in 2010. This puny capital size is an to Total
Inflow to Increase As seen in Table-5, mineral export start-
Years Mining Sec- in Inflow
evidence of how it was failed to evaluate Mining Inflow
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
2009 89 6,17 1.1 -41
in 2009, mineral export decreased 23.7 %
Mining Share Of according to 2008 and dropped to 2.39
Public + Minig 2010 196 6,501 3.0 120
Years Total Capital
Private In Total
billion USD. In 2010, the share of mineral
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
Source: Data taken from State Planning Years Total Export
Total Mining Mining
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
Table-6 Share of Mineral Export in Total Export
564,593 while it was 22,154 in the min-
(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
sector in the total foreign capital inflow Years
Minerals Stone
Mineral Ore Mineral Fuels Total Annual Increase %

to the country is about 1.4 %. The inflow


2006 430,564 1,027,164 544,436 2,712 2,004,875 36.5
of foreign capital to the sector increased
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 cer-
tificate 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)
Source: Data taken from State Planning Organization’s Basic Economic Indicators and Istanbul Mineral and Metal
istry of Mines should be established for
Exporters’ Association. the efficient management and coordina-
tion 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
Organization’s Basic Economic Indicators and Istanbul
aluminum, zinc, lead, nickel, manganese, 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
Total Share of Mi- 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
Hilal Mah. Turan Güneş Bulvarı Cezayir Cad.
owners, administrative fines should be 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
Article
Essay
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
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