Mining Turkey Magazine Number 5

by R ISSN: 2146-9423

Mining & Earth Sciences Magazine September 2013 | Vol 3 | Number 5 | www.miningturkeymag.com

• Çayeli Bakır İşletmeleri

30 Years of Success in Black Sea

• Latest Picture of Turkish Mining by the Leaders of the Sector • Turkish Progress and Recent Trends in Chrome Beneficiation

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contents Mining Turkey is published biannually by Mayeb Madencilik ve Yer Bilimleri Basım Yayın Dağıtım Ltd. (Yayın Sahibi) A. Öveçler Mah. 1335. Sk. Vadi Köşk Apt. No: 6/8 Çankaya / ANKARA / TURKEY Phone : +90 (312) 482 18 60 Fax : +90 (312) 482 18 61 info@miningturkeymag.com www.miningturkeymag.com Editor - International Relations (Sorumlu Yazı İşleri Müd.)

O. Çağım Tuğ cagim@miningturkeymag.com General Coordinator Onur Aydın onur@madencilik-turkiye.com Administrative Affairs Volkan Okyay volkan@madencilik-turkiye.com Graphic Design M. Anıl Tuğ anil@madencilik-turkiye.com Web Technologies Bilgin B. Yılmaz bilgin@madencilik-turkiye.com Legal Adviser Av. Evrim İnal evrim@madencilik-turkiye.com Academical Advisers Prof. C. Okay Aksoy Prof. Erol Kaya Prof. Hakan Benzer Prof. İlkay Kuşcu Assoc. Prof. Ali Sarıışık Assoc. Prof. Hakan Başarır Assoc. Prof. M. Emin Candansayar Assoc. Prof. Melih Geniş Assoc. Prof. Melih İphar Assoc. Prof. Niyazi Bilim Assoc. Prof. Nuray Demirel Assoc. Prof. Özcan Yiğit Assoc. Prof. Talip Güngör Advertising Sales advert@miningturkeymag.com Annual Subscription Enquiries subs@miningturkeymag.com Printhouse Başak Matbaacılık ve Tanıtım Hiz. Ltd. Şti. Macun Mah. Anadolu Bulv. No: 5/15 Yenimahalle - ANKARA Tel: +90 (312) 379 16 17 Publication Type and Period (Yayının Türü ve Şekli) Worldwide (Yerel Süreli) - Biannualy (6 Aylık İngilizce) Circulation (Tiraj) 3000

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FROM THE EDITOR TURKISH MINING SECTOR NEWS CHAIRMAN’S MESSAGE OF AME-JAMIESON AŞ ÇAYELİ BAKIR İŞLETMELERİ: 30 YEARS OF SUCCESS IN BLACK SEA Iain Anderson

24..... BARKOM GROUP DRILLING RIG & EQUIPMENT CO. LTD. 26..... LATEST PICTURE OF TURKISH MINING BY THE LEADERS OF THE SECTOR - O. Çağım Tuğ 30..... NETCAD - NETPRO/MINE 32..... METALLOGENY OF TURKEY A DIVERSE COLLISIONAL AND POST-COLLISIONAL ENVIRONMENT FOR MINERAL DEPOSITS - İlkay Kuşcu 40..... DIFFICULT AND ABRASIVE MATERIALS? LET PUTZMEISTER SOLID PUMPS SEE TO IT… 42..... USAGE OF PUBLIC LANDS FOR MINING ACTIVITIES - Cemâl Dursun 44..... THE FUTURE OF MINING THIS WAY! 46..... TURKISH PROGRESS AND RECENT TRENDS IN CHROME BENEFICIATION - Barış Elçi, Alp Malazgirt 52..... PLASTIC COMPANY IN MINING BUSINESS - ŞEN PLASTİK 54..... THE POWER OF SOCIAL MEDIA IN THE MINING INDUSTRY Sean Dessureault, M. Mustafa Kahraman

58..... GLOBAL COMMINUTION COLLABORATIVE - AN INTERNATIONAL RESEARCH TEAM - Hakan Benzer 61..... ARE CERTAIN MINERALS STILL UNDER STATE MONOPOLY? Şebnem Önder, Ayşe Eda Biçer, Işıl Selen Denemeç

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62..... XVII. INTERNATIONAL COAL PREPARATION CONGRESS - 2013 İSTANBUL - Gülhan Özbayoğlu First Quantum Minerals’ copper producer fully-owned subsidiary Çayeli Bakır İşletmeleri (ÇBİ) celebrates its 30th year anniversary this year. ÇBİ’s annual contribution to Turkey’s economy (2012) is 148 million dollars and the mine life of ÇBİ’s Çayeli copper mine is 2019.

Please find the interview with Managing Director of ÇBİ, Iain Anderson at page 18.

September 2013

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Editor www.miningturkeymag.com

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Exploration Slows Down While Production and Resources Increase O. Çağım Tuğ | cagim@miningturkeymag.com As I pointed out in the 4th edition of Mining Turkey, Turkish mining sector has been going through a “Mining Boom”.

Local investors as well as the leading firms of construction and energy sector are now making significant investments in the mining sector. For foreign investors, on the other hand, particularly in parallel with the downward trend of the gold prices have shown, projects that would potentially turn up in Turkey with lower costs have become more interesting rather than the high-cost production projects carried out in the various locations around the globe. The leading foreign mining firms which are presently engaged in production in our country, Eldorado Gold, Alacer Gold, First Quantum and Sibelco are likely to be followed, in a couple of years, by other foreign investors such as Alamos Gold, Aldridge Minerals and Ariana Resources.

Nevertheless, not only the several administrative problems which appeared subsequent to the amendment of the Mining Law in 2010 and the relevant regulations and which we believe would be solved in the short run, but also the decision that permits regarding the use of any stateowned real estate must be subject to the Prime Minister’s approval upon the Ministerial Decree of 16 June 2012 have virtually created a barrier against the sector which had been progressing in a motivated spirit. When suddenly the permit procedures have begun to take longer and longer, exploration companies’ business have slowed down. Exploration had already been suffering due to the budget cuts made by the firms as the first resort in response to the world-wide economic

distress, and it was struck, once more, as a result of the permits which could not be taken in due time or taken only after dreadfully prolonged processes. While a number of firms managed to maintain their explorations smoothly by virtue of submitting early applications and thanks to the conditions of the land explored, other firms had to cancel their drilling schedules. These circumstances, after one and a half year, have cast a serious effect on exploration, drilling and equipment sectors. Despite the positive responses received upon the communications made to the decision-making authorities, a conclusive result has yet to be achieved.

The first suggestion to solve this problem would be leaving the mining sector out of the decree’s scope. A summary of the latest developments in our country could be found in our article titled “Latest Picture of Turkish Mining by the Leaders of the Sector” including statements of significant figures from the sector.

It is OK to say that the circumstances which have discontented the exploration sector have almost had zero effect on production. No factors other than the sudden drop in the gold prices in April caused an impact on production figures.

The production increase planned in the Kışladağ Gold Mine owned by Tüprag Metal Mining, a subsidiary of Eldorado Gold which is one of the leading producers in Turkey, had to be postponed on account of the downward trend of the gold prices. On the other hand, Alacer Gold’s subsidiary Anagold Mining announced a resource increase regarding Çöpler Gold Mine. Local gold producer Koza Gold is presently carrying out pro-

duction in 4 different mines. In addition to these companies, Soma Holding - Turkey’s prime coal producer in the private sector - has experienced major developments as in the cases of Eczacıbaşı Esan in lead-copper production as well as other merchandises, Meta Nikel and VTG Holding in nickel production field, Centerra Gold, Chesser Resources and Stratex in gold sector. Upon the achievements by 100% state-owned enterprise Eti Mining, in boron production and market, Turkey as the host of the 70% of boron reserves, has become the leader in the boron market. Within the tax champions list, there are 10 mining firms in the top 100. Despite the advancements in our raw material exportation (particularly as part of the effect cast by natural stone and marble sector), the prevailing high levels of importation (prominently gold and copper) indicate that Turkey still needs a better domestic production.

In the light of the development of the past six months, one can easily say that Turkey has been keeping up the good work in becoming a country of mining.

According to the statements by the authorities, the government plans to increase the contribution of the sector to the economy which is 1.5% of GDP, which falls below the world average of 2%. In the wake of these statements, we hope the government will promptly find the due solutions to increase the sector’s effect on the GDP and thus, another complication against making Turkey a leading mining country will be eliminated.

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Canadian Mining Roundtable Meeting The Canadian Consulate in İstanbul organized a Mining Roundtable lunch meeting at the Sheraton Hotel in Ankara for the Canadian companies active in the Turkish mining sector.

The main objective of the function was to discuss with Canadian companies the highlights of the Canadian Government’s approach to Corporate Social Responsibility (CSR) issue and to review the CSR activities undertaken by the Canadian companies in terms of environmental preservation and community services in Turkey. The discussions were also aimed at reviewing the challenges faced by Canadian firms in Turkey and ways to address them. The meeting also included discussions of pre-requisites

for sustainable mining in the Turkish environment.

Senior officials from Canadian mine exploration and operation companies attended the meeting and they expressed their satisfaction with the exchange of views.

In his welcoming remarks, John Holmes, the Ambassador of Canada, who chaired the meeting mentioned that environmental sustainability as well as healthy community relations based on mutual trust are essential elements which the companies should make priority.

Mr. Shawn Steil, the Consul of Canada in İstanbul, made an overview of the CSR

guidelines of the Canadian Government and the incentives and assistance available for CSR programs both in Canada and overseas.

The company representatives who participated in the event shared their experience in implementing their CSR projects with reference to the specific regions and communities where they operate. Discussions also covered the elements of successful CSR programs to ensure harmonious relationship with host communities. The emphasis was made on the mutual trust, transparency and utmost respect to the environment and the livelihood of the communities they interact with. It was agreed that satisfactory CSR programs are indispensable elements for sustainable mining activity. Successful CSR track record of the Canadian companies and community acceptance for them were cited as the proof of this concept.

Akın Kösetorunu, Trade Commissioner at the Consulate of Canada in İstanbul stated that such gatherings are beneficial and discussions in these functions very productive.

Dedeman Madencilik is Looking for New Partners Dedeman Group announced its growth strategies in one of the important areas of the company’s business, mining, as new investments, public offering and acquiring partners for minority stake.

Levent Gökmen from Ekonomist reports, Dedeman group, one of the leading companies in the country’s mining sector, is planning new investments in lead-zinc field in Balya, Balıkesir and

chromium field in Adana. In addition, a manager of the Group, Rıfat Dedeman stated that upon completion of the said investments in three years, they plan to launch Dedeman Madencilik public offerings at domestic and outside markets, adding that they are open to strategic partnerships that can contribute in know-how for reaching the mining company’s growth targets, with the

condition of holding minority stakes.

In January of this year, Murat Dedeman, CEO of the 66-year-old company, had announced their target of 130 million dollar of turnover for 2013, and 100 million dollar of mining and 20 million dollar of tourism investments, totalling to 120 million dollars in investment.

12-Billion-Dollar Project Delayed The United Arab Emirates’ state-owned energy company TAQA has decided to delay its 12-billion-dollar investment in Afşin - Elbistan.

In his statement, the Minister of Energy and Natural Resources Taner Yıldız indicated that the negotiations had reached a certain level up until the decision of postponement and that they hope the decision is not driven by political motives. Yıldız suggested that

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the developments in Egypt and Syria show that they have come to a point to make a choice in terms of energy investments. He also noted that they have already initiated talks with other countries to take on the scheme.

In January 2013 Turkey and TAQA had signed a contract for establishing a8000MW power plant upon an investment of 12 billion dollar in Afşin - Elbistan. The plan was, by means of this

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investment, to generate 45 billion kWh of energy annually in exchange for 85 million tonnes of coal, each year.

By virtue of this contract signed between the governments, the aim was to build new power plants in sites B, C, D, E and G within the basin, and to integrate coal reserves into the economy upon ensuring their operation.

Çöllolar is Restored to Operation

Çöllolar Coalfield, a part of Afşin Elbistan B Thermal Power Plant, is restarted to operate 25 months after two accidents. Eleven mine workers died as a result of two landslides at the site on 6th and 11th of February, due to very large masses of earth moved. Şeref Göksu, Operations Manager of Çöllolar Coalfield, has informed Cihan News Agency that the Electricity Generation Company (EÜAŞ) has

authorized stripping of a total of 33 million cubic meters of earth so as to stabilize the damaged slopes and added that they have commenced work with this scheme.

Highlighting that the work will absolutely not involve lignite production, Göksu stated the purpose as restoring the field safety. He also claimed that lignite production is believed to resume,

with the authorization by EÜAŞ, after safety of the slopes and the mine is reestablished. Göksu noted that following the accidents in 2011, operations were suspended and the staff was sent on leave, and he added that required number of workers will be called back to work and there are no plans for recruitment for the time being.

Ariana Resouces Announced the EIA for Kızıltepe Ariana Resources plc, the gold exploration and development company focused on Turkey, announced the submission of its final Environmental Impact Assessment (EIA) report for the Kızıltepe gold-silver project to the Ministry of Environment and Urban Planning (MEUP), via its joint venture company in Turkey, Zenit Madencilik San. ve Tic. AS, in September.

Ariana expects that the MEUP will review the submitted documentation ahead of ministerial approval which is anticipated during Q4 2013. Once Ariana has received its environmental positive certification it will be able to proceed with final permitting for construction, targeted by the end of Q4 2013. In parallel, the company and its JV partners are negotiating finance for the construction of the mine and of expected commissioning of

the mine, which is currently scheduled for H2 2014.

Michael de Villiers, Chairman of Ariana Resources commented: “The submission of our EIA marks a further crucial step towards Ariana and its partners commencing construction of our initial mine at the Red Rabbit Gold Project, before expected initial commercial production in H2 2014.”

Turkish Mining Committee to Ring the Opening Gong of London Stock Exchange on September 25th Turkey Mining Finance Investment Summit organized by EBY International Summits will take place in London on 26th and 27th of September, 2013. With press sponsorship by Madencilik Türkiye and Mining Turkey, the most recently announced highlight of the summit supported by Turkish Miners Association is ringing the opening gong of London Stock Exchange on September 25th

by Turkish Mining Committee.

In his statement to Madencilik Türkiye, Yaşar Şuşek, CEO of EBY International Summits, pointed out that this summit organized with the goal of promoting mining in Turkey, will be a pioneer in the sector. Şuşek claimed that Turkey’s mining companies will meet with the global capital for the first time and at the heart of the world’s financial markets; London.

He suggested that opening London Stock Exchange by Turkish Mining Com-

mittee a day before the summit is a sign of importance of Turkey’s mining for London’s financial market.

Communicate with Mining Turkey for discounted participation opportunities to the Summit that will serve as a platform to reach most needed venture capital and other funds for project development and investment.

Erdemir Receives 1.5 Billion Lira Incentive for Hasançelebi Erdemir Madencilik announced that it received an investment incentive certificate of 1.5 billion Turkish lira for iron ore enrichment and pelletization works that have 3 million tonnes capacity, planned to be constructed in Malatya, 700 km southeast of Ankara. Stated to be a completely new enterprise, the investment in question, received with the investment incentive certificate with date 31.05.2013 and number 110476, is a total of 1 billion 569 million lira and the breakdown is revealed as; 208 million 339 thousand

362 dollar (385,427,819 lira) for imported machinery and hardware, 10 million 493 thousand 304 lira for locally manufactured machinery and hardware, 582 million 332 thousand lira for building construction, and 590 million 746 thousand 877 lira for other expenses.

Supporting components of the investment are; vat exemption, vat reimbursement, customs duty waiver, interest rate waiver, support for social security employer portion (7 years)

with tax reduction rates (90%, 50% Contribution to Investment).

Previously disregarded Hasançelebi site on the basis of bearing low-grade ore can now be utilized with advanced technologies. Detected reserve at the site is calculated as approximately 1 billion tonnes and the grade is on average 19.49% (Fe3O4). The facility is expected to produce 3 million tonnes of pellet with a mine life of 64 years.

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AME Jamieson Management Consultancy and Engineering AŞ Joint Venture Announced Jamieson Group of Australia and Afrasia Mining and Energy AŞ have joined forces to create a new joint venture, AME Jamieson Management Consultancy and Engineering AŞ in Ankara Turkey. The new company, AME Jamieson (AMEJ) is to offer a complete end-to-end services solutions for mining industry in Turkey and the surrounding region. This joint venture was designed to provide customers with a single point of access for all of their performance improvement, change management, technical and engineering services, including green field explorations to mine closures and mining operations.

“We are very excited at the level of the combined expertise and experience of AME Jamieson can deliver. AME Jamieson AŞ, will excel at providing strategies, methodologies, best practices, technical and operational due diligence, engineering and operational performance improvement services, training to ensure delivering practical ideas and performance driven solutions that produce measurable business benefits to the client companies as quickly as possible” said David Jamieson, President of Jamieson Group and Chairman at AME Jamieson AŞ.

“Our Areas of Primary Focus & ValueAdd will be (1) Diagnosing Risk and

Opportunity (2) Articulating Performance Potential, (3) Improving the Quality of Internal Decision Making, (4) Implementing Systematic and Behavioral Change, (5) Delivering Tangible Results and Superior ROI’s (6) Building Sustainable Organizational Capacity in addition to all technical and engineering services in mining” said Alan Clegg, Chairman at Afrasia Mining and Energy and Vice Chairman at AME Jamieson AŞ.

Immediate target market will be Turkey. AME Jamieson will also focus on markets where AME is already active in North Africa, Middle East, Eastern Europe, Balkans and Turkic Republics.

Turkey’s First Stainless Steel Production Facility Opened The factory in Kocaeli, which will produce stainless steel to be also used in automobiles, has initiated production upon the partnership between the South Korean Posco, world’s fourth largest steel producer, Kibar Holding and Daewoo International. The factory, located in Alikahya district of Kocaeli, with its annual production capacity of 200 thousand tonnes, will provide direct employment for 400 people.

The opening ceremony of the facility welcomed the Minister of Science, Industry and Technology Nihat Ergün, President of Kibar Holding’s Management Board Asım Kibar, President of

Posco Joon Yang Chung, President of Posco Assan TST Management Board Ali Kibar and Vice-President Dong Hee Lee on behalf of Daewoo International. In his speech during the ceremony, the Minister Nihat Ergün pointed out that the facility was Turkey’s first stainless steel factory. Ergün also noted that our country’s annual stainless steel consumption was around 325 thousand tonnes and almost all of this demand had been satisfied through impartation. “A significant need in our country will be met thanks to this new factory” he added.

agement Board Ali Kibar indicated that the factory has been established with an annual production capacity of 200 thousand tonnes initially and it had commenced its operation as Turkey’s first cold-rolled stainless steel producer.

Kibar also noted that in the next stage, the facility’s annual production capacity will reach 400 thousand tonnes and subsequently will hit 1 million tonnes.

As long as the raw material demand of the facility is satisfied domestically, it will surely provide for the rise of a larger market within the mining sector.

As he took the floor in the ceremony, the President of Posco Assan TST Man-

Meskan İsmet Ölmez Invests 6.5 Million Dollars in Hakkari Meskan İsmet Ölmez Madencilik owned approximately 6.5 million dollar worth zinc enrichment facility, which was built in Ulgunlar village, on the Hakkari - Çukurca highway in 1999 but started operating only in 2005, is said to be at its final stage of establishment and that the production will soon begin. According to İHA’s report, the mine that has nearly 30 working construction equipment and that has provided approximately 250 employment opportunities has exported 350,000 tonnes of ores and the new establishment will

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not only increase employment but also regional exportation.

ity, which costed 6.5 million dollars, will start production shortly.

İsmet Ölmez, the owner of Meskan İsmet Ölmez Madencilik stated that they have established an important presence in the exportation of the region with the construction of their mine and pointed out that this region has the highest emigration and the industry is not well developed due to terror in the eastern Turkey. Ölmez indicated that the region bears rich zinc and lead reserves, and that their facil-

In different fields of the company, 4 types of zinc ore; Akkaya Massive Metallic Giper Carbonate Zinc, Meskan Metallic Zinc, Meskan Oxidized Zinc and Diyarbakır Metallic Zinc are produced. Geological surveys estimate the apparent zinc reserve at the company’s licensed fields to be 5 million tonnes and additional drill holes are believed to increase this estimate.

September 2013

Contract Signed for Kangal Thermal Power

Plant and its Coal Site Kangal Thermal Power Plant Electricity Generation Co. whose tender was concluded in February 2013, owned by the Joint Venture Group of Konya Şeker and Trade Co. - Siyah Kalem Engineering Construction Industry and Trade Co. with a share of 51% and by Çobanyıldızı Electricity, a subsidiary of Anadolu Birlik Holding, with a share of 49%, signed its contract of 985 million dollar on 14 August 2013. The license of generation to be awarded will be valid for 49 years.

The contract signed between the Presi-

dency of Privatization Administration (ÖİB) and Kangal Thermal Power Plant Electriciy Generation Co. regarding the sale of Kangal Thermal Power Plant and its coal site is scheduled to be announced to the public upon a ceremony to be held in Ankara on 19 August 2013 and the Minister of Finance Mehmet Şimşek, the Minister of Energy and Natural Resources Taner Yıldız, the Acting President of ÖİB Ahmet Aksu and the President of Energy Market Regulatory Authority (EPDK) Hasan Köktaş are expected to show up at the ceremony.

Whereas the tender of Kangal Thermal Power Plant Electricity Generation Co. had been awarded to the Joint Venture Group of Konya Şeker and Trade Co. Siyah Kalem Engineering Construction Industry and Trade Co., the winning consortium later altered its partnership structure. The Joint Venture Group has maintained its dominant share of 51% within the new partnership structure; however the share of Siyah Kalem has declined. Çobanyıldızı Electricity, a subsidiary of Anadolu Birlik Holding, joined the consortium as the third company with a share of 49%.

Eti Maden Strives to Increase Colemanite Use in

Iron and Steel Production Working towards making colemanite use in iron and steel production a common practice, Eti Maden announced joint experimental studies with Diler Demir Çelik, a subsidiary of Diler Holding. The experiments performed at Diler’s production

facilities together with Eti Maden staff aimed at transforming slag into a glass-like state by adding appropriate amount of colemanite to powder slag produced in ladle metallurgy during iron steel production from scrap.

In case colemanite is used by scrapbased iron steel producers in Turkey, a colemanite market of 10,000 - 15,000 tonnes/year, and if it becomes a globally common practice an additional 200,000 tonnes/year, is estimated to emerge.

2012 Main Economic Indicators Report by Directorate General of Mineral Research and Exploration (MTA) The Main Economic Indicators Report of 2012, which takes detailed stock of Turkey’s mineral reserves, indicates that our country hosts 700 tonnes of gold reserves and 9 thousand 129 tonnes of established uranium reserves. According to the sectorial distribution of the GDP, mining and quarrying has grown by 21.5% in 2011 and 10.3% in 2012.

The ratio of mining within the GDP has been 1.49%. The report which demonstrates the progress Turkey has made in the mining sector during the past 8 years, contains information on the minerals Turkey produced between the years 2003 and 2012. Anthracite production which was 51 million 670 thousand tonnes in 2003 reached 85 million tonnes in 2011; cement and construction raw material production which was 69 million 900 thousand tonnes in 2003 reached a total of 397

million 284 thousand tonnes in 2011; metallic minerals production which was around 3 million 537 thousand tonnes in 2003 reached 25 million 774 thousand tonnes in 2011 and industrial raw material production which was 28 million 908 thousand tonnes in 2003 reached 83 million 178 thousand tonnes in 2011.

The report revealed that the growth experienced in the construction sector in the recent years has cast an effect on the production of cement and construction raw materials. In this regard, the amount of the cement and construction raw materials produced in 2003 was 69 million 900 thousand tonnes whereas this number has reached 397 million 284 thousand tonnes in 2011.

Turkey’s other mineral reserves are as follows: Turkey has reserves of 700 tonnes gold, 4 million tonnes alunite, 203 thou-

sand tonnes antimony, 82 million tonnes asphaltite, 29 million 646 thousand tonnes asbestos, 1 million 786 thousand tonnes copper, 35 million tonnes barite, 1 billion 641 million 381 thousand tonnes bituminous schist, 250 million 543 thousand bentonite, 87 million 375 thousand tonnes bauxite, 3 billion 660 million 300 thousand tonnes boron, 3,820 tonnes mercury, 2 million 294 thousand tonnes zinc, 122 million tonnes iron, 44 million 224 thousand dolomite, 70.5 million tonnes phosphate, 90 thousand tonnes silver, 5 billion 733 million 708 thousand tonnes rock salt, 354 thousand 362 tonnes clay, 26 million tonnes chrome, 860 thousand tonnes quartz, 626 thousand tonnes sulphur, 13.3 billion tonnes lignite, 5 billion 161 million tonnes marble, 1 billion 479 million tonnes pumice,1 billion 126 million 548 tonnes anthracite, 380 thousand tonnes thorium, 9 thousand 129 tonnes uranium.

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500 Largest Companies of 2012 Published Fortune, one of the leading finance magazines of the world, announced its annual list of 500 largest companies. According to the list, upon a sharp slam on the brake in our economy in 2012, the growth of GDP remained in 2.2%, and such downfalls experienced last year caused negative reflections in the balance sheets of companies. Nevertheless, the economic magnitude of the companies in Fortune’s 500 has increased by 11.2% and reached 614 billion 977 million Turkish lira. In 2011 when the growth of GDP was 8.8%, the growth in the net sales of Fortune’s 500 companies was 22.2%, and it has been discovered that the growth of the companies on the list in 2012 did not slow down as in the case of the country’s economy.

Several companies in the mining sector or dependent on the mining sector have again made it to the Fortune’s 500 list and public organizations such as Turkish Coal Enterprises and Eti Mine Works stood out in the higher ranks of the list.

Turkish Coal Enterprises, upon net sales of 3 billion 182 million Turkish lira in 2012, came 33rd on the list compared to the 32nd place it held on the list last year with 2 billion 907 million Turkish lira. Eti Mine Works, on the other hand, came 69th on Fortune’s 500 list with its net sales of 1 billion 491 million Turkish lira whereas it ranked 72nd on the same list upon 1 billion 474 million Turkish lira. As there has been no significant variation in

the ranks of both companies compared to last year, it can be inferred that they maintain a consistent line of progress.

Fortune’s 500 hosted 21 cement production companies and no significant variations were observed in their ranks.

The proximate values observed in the net sales of Eti Mine Works, in the last two years indicate the prevailing maximum gain acquired upon full-capacity operation of the organization’s facilities.

The organization will surely climb up in the list in the coming years, upon capacity increases.

Söğütsen Ceramic and Seranit Granite Ceramic stood out upon their advancement in the list, followed by Eti Copper by virtue of its stride of 60 places.

Despite its one step down within the list, Turkish Coal Enterprises displayed an increase of 200 million Turkish lira in its net sales in 2012, compared to last year.

It seems Turkish Coal Enterprises will set its bar higher up in the coming years, when recently discovered coal sites begin production.

Turkish Hard Coal Enterprises which was unable to make it to the list last year, however came 347th this year, completed the year 2012 taking a financial bath due to 529 million 347 thousand Turkish lira of expenditure compared to its net sales of 305 million 199 thousand Turkish lira.

Park Electricity Generation Mining Industry, İston İstanbul Concrete Elements and Ready Mixed Concrete Corporation and Eti Krom Inc. have also made it to the list of 500 largest companies this year, although they failed to do so last year, just like Turkish Hard Coal Enterprises.

Although Anadolu Glass Industry and Trakya Glass Industry experienced a downfall in their profit volume ratios; they ranked higher on the list compared to that of 2011.

The aggregate net sales of the 33 companies listed below amounts to 19 billion 156 million Turkish lira which correspond to the 3.1% of the net sales of all the companies on Fortune’s 500.

There are also (iron-steel industry, etc.) companies which are not cited in the list below which is cut out from Fortune’s 500, however operates in the mining sector although indirectly.

When we add such companies to the list, still a share of 10% within all of the net sales cannot be reached, which reminds us the importance of mining in the development of a country, as in the case of developed countries. The power a developed country’s economy of is vested in the listing of that country’s mining companies on the first 500 companies in higher numbers and upon higher earnings.

900 Million Dollar Investment to Soma

Hidro-Gen Enerji, a subsidiary within Kolin İnşaat, made a license application for the thermal power plant they are planning to build in Soma - Deniş coal field, for which they were the preferred bidder in royalty tender.

Hidro-Gen Enerji had the highest bid among 15 companies in the August 2012 tender and was the preferred bidder. The company is planning to invest 900 million dollar to the region by building a 150 x 3 MW thermal power plant.

The company’s investment will be 25% sourced from equity capital and 75% from external financing to obtain an annual 3 billion 942 million KW gross,

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3 billion 150 million KW net electricity production by the thermal power plant.

The coal field in Soma - Deniş, license no. İR:4168, that will feed the power plant is stated to bear 152 million tonnes of coal reserve and the calorific value of the coal in the field is said to vary in the 1,200 2,000 kcal/kg range.

Hidro-Gen applied to Energy Market Regulatory Authority (EPDK) for license and also took the required steps for Environmental Impact Analysis Report.

They are planning to use circulating fluidized bed type boiler in the thermal

September 2013

power plant and the plant will comprise three circulating fluidized bed type boilers, three electrostatic precipitators, fans, one chimney, desulfurization system, switchyard, steam boiler, coal storage area, coal feeding systems, fly ash and bottom ash silos, cooling tower, one steam turbine and a generator.

According to the contract, the company is required to pay 4.69 krş/KWh royalty to Turkish Coal Enterprises and complete the construction of the plant within 6 years. Power plant is expected to provide 900 employment in the construction phase and 250 in the operation phase.

Pilot Gold Q2 2013 Highlights

Pilot Gold Inc. reported its financial results for the second quarter ended June 30, 2013, and provides an update on activities highlighted by continued strong gold and silver drill results at TV Tower’s KCD target, the launch of drilling at TV Tower’s oxide gold Kayali target, and the resumption of drilling at

Kinsley Mountain, Nevada.

“We believe the quality of our projects, our proven team and healthy treasury are strong differentiators in today’s market, and position Pilot Gold as a standout in the sector,” stated Matt Lennox-King, President and CEO, Pilot

Gold. “We will continue to build on our success in the second half of 2013, with significant exploration drilling of an additional 29,000 metres at our priority projects, and expect to meet key resource and permitting milestones by year end.”

Eurasian Minerals Announces Option Agreement to Sell the Akarca Gold-Silver Property Eurasian Minerals Inc. (EMX) announced the execution of an option agreement to sell the Akarca property in northwest Turkey for a combination of cash payments, gold bullion, work commitments, and a royalty interest, in June 2013. The agreement gives Çolakoglu Ticari Yatırım AŞ, a privately owned Turkish company, the option to acquire EMX’s 100% owned subsidiary, AES Madencilik A.S. (“AES Turkey”), a

Turkish corporation that controls the Akarca property. EMX looks forward to working with Çolakoglu to further advance the Akarca project towards resource delineation while exploring for new discoveries on the property. The Akarca project consists of six separate epithermal gold-silver mineralized zones occurring within a district-scale area. Gold and silver mineralization occurs as both structurally focused

vein-style, as well as disseminated-style mineralization in silicified zones.

EMX announced its second quarter 2013 results in August, which are available on SEDAR at www.sedar.com, on the U.S. Securities and Exchange Commission’s website at www.sec. gov and on Eurasian’s website at www. eurasianminerals.com.

Aldridge Completes its Fully Owned Yenipazar Project’s EIA Report Aldridge Minerals Inc. announced that it has completed the Environmental Impact Assessment Report (“EIA Report”) for its Yenipazar Project in central Turkey.

The Company has submitted the EIA Report to the Ministry of the Environment and Urbanization in Turkey, initiating the final stage of the EIA approval process.

Aldridge earlier successfully completed an initial application defining the scope of the proposed project as well as a public consultation process.

The completion of the EIA Report, which is based on over two years of baseline studies, fieldwork, and analysis by numerous consultants and the Aldridge team, represents a significant milestone in the development of the Yenipazar Project. Following receipt of the EIA permit, Aldridge will proceed to apply for construction, operating and other required permits. In June Aldridges announced the exercise of its option to earn a 100% working interest

in the company’s flagship Yenipazar Property in central Turkey. Aldridge completed the earn-in by delivering the Yenipazar Feasibility Study to Alacer Gold Corp. Alacer retains a 6% net profit interest in the Yenipazar Property until such time as operational revenues reach the amount of 165 million dollars.

When revenues exceed this threshold amount, the NPI will increase to 10%.

Çöpler M+I Resource Increases to 8.5 Million Ounces of Gold Alacer Gold Corp. announced an updated mineral resource estimate for its Çöpler gold-silver-copper deposit in Turkey, in June 2013. The updated Çöpler resource estimate has resulted in measured and indicated (“M+I”) resources increasing to 194.2 million tonnes at a grade of 1.4 grams per tonne gold, containing a total of 8.5 million ounces (inclusive of reserves) as at June 30, 2013.

Alacer announced also its second quarter production at Çöpler. Mr. David

Quinlivan, President and CEO stated, “Our flagship Çöpler Mine achieved record quarterly gold production of 68,195 ounces in Q2 2013, which is 10,395 ounces or 18% more than the previous record. In this challenging gold price environment, Çöpler provided strong cash flow of 41 million dollars, before taking into account approximately 14 million dollars in ‘one‐time’ capital expenses for SART, clay sizer and the agglomerator during the quarter. Çöpler’s average Total Cash

Costs were 395 dollars per ounce. The balance sheet remains strong, finishing the quarter with 268 million dollars in cash, including 50 million dollars in Australia. The current sale process for our Australian assets is ongoing and in accordance with international accounting standards we are reporting these assets as Discontinued Operations. We are continuing to reduce costs across our business as well as evaluating how best to optimize gold production going forward.”

September 2013

9

Aksa Wins the Karlıova Coal Field Tender Aksa Enerji AŞ won the management rights to 3,167 hectares of 88,662,000 lignite coal reserve bearing field in Karlıova, Bingöl, that is owned by Turkish Coal Enterprises (TKİ). Aksa Enerji will establish a minimum 150 MW electric power plant in the field specified in the tender and produce energy using the extracted coal. According to specifications of the tender, the company will complete investments and start to operate in the first 6 years after

the contract is signed.

Among the three bidders, Aksa Enerji made the highest bid of 3.2 kuruş per kilowatt-hour royalty and won management rights of the field for 30 years. The second highest bid was 1.53 kuruş by Flamingo Bio Yakıt Ltd. and Difer AŞ. was the third bidder with 0.77 kuruş.

In relation to our current knowledge of the field and modern technologies, much

more coal is expected to be produced with surface mining techniques.

The entirety of the coal that can be extracted from the field has the quality to be utilized in the thermal power plant.

Present coal potential can feed a power plant with upwards of 150 MW power for 30 years.

The company also has an ongoing 270 MW coal power plant project in Göynük, Bolu.

Eti Maden Overtakes Global Market, Passing Rio Tinto Eti Maden overtook US based Rio Tinto that had been the captain of the industry until recently, by increasing production of boron products and exporting 16 boron end products to 84 countries. As Eti Maden gradually strengthened its presence in the global market in the last couple of years, Rio Tinto’s market share receded to 23% by 2012 while Eti Maden’s reached 46%.

Orhan Yılmaz, general manager of Eti Mine Works that almost doubled the market share of its competitor,

reminded that the mining giant Rio Tinto owned 40% of the global boron market and stated that they increased their share against Rio Tinto by investing in research and development.

Adding that they have obtained a new boron product as a result of a 5-year-long study, Yılmaz claimed that this product has big demand in the iron-steel sector. The product they have presented to the market just 3 months ago is purchased by 9 iron steel firms, Yılmaz claims, explaining

that it increases the steel quality and decreases the arc furnace waste storage costs.

General manager also mentioned the big vehicle park of Eti Maden, stating that their practice involves earthmoving 100 million tonnes of soil each year. In this context, Yılmaz explained they have started to use locally manufactured equipment, due to a 2008 decision, and doing so they have saved 32 million years in 5 years.

Hattat Holding Enters into Agreement with the Chinese for Hardcoal Mine in Amasra Hattat Holding signed contract with China Coal Construction for extraction of hard coal from its field in Amasra Bartın, to be used at 2.640 MW thermal power plant that they are also planning to build on the same site.

Targets being 5 million tonnes/year in the first years and 10 million tonnes/

year in the coming years, underground coal is anticipated to be extracted by underground and above ground machinery and equipment from Europe and China. Project is planned to be completed in 10 years with a total investment of 700 million dollar and 11 thousand employment opportunities.

Hattat Holding has invested 310 million dollar in Amasra - Bartın Hard Coal Project so far. Planning to reach a gallery inclined shaft length of 24 km at the end of the project, Chinese Datong is opening galleries of total 11 km and three 8 m diameter deep holes of up to 750 m with its 180 staff.

950 Million Tonnes of Lignite Reserve Found in Dinar MTA (General Directorate of Mineral Research and Exploration) discovered a lignite reserve of 950 million tonnes in Dinar, Afyon as a result of prospecting and development studies. A 3,500 MW thermal power plant is planned to be built, providing 6,000 - 7,000 job opportunities, in the region.

Energy and Natural Resources Minister Taner Yıldız has announced in a written statement that this investment involv-

10

ing the local high-calorie lignite will serve not only Afyon but Turkey. Adding that they invested 1.2 billion Turkish liras to environment for thermal power plants in the last decade, Yıldız stated “We are not investing at the expense of the environment but use clean coal technologies in these enterprises together with environmental investments. In the last decade we invested 1.2 billion Turkish liras in the thermal power plant environment. We are plan-

September 2013

ning to invest more than 1 billion liras in the next term, as well. These investments are associated with old power plants. For the new thermal power plant constructions, we made completion of these investments compulsory.

Flue gas desulfurization plants, electrofilters, ash storage field investments, air quality monitoring stations and waste water treatment plants are all completed at this stage”.

Yıldırım Group’s Latest Acquisition is Mechel’s Chrome Assets Turkish conglomerate YILDIRIM GROUP’s latest acquisition is Mechel Chrome, the chrome division of Russian Mechel. After a very competitive international tender among eight bidders, YILDIRIM is now the owner of Mechel Chrome’s vertically integrated Voskhod Mining Plant in Kazakhstan and Tikhvin Ferroalloys Plant (TFP) in Russia.

Located in northwest Kazakhstan, the Voskhod chrome ore mines and chrome concentrate plant, which began production in July 2009, feature an underground state-of-the-art mine and a modern ore processing plant. The mine has total reserves of 21 million tonnes of chrome ore. The plant’s chrome ore boasts one of the highest Cr/Fe ratios in the world, at 3.5 - 3.8. Voskhod is also responsible for sourcing chrome concentrate for TFP. The plant currently has an annual beneficiation capacity of 1 million tonnes of raw ore, which can be increased up to 1.5 million tonnes.

Meanwhile, TFP, which is located 200

km southeast of St. Petersburg in Tikhvin, is one of Russia’s largest producers of high-carbon ferrochrome (HC FeCr) with a chrome content of 69.5%, accounting for 22% of the country’s production volume. As a relatively young plant that began production in April 2007, TFP is also renowned for being the most modern ferroalloy plant in the CIS, with advanced facilities like a gas cleaning system for the furnace, briquetting line and slag processing unit, as well as one of the lowest power consumption per ton rates in the CIS. Combined, Voskhod and TFP’s assets supply the ferrochrome, chrome chemicals, alloy steel, foundry and stainless steel markets of Russia, Europe, US, China and Far East Asia.

“After the acquisition of Mechel’s chrome division, YILDIRIM GROUP reached a consolidated 520,000 tonnes production capacity for high-quality high carbon ferrochrome (HC FeCr) in Turkey, Sweden and Russia,” said Robert

Yüksel YILDIRIM, President and CEO of YILDIRIM GROUP, about the investment.

“Therefore, YILDIRIM GROUP is the only global high carbon ferrochrome producer in three different countries in order to hedge the political, economic and other risks for its global long-term stainless steel customers. In addition, YILDIRIM GROUP’s total annual chrome ore production will now reach 2.5 million tonnes in Turkey and Kazakhstan for its internal ferrochrome production and chrome ore exports.”

As the owner of Eti Krom Inc. in Elazığ, Turkey, as well as Vargön Alloys AB in Vargön, Sweden, YILDIRIM GROUP is already the world’s largest hard lumpy chrome ore producer and the second biggest high-quality HC FeCr producer, after Eurasian Natural Resources Corporation (ENRC). YILDIRIM GROUP is also active in port, shipping and shipbuilding, fertilizer, coal and coke, energy, real estate development and private equity businesses.

Columbus Copper and First Quantum Enter into Project Generation Alliance Columbus Copper Corporation (formerly Empire Mining Corporation) announced in its press release dated 8 May 2013, that it has entered into a project generation agreement with First Quantum Minerals Ltd (FQML).

The agreement provides 250,000 dollar in reconnaissance funding to Columbus Copper over a twelve month period for the objective of identifying prospective copper dominant projects for acquisition in the European Balkan Peninsula

and in Turkey, in which FQML may then elect to earn an interest by funding exploration spending. Specifically, if reconnaissance identifies a prospective mineral project, Columbus Copper will own the project and FQML will have the right to earn up to a 70% interest therein by entering into an option and joint venture agreement with Columbus Copper that requires FQML to fund up to 5 million dollar in staged exploration expenditures. The agreement may be terminated by either party on 60 days’ notice.

David Cliff, the President and CEO of Columbus Copper, stated “this generative agreement presents an excellent opportunity for Columbus Copper to strengthen its exploration and development portfolio in the Balkans and Turkey at minimal expense to the company. We are very pleased to be working with First Quantum under this agreement, which utilizes the local knowledge and experience of our exploration team.”

Stratex Announced its Q2 Figures AIM-quoted exploration and development company Stratex International Plc focused on gold and base metals in Turkey, East Africa and West Africa, announces its interim results for the six - month period ended 30 June 2013.

According to the press release, Bahar Madencilik now vested at 55% in the

Altıntepe project for 396,019 euro and has confirmed its decision to start production, subject to permits. On receipt of the Forestry Permit, Bahar confirms that construction will commence immediately. Initial production target has been identified at three million tonnes averaging 1.34 g/t Au, plus half

million tonnes of low-grade material averaging 0.35 g/t Au, over 40 months.

Lodos Maden Yatırım Sanayii ve Ticaret AŞ (“Lodos”) now vested at 61% in the Muratdere project following completion of 7,900 metres of diamond drilling and the payment of 500,000 dollar to Stratex.

September 2013

11

New Copper Reserve in Küre It is reported that a new copper reserve of 25 million tonnes has been discovered in Eti Copper Co.’s copper enterprises located in Küre District of Kastamonu. According to Anadolu News Agency, in his related speech, the Governor of Kastamonu Erdoğan Bektaş said that the copper reserve of

25 million tonnes recently discovered in Küre is highly significant considering Turkey’s huge demand for copper.

Eti Copper Co. Küre General Director Ahmet Tezcan expressed their hope that the reserve would reach 30 million tonnes subsequent to the studies to be

Big Investment to Silopi Official opening ceremony of the first unit of the thermal power plant, foundation of which was laid by Ciner Group in 2006 and which has been producing electricity for some time, took place on March 9th, together with foundation stone laying ceremony of second and third units, with the participation of Prime Minister Recep Tayyip Erdoğan and Minister of Energy and Natural Resources, Taner Yıldız.

With the official opening of the 135 MW first unit of the power plant, the

company announced the second and third units to start to operate in 2014 and the total investment to reach 800 million dollar when the project is completed. When all units are functioning, the power outcome is expected to be 405 MW, which corresponds to 1% of the country’s established power. Locally produced asphaltite will be used as fuel for the thermal power plant that is expected to produce 2.7 billion KW/hour of electricity. Employment opportunity for 2000 people will have emerged upon power plant operating at full capacity.

carried out, and added “We have been discovering new reserves upon the exploration activities conducted throughout the past 3 - 4 years and our goal is to unveil the final reserve numbers during 2014 - 2015 and to initiate ore production in Turkey’s largest and deepest shaft as of 2015.

Meanwhile, Ciner Group owned Park Elektrik AŞ that manages the asphaltite field in the region for Silopi Thermal Power Plant has announced that Tellioğlu Petrol İnşaat Nakliyat Ltd. is the selected preferred bidder for stripping in the asphaltite field. Another note from the company’s statement is that Park Elektrik AŞ Administrative Board has decided on a one-year contract with Tellioğlu İnşaat.

Yıldızlar Holding Invests in Afghanistan It has been reported that Eti Gümüş AŞ, a subsidiary of Yıldızlar Holding has won a gold mine tender of 4 distinct fields. Ministry of Mines of Afghanistan announced that the Kabul-based Turkish - Afghan Mining Company (TAMC) is one of the preferred bidders of the tender initiated last November. TAMC

is 51% owned by Eti Gümüş and 49% Afghan Gold and Minerals Company.

Each covering 250 km2, fields associated with this tender are situated within the Badakhshan Province, sharing borders with Tajikistan and Pakistan.

with its richness in gold, silver and copper. Previous accounts by various newsagents have stipulated Afghanistan to harbor 1 trillion dollar-worth of ores and minerals and 25 billion dollar worth of gold.

The fields fall within a region known

Miners Waiting for Solution on Circular Problem The circular, published on the Official Journal on 16th of June, 2012 with the signature of Prime Minister Recep Tayyip Erdoğan, for a requirement of authorization at the Prime Ministry level for acquisition, leasing and utilization of every publicly owned immovable property has been causing trouble in the mining, energy and telecommunications sectors.

In its April 8th 2013 edition, Dünya Gazetesi published thoughts and comments of Association of Mining Sector Presidents’ Concil (MSBK) president İsmet Kasapoğlu on the matter. Kasapoğlu once again called for discontinuance of this practice and stated that their year-long strife for a solution has been to no avail. Adding that they are preparing to send a new letter to Ministry of Energy and Natural Resources

12

regarding this Prime Ministry circular, Kasapoğlu will explain the impairment of the sector again.

Kasapoğlu pointed out that hundreds of applications sent to Prime Ministry from General Directorate of Mining Affairs (MİGEM) and General Directorate of Forests have been waiting for approvals for months and the sector has not received any feedback on the authorizations. As this has been adversely affecting the industry, Kasapoğlu stated his knowledge as to many investors that are new to mining industry or having plans to invest in this sector have decided to fall back and the ones that have been long time investors in the sector have started reconsidering. As he claimed that the negative results of the practice of the circular will be

September 2013

more apparent in 2 or 3 years, Kasapoğlu warned that the projects have become inapplicable and the facilities may soon need to stop operating. He stated that, according to the Mining Law, the licences will become invalid in case the authorizations are not received in 3 years and the delays due to the circular have also resulted in such problems.

Kasapoğlu stressed the fact that mining industry matters in other parts of the world are regulated by static and longterm rules; pointing out to a possible period of 15 years between prospecting the ore and managing it, Kasapoğlu added that frequently changing laws and such circulars may halt investments in the mining industry.

2012 Tax Champion Mining Companies Turkey’s corporate tax champions of 2012 have been announced. The comparison between the Presidency of Revenue Administration’s list of top 100 companies to have declared the

highest corporate tax throughout Turkey during the taxation period of 2012 and that of 2011, reveals a considerable decline in the number of mining and mining-related companies on the list.

2012 Corporate Tax Listing of Turkey List of Mining and Mining Related Companies in Top 100 Rank

Name

10 companies which produce minerals or use minerals as raw materials in production have managed to make it to the list while this number was 17 last year.

2011 Corporate Tax Listing of Turkey List of Mining and Mining Related Companies in Top 100 Tax Assessment (TL)

Rank

Tax Assessment (TL)

Name

19

Eti Mine Works General Management

149,942,987.11

15

Eti Mine Works General Management

163,438,694.70

20

Tüprag Metal Mining Inc.

128,520,831.91

17

Ereğli Iron and Steel Fab. Inc.

141,289,717.62

21

Koza Gold Operations Inc.

122,801,726.55

23

Tüprag Metal Mining Inc.

111,105,538.15

39

Tki Corporation Ege Lig. Ins.

63,561,960.30

27

Koza Gold Operations Inc.

99,883,961.43

41

Tki Corporation Güney Ege Lig.

61,816,348.55

35

Çayeli Copper Operations Inc.

67,615,454.23

44

Eti Copper Inc.

58,371,051.16

42

Erdemir Mining Industry Inc.

54,518,009.38

48

Çayeli Copper Operations Inc.

52,075,344.23

46

Soda Industry Inc.

45,899,090.23

55

Erdemir Mining Industry Inc.

48,253,594.05

55

Tki Corporation Güney Ege Lig.

41,446,955.47

64

Kardemir Karabük Iron and Steel

42,200,901.83

56

Eti Copper Inc.

41,198,981.55

96

Akçansa Cement Industry Inc.

28,846,719.64

61

Trakya Glass Industry Inc.

37,911,588.44

64

Tki Corporation Seyitömer Lig.

36,151,082.35

This year, as in the case of past three years, Eti Mine Works came first among the mining companies, however receded to the 19th place on the list of 100 companies due to the approximate decrease of 8% in its accrual amount.

Tüprag Metal Mining which ranked second among the mining companies advanced to the 20th place among the top 100 companies paying a tax of 128 million 500 thousand Turkish lira, upon an 16% increase in its accrual amount.

Tüprag ranked 23rd last year. The tax ratio of Koza Gold Operations, owner of the third place on the list this year, has increased by 23% compared to last

year and reached 70 Tki Corporation Ege Lig. 33,934,201.88 122 million 800 82 Çimsa Cement Industry Inc. 29,448,195.07 thousand Turkish 89 Eti Silver Inc. 26,752,974.77 lira. Koza came 21st 94 Park Electricity Generation Mining Industry Inc. 25,470,694.19 among the top 100 companies.

The 95 Kardemir Karabük Iron and Steel 25,034,211.43 climb of Tüprag 96 Eti Aluminium Inc. 24,774,267.76 and Koza on the list could be attributed to the high course of was only 756 million Turkish lira this year. gold prices during the year 2012.

Bearing in mind that this amount of paid taxes belongs only to 10 companies, one An overview of the table would indicate can easily comprehend how profoundly that, during the taxation period of 2011, the mining sector would contribute to companies associated with mining paid the country’s economy, if it advances. the government an aggregate tax of 1 billion Turkish lira, whereas this number

Rubicon Resources Established a Base in Ankara, Turkey According to the update on Turkish focus dated 19 March 2013, it has now established a Turkish registered subsidiary company and assembled the core of a high quality in-country team to assist in the accelerated programme of project assessment, exploration and development in Turkey, Rubicon has

targeted project interests in gold/copper and base metals and is in advanced discussions for initial acquisition.

So far, Rubicon has conducted field visits to projects containing low and high sulphidation epithermal, porphyry related and VMS mineralized systems in

Western, Central and Central Eastern Turkey. Rubicon is targeting projects that have existing ore grade intersections that are held by both international companies and local Turkish groups that are seeking partners with exploration expertise.

First Quantum Acquired 92.74% of Inmet Shares Tendered First Quantum Minerals Ltd. announced on April 2013 that a total of 65,206,044 common shares of Inmet Mining Corporation representing 92.74% of the Inmet shares had been validly tendered to the First Quantum’s offer to acquire all of the shares of Inmet Mining Corp, winning a 5.1 billion Canadian dollar hostile battle for control of one of the

world’s largest untapped copper deposits - Cobre Panama.

Commenting upon the offer’s successful completion, Philip Pascall, First Quantum’s Chairman and CEO, said: “We are delighted that our offer was met with such overwhelming acceptance by Inmet shareholders. We wish

to once again thank them for their tremendous support throughout the course of our offer and to welcome them as new shareholders of First Quantum. We look forward to a bright future in which, together, we turn our vision of a new global copper leader into a reality.”

September 2013

13

Tenth Development Plan (2014 - 2018) Adopted in the Turkish Grand National Assembly The tenth development plan submitted to the Turkish Grand National Assembly (TGNA) has been adopted. In his presentation before the TGNA Commission on 18 June 2013 Tuesday, The Turkish Minister of Development Cevdet Yılmaz noted “Exportation in our mining sector has risen from 382 million dollar to 3.2 billion dollar in the past decade. Between the years 2002 - 2013, the investment allocations for petroleum, natural gas, mineral and geothermal resource exploration has been significantly increased. We are going to amplify explorations in the mining sector. In his regard, we aim to raise the quantity of drilling from 1.3 million meters to 3 million meters.”.

The part regarding the mining sector in the Tenth Development Plan is as follows:

STATUS ANALYSIS

While the share of Turkish mining sector within the GDP was 1.2% in 2006, it has risen to 1.5% in 2012. The aggregate exportation in 2006 was 1.1 billion dollar, whereas in 2012 it has reached to 3.2 billion dollar and a substantial part of this exportation consists of natural stone, copper, zinc, chrome, feldspar, and boron. The aggregate importation was 22 billion dollar in 2006, however in 2012 it has reached to 42.2 billion dollar and of this amount, an about 39.5 billion dollar pertains to crude oil and natural gas, 1.1 billion dollar to anthracite and 1.1 billion dollar to iron.

The financial resources allocated to investments in exploration of mines, raw materials for energy and geothermal resources has been increased significantly, with a view to mitigating external energy dependence and meeting raw material needs in industry. In this framework, while the funds allocated in the year 2006 to the Directorate General of Mineral Research and Exploration (MTA) for mineral and geothermal resource explorations during term of 2006 - 2013 was 32 million Turkish lira, in 2013 this amount has been increased to 200 million Turkish lira, and the funds allocated to Turkish Petroleum Corporation (TPAO) for petroleum and natural gas exploration has been increased form 450 million Turkish lira to 1.050 million

14

Turkish lira, during the same term. In an attempt to increase domestic production in petroleum and natural gas and to ensure uninterrupted activities of exploration, a seismic research vessel was procured in 2012. Moreover, the petroleum and natural gas exploration activities initiated abroad by the Turkish Petroleum Corporation (TPAO) and Petroleum Pipeline Corporation (BOTAŞ) are currently underway. In addition, the full-fledged national research vessel of the Directorate General of Mineral Research and Exploration (MTA) is under construction.

The rapid growth trends of developing countries, particularly China and India, have cast an effect on the global mining market and caused a profound increase in the mine prices. The leading developed and developing economies such as the USA, the EU, Japan, South Korea and China, conduct studies on demand and supply-focused management of raw materials and develop and implement their respective raw material management strategies. This clearly indicates that an initiative in this regard must be developed in our country, as well.

chrome of which our country has great potential, are integrated in the economy providing a higher added-value.

In the mining sector, there is an ongoing need for the enhancement of license guarantee, simplification of complex and prolonged permit processes, increasing the added-value upon domestic processing of imported mines, scaling up exploration activities particularly in the private sector, restructuring and improving the efficiency of public organizations, planning of mining activities in coordination with activities and investments of other sectors, eliminating the problem of scale and technology in mining companies and enterprises.

GOAL AND OBJECTIVES

The fundamental goal is to soundly identify the mineral potential of our country, ensure supply guarantee for raw materials required for production and increasing the added-value upon domestic processing of mines with a view to amplifying its contribution to the economy.

POLICIES •

Upon the Law on Geothermal Resources and Mineral Waters which took effect in 2007 and the various amendments and alterations made on the Mining Law in 2010, the disarray in the legislation has been eliminated and the legal infrastructure for more efficient uses of such resources has been provided.

Exportation of boron products has risen, upon a significant boost, from 367 million dollar in 2006 to 797 million dollar as of 2012 and Turkey, with its 46% market share, has maintained its global leadership in boron products exportation. Furthermore, raw marble exportation has risen from 239 million dollar in 2006 to 881 million dollar in 2012. By virtue of the exploration activities carried out during the term of the Ninth Development Plan, the known lignite coal reserve has risen from 8.3 billion tonnes to 12.8 billion tonnes and 38 new geothermal sites have been discovered. Then again, it is essential to ensure that underground resources such as geothermal, lignite, marble, boron and

September 2013

•

•

•

In line with the objective of mitigating external dependency for energy production, petroleum and natural gas exploration activities within and outside the country will be accelerated, exploration activities to identify the potential for domestic resources such as lignite coal and geothermal will be maximized. Comprehensive research activities on shale gas will be ensured.

Domestic exploration and production of industrial raw materials such as iron ore, marble and boron will be prioritized.

A strategy will be generated for the secure supply of raw materials that are fundamental and critical for the Turkish economy. A system will be established to provide order in outflow of critical raw materials, mines and minerals.

With regard to the list of critical raw materials designated by countries and groups of countries, the exploration program for the exploration and production of raw materials in

•

•

•

Turkey, in particular Rare Earth Elements.

The harmonization of the mining sector with the legislation on labor safety and environment will be improved.

Domestic processing of mining products such as chrome and marble, and thereby increased addedvalue will be ensured.

Formation of global and competitive mining companies will be encouraged.

2006

2012

2013

2018

1.2

1.5

1.5

1.5

Mining Exportation (Billion USD)

1.1

3.2

3.8

7.0

Boron Exportation (Billion USD)

0.4

0.8

0.9

1.5

Drilling Quantity (Thousand Meter)1

500

1,000

1,300

3,000

Visible Lignite Reservoir (Billion Tonnes)

8.3

12.8

14.0

18.0

Ratio of Mining Added-Value to the GDP (Current rates, %)

Table 26: Advancements and Objectives in Mining Sector Source: Data on the years 2006 and 2012 are cited from Turkish Statistical Institute (TurkStat) and the Ministry of Energy and Natural Resources. Data on the years 2013 and 2018 are the estimations of the Tenth Development Plan.

(1)

The data on the years 2006 and 2012 are estimated values.

Austrian RHI Buys Cihan Group’s Magnesite Enterprise Austria’s leading refractory material producer RHI AG officials announced they have been negotiating to buy the magnesite enterprise owned by Turkmag, one of Cihan Gruop companies based in Kocaeli, as well as the due mineral

rights. Noting that the official process was underway, the statement referred to an amount of 36 million euros as the price offered for the enterprise located in Aşakale district of Erzurum, with a reserve of 85 million tonnes and annual produc-

tion capacity of 120 million tonnes.

The statement by the Austrian refectory producer also indicates that the company aims to extend its raw material supply chain via procurements.

Mine Producers in İstanbul Chamber of

Industry 500 Announced The awaited “Top 500 Industrial Enterprises of Turkey - 2012” report issued each year for the past 45 years by İstanbul Chamber of Industry (ISO) has been announced. In the press confer-

ence, the Head of the ISO Management Board Erdal Bahçıvan noted that the sectors which were regarded as the backbone of the industry 30 years ago have now fallen behind, whereas the ones

Mining Companies in Turkey’s Top 500 industrial Enterprises of 2012 Rank By No. In Top 500 In 2012 15

Firm or Enterprise

Net Sales Revenue (TRY)

on the lower ranks on the list in the past have become the drivers of the industry today. In parallel with Bahçıvan’s statement, the mining sector has also manifested an increase this year.

Mining Companies in Turkey’s Top 500 industrial Enterprises of 2012 Rank By No. In Top 500 In 2012 241

Firm or Enterprise Eti Silver Inc.

Net Sales Revenue (TRY)

General Directorate Of Turkish Coal Enterprises

2,886,203 ,748

348,220,692

41

Eti Mine Works General Management

1,487,462,707

284

Adana Cement Industry Inc.

287,034,089

67

Tüprag Metal Mining Inc.

1,085,155,678

290

Çimentaş İzmir Cement Factory Inc.

283,878,625

72

Koza Gold Operations Inc.

1,041,141,929

295

Soma Coal Enterprises Inc.

281,483,223

75

Akçansa Cement Industry Inc.

992,214,050

302

General Directorate of Turkish Hard Coal Corp.

274,618,593

81

Soda Industry Inc.

844,690,081

311

BATIÇİM Batı Anadolu Cement Industry Inc.

262,497,945

88

Çimsa Cement Industry Inc.

799,027,860

339

Seranit Granite Ceramik Industry Inc.

241,744,020

108

Eti Copper Inc.

684,731,587

346

Konya Cement Industry Inc.

235,685,873

119

Kaleseramik Çanakkale Kalebodur Ceramic Industry Inc.

598,072,049

356

Ünye Cement Industry Inc.

231,117,088

364

Park Electricity Generation Mining Industry Inc.

225,534,896

155

Limak Cement Industry Inc.

496,166,768

402

Mardin Cement Industry Inc.

206,067,889

157

Çayeli Copper Enterprises Inc.

495,019,529

408

GÖLTAŞ Cement Inc.

203,142,486

160

Erdemir Mining Industry Inc.

481,032,377

168

Aşkale Cement Industry Inc.

468,812,357

169

Nuh Cement Industry Inc.

468,522,565

199

Limak Batı Cement Industry Inc.

404,392,102

200

Çimko Cement and Concrete Industry Inc.

402,802,831

201

Eti Soda Inc.

402,785,357

426

Eti Chrome Inc..

195,537,016

427

Traçim Cement Industry Inc.

194,933,831

432

Adoçim Cement Concrete Industry Inc.

193,605,284

434

Bolu Cement Industry Inc.

193,361,258

447

KÇS Kahramanmaraş Cement Concrete Industry and Mining Operations Inc.

189,138,966

208

As Cement Industry Inc.

390,120,573

453

Denizli Cement Industry Inc.

188,265,728

222

Esan Eczacıbaşı Industrial Raw Materials Inc.

372,937,609

476

Demir Export Inc.

178,070,546

September 2013

15

Profile www.miningturkeymag.com

Chairman’s Message Of AME-Jamieson AŞ “The mining industry worldwide is undergoing unprecedented changes and influenced by the waning Chinese demand, high volatility of commodity prices and rising exploration costs, it’s becoming harder for mining companies to predict future demand and assess an increasingly complicated choices to satisfy the shareholders,” commented Alan M. Clegg, Deputy Chairman of AME-Jamieson Group (AMEJ).

David Jamieson, AMEJ’s Chairman, said “There are also strong signs of deferring investment and expansion projects globally. However, continued investment in parallel to increasing operational efficiency, productivity, mitigating risk and monitoring compliance in addition to appropriate effort on health, safety and environmental (HSE) management is necessary to enable companies to stabilize the volatility and continued business success.”

Thus Jamieson Group in close cooperation with the globally experienced and locally focused Afrasia Mining and Energy Consulting (Afrasia or AME) from Ankara is focusing its efforts in Turkey and the region within which Turkey is situated, i.e. North Africa, Eastern Europe, Balkans, Middle East and Turkic Republics to provide better and high quality services to its clients.

Despite Turkey’s amazing diversity of industrial mineral deposits and varied base metal reserves, the mining industry is still in its development phase and infancy. Due to constantly increasing domestic and world demand and also with an increasing number of local and foreign participants playing active roles in shaping the growing market, the mining industry in Turkey has flourished rapidly in the last 20 years as one of the world’s most promising

16

and dynamic mining destinations.

1.

As a new organization in Turkey, AME-Jamieson would like to maintain the competitive advantage even increase it with integrity in services from management consultancy to full fledge technical services in mining.

2.

The second goal is to increase our stronghold in the region to further support regional industries. This will further allow us to share best practices in the region for our new and existing valued clients. Having a truly global footprint ensures that we can support our clients with impeccable service quality wherever they may be located.

Major opportunities exist in upgrading facilities for mining coal, zinc, copper, gold and silver, as well as for iron ore, bauxite lead and nickel.

In mining sector, there is growing demand for environmental engineering and consulting services include process development, process-control, chemical and metallurgical analyses, reserve estimation and underground mining operation, operational efficiency and also specialized auditing services to fulfil local accounting and international compliance requirements.

David Jamieson commented further that, “These complexities put burden on project, design and operations teams and in addition there is an ever increasing demand for effective management of operations, production and supply throughout the mine and plant lifecycle.

AMEJ offers a unique solution to identify leaks and losses and close gaps to enhance productivity and profitability.”

Alan M. Clegg added, “Also without monitoring compliance, and indeed optimizing business performance based on the intelligence gained from careful scrutiny of operations, processes and activities, businesses can struggle to survive. In Turkey we have many medium to large companies in the sector in this position with low or negative equity making it impossible for them to raise further investment funding. There only way out is to work their way out through business improvement at the existing root status.”

Jamieson Group’s efforts with Afrasia Mining and Energy Corporation have 2 goals to achieve.

September 2013

Our new JV Corporation, AME Jamieson AŞ with its partners has experienced consultants in all industrial operational areas ready to assist in management consultancy, gap analysis and assessments, business process design and changes in every step of the Mine and Plant Life Cycle including exploration, engineering and project development.

We look forward to working with all our current and prospective clients to assist them to grow and flourish their businesses during this challenging economic period.

CONTACTS AME-Jamieson AŞ Address : Mustafa Kemal Mah. 2146. Sok. Demirler Atlas Plaza No : 14 / 16 Çankaya Ankara - Turkey Phone : +90 (312) 219 44 15 Fax : +90 (312) 219 44 59 E-Mail : info@amejamieson.com Website : www.amejamieson.com

Interview www.miningturkeymag.com

Çayeli Bakır İşletmeleri: 30 Years Of Success In Black Sea

Çayeli Bakır İşletmeleri AŞ (CBI) is whollyowned subsidiary of First Quantum Minerals and operates Çayeli mine located on the Black Sea coast of northeastern Turkey. Çayeli mine is an underground copper and zinc operation and produces copper concentrate, copper and zinc bulk concentrate and zinc concentrate. Çayeli is the largest underground base metals mine in Turkey. It produced its first concentrate in 1994 and is expected to operate until at least 2019. Çayeli is an example of mining and metallurgical experience translating to achieving throughput that exceeds design capacity, as Çayeli’s initial design mill capacity of 650,000 tonnes per year has grown to 1,200,000 tonnes per year.

This year, its CBI’s 30th year anniversary.

For this reason Mining Turkey Magazine made an interview about CBI and Turkish mining sector with the managing director of CBI, Iain Anderson, who has been living in Turkey over a decade and has joined CBI in 2009.

Mr Anderson, you are one of the well-known familiar faces of the Turkish mining sector.

How would you describe the changes and evolution of the Turkish mining sector as someone who has been closely observing it for more than 10 years?

(IA:) I have witnessed many positive

developments in both Turkey and our mining sector since I have been living here. There is certainly a lot more interest in the sector; this is evident from the amount of exploration drilling that is occurring today compared to levels that were almost ‘stagnate’ about 10 years ago. Interest in the sector is being driven by both domestic and foreign investors and it is easy to see that working standards and the level of professionalism across the sector is steadily improving as companies adopt modern exploration, mine planning and operating methods.

I’m happy to say that the future of mining in Turkey looks healthy and the sector will make an important contribution to the national economy if the government is going to achieve the ambitious growth targets it has set by the 100th anniversary of the Republic in 2023.

What do you think are the challenges and the advantages of being in this sector?

(IA:) Our sector certainly faces chal-

lenges probably the greatest challenge is perception management. Many people still believe that mining companies are making super profits at the expense of people and the environment.

Mining is and will remain a risky business. My view is that the development of a new mine is the biggest challenge faced by any mining Company. Mining is controlled by commodity prices and in times of declining demand for our products it is only the most cost effi-

Remotely operated LHD in the underground

18

September 2013

cient and best run operations that can survive, it is important to understand these risks and get your financial model right before embarking on a new mining venture. During times of high commodity prices the best run operations face increased risks of resource nationalism and as we have seen in Australia recently additional taxes that are not applied to companies working in other sectors. Imagine we apply the same logic and increase taxes on a technology company that invents the latest and most profitable product. Of course this would have the effect of making investment in ‘Research and Development’ of new products less attractive. The same can be said for the mining sector; resource nationalism, increased mining taxes and delays in permitting a mining project make the sector less attractive for investment.

For me, the biggest advantage in working in the sector is the dynamic work environment. There are always new and improved technologies coming onto the market at such a rate it is hard to keep up with the latest developments.

A mine has a life cycle and things rarely if ever constant so for those of us who like change, problem solving and working as part of a team this is the biggest advantage mining has to offer.

Iain ANDERSON Managing Director of ÇBİ Drawing on a professional career that extends over 25 years, Mr. Anderson brings with him extensive handson engineering, maintenance and operational experience. Mr. Anderson started his career in 1985 as an engineer in the shipping industry. He moved to the mining industry in 1998 when he joined Waihi Gold Mine in New Zealand as a Graduate Mechanical Engineer. During the past 15 years, Mr. Anderson has worked in various mining-related roles of increasing responsibility including positions held at the Ovacık Gold Mine in Turkey, at Zarafshan Newmont in Uzbekistan and as General Manager at Crew Gold’s LEFA Corridor Gold Project in West Africa, Guinea.

Mr. Anderson joined Çayeli Bakır in January 2009. He is responsible for implementing First Quantum Minerals’ strategy and objectives in Turkey and is also a member of Çayeli Bakır’s board of directors.

Mr. Anderson obtained a Bachelor of Applied Science in Marine Engineering from the Australian Maritime College in 1989 and also a Bachelor of Mechanical Engineering from the University of Adelaide in 1998.

Mr. Anderson has been living in Turkey for more than 10 years. He is married to a Turkish citizen and became a citizen of Turkey himself in 2012. As a Black Sea resident Mr. Anderson has a life which is harmonized with the nature of Black Sea, he can often be found on a weekend cycling or hiking in the Kaçkar mountains with his family.

Managing Director, Iain Anderson

September 2013

19

CBI in numbers Year of Establishment (Incorporation)

1983

Initial Share Capital

183 million dollar

Total Investment to Date

350 million dollar

Annual Contribution to Turkey’s Economy (2012):

148 million dollar

Percentage of Annual Expenditure in Local Region (Rize):

45%

Total Direct Employment (2012):

492

Percentage of workforce from local region:

87%

Average Seniority of Employees:

10 years

Ranking on Corporate Tax Record Holders list (2012):

48

Ranking on TİM Mining Sector Exporters List

1

Total Number of Countries Product Exported (2012):

10

Major extracted minerals:

Copper and Zinc

Average Ore Mined and Processed per Year (2012):

1.2 million tonnes

Total Ore Extracted:

15.3 million tonnes

Current mine life:

2019

How would you locate CBI within this sector?

(IA:) It really depends on what criteria

you use to rank various mining operations. For me the best mine isn’t the one which generates the largest revenue or profit. It is my view that the best mines have to operate safely, sustainably and continue to operate when commodity prices fall.

In terms of our total production Çayeli Bakır is a ‘minnow’ (hamsie) compared to other mining operations located in

other parts of the world. While we are relatively small it is clear that Çayeli Bakır is highly regarded in Turkey and elsewhere because of our high standards and our longevity within the sector.

CBI is also considered as a school for the mining sector in Turkey. What is the reason for that?

(IA:) My employee number is 956. In

the years that Çayeli Bakır has been in operation we have employed in excess

of 1,000 employees many of whom have moved on into leadership roles with other companies throughout Turkey.

From the very beginning of Çayeli Bakır a great importance was placed on using the most modern and efficient mining techniques. To achieve this we had to make a significant investment in the training and development of our employees and this investment continues today. Our training academy is still training people to be better miners, electricians and mechanics.

We also have a policy of rotating key employees into different roles and we allocate funding for their professional development.

In addition to our emphasis on training and development, Çayeli Bakır is an extremely challenging mine to operate. We have poor ground conditions, the metallurgy of our ore is complex and our mine is located very close to a populated area. So anyone who works at Çayeli Bakır receives a good grounding in most of the challenging situations a professional miner will face.

Can you compare the production capacity and conditions of CBI with 20 years ago and today?

(IA:) Production of concentrate began in 1994. At that time the design capacity o the plant was 650,000 tonnes per year. In 2012 we achieved a production record with in excess of 1.2 million tonnes processed and this year we are on target to make a further 8 - 10% improvement resulting in another production record being set.

Engineers Kemal Karaoğlu and Emin Balcı

20

September 2013

One of our long term employees recently gave me some photos of the earliest days of Çayeli Bakır. It was clear that employees at that time were working under difficult conditions without the modern equipment that we now take for granted. If we compare the early days to today we could say a quantum leap in improvement has occurred.

The reality is that the improvement has been much more gradual with year on year improvement largely thanks to the efforts of every employee at Çayeli Bakır particularly those with a commitment to continuous improvement.

Which international standards do you apply in terms of Corporate Responsibility?

(IA:) There are many international Corporate Responsibility standards that can be applied to resource companies, many are similar and often there is overlap between different standards.

At Çayeli Bakır we use International Finance Corporation (IFC), the Mining Association of Canada Towards Sustainable Mining (TSM) and we have our own internal corporate standards that comprehensively cover these international standards as well has others such as the, Global Compact and International Council of Mining and Metals (ICMM).

In addition to following these international standards Çayeli Bakır was amongst the first companies, and only mining company, to ratify the charter of the Turkish Ethics and Reputations Society (TEİD) of which we are a member. We have also made application to the Association of Business World and Sustainable Development (İş Dünyası ve Sürdürülebilir Kalkınma Derneği ) to join the World Business Council for Sustainable Development.

What are the challenges in applying these standards to the local context?

(IA:) Increasingly society is becom-

ing more aware about Corporate Responsibility, what it means, and the benefits for the companies that implement these standards. There are a few challenges but these have nothing to do with local context. In fact having

Laboratory Technican Yılmaz Avcı

such standards in a local context is actually beneficial. Our challenges are educating employees and stakeholders on what these standards are and the amount of effort and discipline required to maintain our programs.

You have been the export champion of the mining sector for the last 3 years. What is the significance of this championship for CBI?

In one of the international events, I remember that there was a motto at CBI’s booth, saying that “Our real ore is our people”. What does that mean?

been recognized by the Turkish Exporters Assembly (TİM) and it was a great honour to receive these awards from our Prime Minister. For Çayeli Bakır it is recognition of the contribution our Company make to the Turkish economy and this is helpful in communicating the significance of our Company at a regional and local level to both employees and stakeholders.

(IA:) It might surprise you to learn

that on a daily basis I make very few of the decisions that are made in our Company. I’m pleased to say most of the decisions are made by our valued and capable employees and they deserve all the credit for Çayeli Bakır’s success. “Our real ore is our people” means that we value our employees and the contribution that they make to the success of our Company.

(IA:) Çayeli Bakır is fortunate to have

Which countries does CBI export its product?

(IA:) One of the strengths of the Turk-

ish Mining sector is Turkey’s location in relation to major smelters in Europe and Asia. Most of our concentrates are shipped to China but we also have customers in a number of other places including India, Bulgaria, Belgium, Finland and Sweden.

CBI is operating in one of the most beautiful region of Turkey, maybe the world. It is all green there. And somebody passing by the mine site wouldn’t recognize that there would be a mine operating there, unless he sees the CBI signboard. How do you apply such environmental friendly policies?

Exploation drive circa. 1985

(IA:) The beauties and culture of this region rival anything else I have

September 2013

21

seen that the world has to offer and I encourage others to come see it for themselves. Our advantage over other mines is that we have a small surface footprint and with some creativity and a few dollars spent on reducing our visual impact it is relatively easy to keep our site clean, green and blend in with the local environment.

Can you tell us about the challenges and advantages of operating while you are so close to the nature?

(IA:) The people living in this region are environmentally aware. Rather than being a challenge I think this is an advantage for Çayeli Bakır. The majority of our employees are also from the local region and want to protect this environment for future generations so implementing any improved environmental policy or practice is readily adopted by our employees. Çayeli Bakır is located next to a river in an area of heavy rainfall. We must maintain our vigilance at all times that any spill on the site can end up in the local river system. We don’t use particularly toxic chemicals so I wouldn’t say the risks posed by our Operation to the environment and community are high. However we must manage the perception that we are in a heavy industry and therefore discharging harmful chemicals into our environment. For this reason every employee and contractor is educated in a practice we call ‘Zero Discharge’ to prevent

First cut on the underground gallery circa. 1992

even the smallest spill from reaching the river system.

You are the first company in Turkey to receive the award “In Recognition of Your Achievement of Level AAA Ranking in Aboriginal and Community Outreach” from Mining Association of Canada (MAC). Can you explain what this award mean?

(IA:) Çayeli Bakır also received and award from MAC for Crisis Management and we remain confident that we will receive a AAA ranking in Safety the next time the assessments are made. While it is nice for the Company and it’s employees to receive recognition from our peers my main priority is to use these standards to

Underground Miner Hasan Karslıoğlu

22

September 2013

drive continuous improvement and our performance. Receiving these awards is motivational for myself and the whole Çayeli Bakır team and this helps us to improve what we are doing.

You are also operating very close to the community. Some mining companies are facing big problems with the local community. What is the situation for CBI? (IA:) Like other mining companies we

have our challenges when it comes to engaging the local community. In general we treat people how we would like to be treated ourselves and this seems to help overcome any initial misunderstandings. Today, one of our strengths as a Company is that we recognise there will be differences of opinion from time to time but we continue to listen and where possible we will modify our operating practices.

One of the things we can never seem to get correct is local employment.

Each time we recruit to fill a vacancy everyone seems to have an opinion on who and why the person they know should be selected over others. We currently have a program underway to make our recruitment practices more transparent and to educate the community on how our processes will be applied. Another area of concern was noise coming from the operation particularly in the evening so we launched a noise abatement program and shifted some of our operations to the day time. We educated our employees how certain noises could be prevented and

designed a noise containment structures. The containment structure built for our contractors’ exploration drill rig which works out in the field occasionally close to our community’s homes was definitely a challenge. I don’t recall seeing any similar structures in use on drill rigs anywhere else.

Did CBI experience any change in its corporate values after its acquisition by First Quantum?

(IA:) Most of the changes as a result of the acquisition were at the corporate office in Toronto and our Marketing Office. Çayeli Bakır is essentially unchanged as a result of this transaction.

First Quantum also has a commitment to Corporate Responsibility and there is good alignment between the First Quantum programs and what we were previously using. We are currently updating our programs to incorporate some of the First Quantum terminology; I doubt this will result in a significant change to what we have been previously doing.

that every accident is preventable and we can one day achieve our motivational goal of ‘Zero Harm’. To achieve accident rates as low as Çayeli Bakır takes time, energy and resources but above all it takes commitment, discipline and leadership.

At Çayeli Bakır safety isn’t an ‘add on’ it is totally integrated into everything we do. Amongst our 500 employees we don’t just have 1 or 2 safety experts I like to think we have in excess of 500 safety experts. Of course we have a rather complex safety management system to manage safety but we do try to simplify the essential elements so every employee can understand what part they must play in creating a safe working environment. For example at Çayeli Bakır every employee has the right and obligation to stop a production process or refuse to do work if they believe it cannot be safely performed, we call this the ‘Obligation to Refuse Hazardous Works’. We also have other simple tools for our employees to use and manage our highest safety risks on the site.

It is a well-known fact that CBI is one of the safest operations around the world. How do you achieve this?

CBI has left 30 years behind.

Can you give us information about the life of mine?

(IA:) At Çayeli Bakır it is a core belief

supply will be depleted sometime in

(IA:) Based on current reserves ore

2019. Exploration efforts to find additional reserves continue and if metal prices increase there may be some opportunity to extend the Life of Mine further. Should we be unable to extend to Life of Mine I am certain that many of our skilled and talented employees will be absorbed by other companies into the industry.

What are your plans for the mine closure?

(IA:) The technical aspects of mine clo-

sure have been addressed in our Mine Closure Plan which has been prepared in consultation with our consultants SRK, funding for this plan is allocated.

Later this year we will commence a study to understand and address the social aspects of mine closure.

CONTACTS Çayeli Bakır İşletmeleri AŞ Address : Pk. 42 - 53200 Madenli Beldesi Çayeli - RİZE Phone : +90 (464) 544 1 544 Email : info@cayelibakir.com Website : www.first-quantum.com

Shaft Operator Fevzi Bilgili

September 2013

23

Profile www.miningturkeymag.com

Barkom Group Drilling Rig & Equipment Co. Ltd. BARKOM GROUP was established in 1987 in Ankara, Turkey. The company vision is “To manufacture and serve high quality drilling equipment to our clients as fast as possible, no matter where they drill”. To achieve this goal BARKOM GROUP uses the best possible raw material and its quality management system has been assessed and registered as complying with the ISO 9001:2008 requirements, proving the standardization and quality of its products. The company also complies with ISO 14001:2004 and OHSAS 18001:2007 standards. BARKOM GROUP has the largest product range about diamond core drilling in Turkey.

Having grown steadily since its foundation, the company has relocated to its new factory that has more than 5,000 m² production, storage and office area in 2012. The company has increased the capacity of manufacturing line to 10 CNC, 5 lathe, 2 milling, 1 upsetting and 1 induction hardening machines to supply its products within the shortest time. Having an innovative nature, Barkom made a large investment about induction hardening and after months of research for perfecting the hardening parameters, BARKOM GROUP now proudly presents the first Induction Hardened/Heat Treated drill rods made in Turkey.

A specific branch of Induction Hardening (Case Hardening) is utilized for pin threads. This process effects only a limited depth from the surface and while increasing wear resistance it also preserves toughness of the core, which is crucial to prevent cracking failures in harsh drilling environment. Through hardening and tempering box threads not only increase strength and wear resistance but also prevents transfer of wear material which is a common problem that occurs between surfaces of equal hardness.

Besides its own products, BARKOM GROUP is also the authorized distributor of Fordia (Diamond Tools), Reflex (Borehole Surveying Instruments), Hanjin D&B (Diamond Core Drill Rigs & Mud Pumps), AMC (Drilling Fluid Additives), Jet-Lube (Thread Compounds) & Gonar Drill Co. Ltd. (DTH & Rock Drilling Tools).

Improving its product range with these companies, BARKOM GROUP has become a fully-fledged supplier in Turkey and has directly exported its products to more than 40 countries in 4 continents.

BARKOM GROUP invites you to enjoy the privileges of being one of its customers.

CONTACTS Barkom Grup Sondaj Makina ve Ekipmanlari Ltd. Şti Address : Anadolu Bulvarı No: 204 Yenimahalle 06210 Ankara - Turkey Phone : +90 (312) 385 60 50 Fax : +90 (312) 385 35 75 Email : info@barkomltd.com Website : www.barkomltd.com

24

September 2013

Article www.miningturkeymag.com

Latest Picture of Turkish Mining by the Leaders of the Sector The world is going through constant change. About every decade, business contracts and alliances between countries, internal dynamics and objectives of countries change. Turkey has also experienced major changes throughout the last decade. Foreign-invested companies and private enterprises have been highly promoted world-renowned projects have been undertaken in the fields of urban transformation and transportation, despite the growth in domestic and foreign debt, stabilization in economy has been ensured. The country, in contradiction to the some EU countries and neighbors, has escaped the worst of the global financial crisis, although gross domestic product (GDP) fell sharply last year to 2.2%. But the country has been through a period of rapid economic expansion with rising demand and urbanization.

The Minister of Energy and Natural Resources Taner Yıldız estimates that the sector which makes a contribution in the amount of 1.5% of the country’s GDP, needs an additional investment of 4.5 billion dollar to achieve the planned growth in the sector. Furthermore, the mining sector has also received an unprecedented support.

In his speech at the 4th International İstanbul Gold Summit, Deputy Prime Minister in Charge of Economy Ali Babacan suggested that the state’s foreign deficit could be settled via gold mining and noted that they have been reflecting on this idea. General Directorate of Mining Affairs General Manager Mehmet Hamdi Yıldırım commented on the subject at the Innovations and Practices of Mining, Environment, Forest and Incentive Legislations Seminar, in May 2013.

Yıldırım said the mining sector with its substantial role in the country’s economy, has been displaying a constant advancement, they - as the ministry - have been pursuing certain basic policies as part of this advancement and improvements have been main-

26

tained in this framework, by making an overall emphasis on these policies throughout his speech. The Minister suggested that, within the scope of their policies, they attach the due importance to the local mining companies, and aim to make sure that local companies carry out their activities upon adopting the culture and mindset of mining and become competitive within the sector. He underscored, however, such an approach would not aspire to rule out foreign capital by any means and remarked that foreign capital is fundamental to our country and foreign companies are welcome to maintain their mining activities.

Pointing out the recent rise of domestic and domestic / foreign partnership companies that carry out from-scratch explorations, Yıldırım noted “This is something positive for the sector. If the country’s economy prospers in the coming years and the problems in the sector are eliminated, a breakthrough in the field of mining would be likely within 3 - 5 years.” The Minister said they have been observing a policy to ensure a mining system where mining activities are carried out in line with the international standards, technology is employed to the fullest extent, R&D activities are maintained, environmental awareness prevails and ultimate labor and employee safety is provided.

According to Managing Director of Ariana Resources Kerim Şener’s article named “Turkey: Seeking traction” in Mining Journal’s 10 May 2013 report, mining sector and foreign direct investment (FDI) plays a significant role for the Turkish economy: “Considering that just over a decade ago the Turkish mining sector had very little foreign direct investment (FDI), recent growth has been nothing less than meteoric. Expansion stems predominantly from structural reforms that were brought into effect from 2004 onwards. Turkey’s desire to join the European Union (EU) helped force changes in all sectors. However, for the mining industry, it was the boost to

September 2013

the private sector that has had the most profound impact. In 2002, 85% of the mining industry was owned by the state, but by 2012 the same percentage had been transferred to private ownership - a remarkable turnaround in 10 years.

By simplifying or modifying operating procedures, as well as amending mining laws and taxation, the Turkish government was able to create a highly attractive environment for foreign investment.

With the foundations laid, it was down to private enterprise to create and drive future growth.

Turkey is determined to bolster its economy, and the mining sector is set to play an increasingly significant role. In order to achieve this, foreign investment is essential. The ministry of energy and natural resources recognizes that in order to achieve long-term sustainable development in the sector, it must move with the times. A process of restructuring and reevaluation will enable Turkey to develop a globally influential and industrially integrated sector.”

The Minister of Energy and Natural Resources Taner Yıldız

Today, Turkish government maintains all of the boron production - all boron reserves are under the possession of Turkish Government - and an important part of the coal production. Since 2003, privatization in the country energized generally all kinds of production including mining. New local players entered mining sector after the success of foreign investors like Newmont, in Ovacık Gold Mine and Inmet Mining (recently acquired by First Quantum Minerals), at Çayeli Copper Mine. Turkish printhouse owner Koza Group acquired Ovacık Gold Mine from Newmont back in 2005 and acquired Newmont’s subsidiary in Turkey, Newmont Altın Madencilik Ltd in 2008. At the present time Koza Gold is the only 100% Turkish gold producer and owns 4 gold mines with world class facilities and health & safety procedures.

First Quantum acquired Inmet Mining in March this year, which owned 100% of Çayeli Copper Mine in 2004 after the privatization of the shares of Turkish Government (45% of total shares). Iain Anderson, Managing Director of Çayeli Bakır İşletmeleri AŞ, underlines First Quantum’s intentions about mining and exploration in Turkey: “Prior to the acquisition First Quantum had an active interest in Turkey. First Quantum is funding 8.5 million dollar in exploration spending at Columbus Copper’s Karapınar copperporphyry and Demirtepe high-grade copper-gold-silver-molybdenum skarn projects. First Quantum is also supporting our own exploration efforts at Çayeli Bakır; it is unlikely that such investments would occur if the corporation did not hold Turkey in high regard.” This year, it is Çayeli Bakır’s 30th year anniversary.

Iain Anderson compares this period, especially last decade: “I credit the government for reforms it has made to the mining law and improving the incentive regime for investors. Today there is more interest in the sector from both domestic and foreign investors than there was 10 years ago and this is reflected in the

amount of exploration drilling that is occurring. As a result our sector is poised to make an important contribution to the government’s ambitious growth goals by 2023. In addition to the government creating the right investment environment there have been a number of technical advancements in the industry in the past 10 years which have led to an increased use of computers and automation in our business. Mining has become a much more complex and sophisticated business where we don’t just deal with technical problems now we also have to consider the social impact of our work and many companies now invest heavily into their Corporate Responsibility programs and the development of their employees.”

WHAT CHANGED AFTER 2003 AND PRIVATIZATIONS?

As Iain Anderson pointed out, as from 2003 onwards, Turkey has experienced major changes in the field of mining.

Subsequent to privatizations, not only the higher interest by domestic investors in mining but also initiation of exploration activities by foreign mining firms as sequel to world’s leading mining companies such as Teck, Newmont and Rio Tinto have catered for developments in legal, administrative and technical fields. In particular, upon the amendment of the Mining Law in 2010 and its regulations, awarding of licenses have been re-arranged and it has been ensured that licenses are awarded to real investors and furthermore the period for explorations has been extended to 7 years . The domestic firms that entered the mining sector followed the steps by foreign mining companies and ergo mining activities in Turkey has managed to achieve global standards. Local firms endeavor to find foreign investors upon conducting resource estimations based on standards such as JORC and NI43-101. Capital accumulation in the country has been ensured and domestic investors have also got the funds to make investments abroad. The number of firms undertaking investments

General Directorate of Mining Affairs General Manager Mehmet Hamdi Yıldırım

in Africa, Asia and Europe has been ascending day by day. It is safe to say that by virtue of its large young population and the advancement of logistic facilities upon investments, Turkey has become an attractive country in the eyes of foreign investors.

The local machinery manufacturers and construction firms that establish facilities have also had their shares from such advancement. Particularly thanks to the dynamism in the field of exploration, manufacturers and contractors of drilling equipment have made significant strides as in the case of facility constructors and manufacturers which provide equipment for the facilities established as their number grow. In his remarks about the Turkish market, Murat As, the Director of IDC, one of Turkey’s leading drilling contractors, put forward some suggestions for the progression of the sector: “Since after 2006 there is a considerable expansion which gives additional opportunities to everybody in our market but this expansion can also be questioned whether it is a definite growth on all aspects or not. Similar to that permanency and continuance should be the main factors of quality for each establishment.” He also pointed out the regression in exploration activities

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in the past year due to the problems experienced in the permit procedures subsequent to the Circular by the Prime Ministry, the downfall in the metal prices and global economic crisis indicators: “Obviously we had some changes due to negative market conditions for past one year and drastically in the past 6 months period. These negative market conditions can mainly be summarized under mining permits and metal prizes.

We were meeting with negative results of mining permits also last year these days but we were protecting our positive mood, later on the effects of mining permits combined with the global decrement on ore prizes. For 2013 we had chance to proceed in the way we almost foreseen other than innovative improvements and investments and each day elapsed reminded us the mining days in 1995 - 2000 and 2009.”

Although mining sector has experienced a substantial breakthrough over the past decade, particularly in the last year, decisions were taken which would slow down this significant advancement. In accordance with the Prime Ministry’s Circular dated 16 June 2012, all necessary permits, including mining activities, must be submitted to the Prima Ministry for approval, where the permit relates to government-owned lands. The impact was immediate to the companies operating in Turkey. In particular, the lack of transparency and unnecessary bureaucracy appeared after years of positive reforms. Due to this uncertain atmosphere, companies are being forced to suspend or postpone drilling programs and this will concern the foreign investors.

Many of these organizations are cashrich construction or holding companies.

However, many have demonstrated an inability to evaluate properly the properties for which they bid. Such companies are often unaware of the risks, the funding requirements and the long timescales required to advance a project from exploration to mining.

A number do not understand the fundamental nature of geological risk and maintain the erroneous belief that many license areas should contain future gold mines. The net effect of this has been an artificial uplift in asset values far beyond reasonable levels, which is pricing out of the market many junior explorers and developers with the requisite skills and understanding of risk.

The Turkish government, for its part, must not give into the temptation of constantly tinkering with laws and regulations governing the sector, as this serves only to increase uncertainty and reduce investment appetite. A partlyflawed, but workable system is far better than a situation in which no one knows quite where they stand.” Ümit Akdur, the President of Gold Miner’s Association which serves for the purpose of raising the problems of gold mining and advancement of gold mining firms also made statements on the subject: “Drops in gold prices, the 45% fall in the funds which provide the risk capital for mining explorations and the increase in the investment and production costs are top items on the gold mining agenda.

Kerim Şener, the Managing Director of Ariana Resources which will soon become one of the gold producing firms upon their Red Rabbit project, outlined the other problems in Turkey as: “For the most part, changes to exploration license acquisition have been largely positive. The desire to build an extensive pipeline of exploration properties through increased turnover in exploration tenements has impacted existing exploration and development companies.

The drops in the prices have caused the cut off grade to climb one more. That is why the resources which could be run economically a couple of years ago are impossible to run based on today’s prices. Since the year 2004, serious downfalls have been experienced in the new gold reserve discoveries across the globe.

Each year, the world-wide number of newly discovered gold reserves that could be economically run is around 1.

For the discovery of new reserves, the periods of exploration are on the increase (15 to 20 years).

The auction process in 2012 encouraged a large influx of companies that are keen to invest in the lucrative gold industry.

In the past 21 years, a total of 2.5 billion dollar have been spent in the Turkish gold mining sector: 700 million dollar of

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this amount have been spent for exploration activities and 1.8 billion dollar for facility investments. Gold production, which was zero in 2000, reached 29.5 tonnes in 2012. According to our estimations, the gold production in 2013 will be around 33 tonnes.

Over the last decade, Turkish gold mining sector has experienced major developments. In the field of mining, trust and sustainability are prerequisites for long-term exploration projects. Projects carried out by our members in line with international standards are highly appreciated by both domestic and foreign authorities.“ As Akdur pointed out, the sustainability within the sector is vested in the sustainability in the laws, regulations and practices. As we indicated in the articles published in our previous editions, it would be more favorable for Turkey, as it goes through such a Mining Boom, to create a long-term and reassuring environment rather than short-term projections upon this spirit, taking particular account of the current low course of metal prices compared to lower cutoff grade.

WHAT SHOULD INVESTORS EXPECT FROM TURKEY?

The external factors casting an effect on Turkey recently can be listed as the escalation in the US Dollar during this complicated period for the Middle East, high-trending gold prices and the ongoing economic fluctuation that started in Europe. The items on the agenda of Turkey’s internal factors, on the other hand, are the removal of mining activities from within the scope of the Circular by the Prime Ministry and amendment of the present laws and regulations, up until the general elections of 2015. Keeping in

President of Gold Miner’s Association Ümit Akdur

mind that these changes have been communicated to the relevant units by all associations and foundations and positive responses have been received from the top authorities, it would only be realistic to foresees that Turkey as one of the four countries (TIMP - Turkey, Indonesia, Mexico, Philippines) to have stood out by virtue of its urbanization studies, will become one of the most attractive destinations in the field of mining, during the next decade.

The remarks by Hamdi Yıldırım, the General Director of Mining Affairs (MIGEM) in this regard, indicate that the government seeks to eliminate the shortcomings as soon as possible, and ensure a better operation in the mining sector: “We will not award licenses for the areas that are not cut out for mining. In addition, license awarding process for the areas suitable for mining will become more difficult compared to the one currently in practice. We will provide license guarantee for the investors who receive their licenses upon fulfilling

the due conditions. All permits necessary for production will be granted in the simplest manner. This is how the system we adopt will operate. I hope we will put this into practice subsequent to the first legal amendment ahead. Anyone who produces by-products or end-products in any mine is considered privileged in our eyes. We want to lift one-by-one all the barriers before an operating/producing company. The operating licenses of those who keep it without carrying out any production will be cancelled. As a matter of fact, we will strike a balance.

There will also be companies which produce and hold operating licenses to ensure the continuity of their production.

We acknowledge, in such cases, that a reasonable number of licenses can be held by the manufacturing company, as the future of production must be guaranteed. However, nobody shall be entitled to hold licenses outside the acceptable limits.”

In addition to all, such significant developments as the establishment of Turkey’s first metal nickel production

facility by Meta Nikel Kobalt Co., introduction by İlbak Holding of the largest copper reserve to be ever discovered by the Turkish private sector (24.5 million tonnes proved, 12 million tonnes probable copper), initiation of operation by Soma Holding of their new coal site reaching an annual production of 9 million tonnes and achievement of 8.5 million tonnes in the resources of Çöpler Gold Mine run by Anagold Mining which is a subsidiary of Alacer Gold, which are also referred to in the Turkish Mining Sector News section, support the idea that serious breakthroughs are underway in the Turkish mining sector.

CONTACTS O. Çağım Tuğ Mining Turkey Magazine Head Office : A. Öveçler Mah. 1042 Cd. (Eski 4. Cd.) 1335. Sk. Vadi Köşk Apt. 6/8 Ankara Turkey Phone : +90 (312) 482 18 60 Fax : +90 (312) 482 18 61 Email : info@miningturkeymag.com

Profile www.miningturkeymag.com

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The market share of the solutions of Netcad technologies provided for public authorities, municipalities and private sector throughout Turkey has reached 85%. In addition, Netcad products are being used as subject matter of courses in 462 departments in 82 universities. The number of people participating in Netcad Campus training programs is 5,500 per year.

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Netpro/Mine provides managing the drill-hole data in a database structure with the Geographical Information System basis. Using Netpro/Mine’s advanced data management techniques, any query operation on drill-hole data can be performed easily. Netpro/Mine includes user customizable libraries for Symbols, Lithology and Hatches.

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Metallogeny of Turkey

A Diverse Collisional and Post-Collisional Environment for Mineral Deposits SUMMARY

Turkish Tethyan collage is fragmented suite of microcontinents resulted from subsequent events in response to collision between Eurasian and AfroArabian plates during Late Cretaceous to Late Miocene time period; and closure of the NeoTethys ocean and a marginal oceanic basin, the İzmir Ankara - Erzincan (northerly ocean).

The collision has taken place along the Pontides, Bitlis - Zagros suture, and active Aegean subductions.

Turkish Tethyan collage is a highly fertile metallogenic environment with abundant volcanogenic massive sulfide, skarn, porphyry Cu and epithermal Au-Ag deposits in the entire TEMB and Turkey, clustering in narrow arc segments, and post to late orogenic extensional settings. The available data shows that these deposits are associated both with Late Cretaceous magmaticarc (Pontides and Bitlis - Zagros subductions), Late Paleocene - Early Eocene extension-driven post-collisional settings (Pontides, Tavsanli zone, central Anatolian Crystalline Complex and southeastern Anatolian Orogenic belt) after continental collision, and Middle to Late Eocene - Early Oligocene to Late Miocene extensional settings within overriding plate in a Aegean subduction zone (Biga peninsula, Western Anatolian Extensional province).

The gold deposits vary from gold-only subtype to by-product gold types.

These include porphyry Au deposits (e.g. Kışladağ - Uşak) and epithermal Au-Ag and base metal deposits (e.g.

Ovacık - İzmir, Mastra - Gümüşhane, Ağıdağı - Çanakale, Efemçukuru - İzmir, Küçükdere - Balıkesir, Öksüt - Kayseri) and Cu-Au deposits such as porphyry Cu-Au (e.g., Çöpler - Erzincan, Halilağa Çanakale, AS - Afyon), proximal coppergold skarn (e.g. Ayazmant - Çanakale, Evciler - Çanakale) and distal silver-base metal (e.g., Koru - Çanakale, Balya Balıkesir, Çataltepe - Çanakkale) depos-

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its. The lead-zinc deposits are mainly VMS-type (mainly Kuroko-type) in the Pontides; distal to manto-type mesothermal veins in the western Anatolian extensional province (WAEP), skarn type in central Anatolian crystalline complex (CACC), and carbonate-hosted or Mississipi Valley type (MVT) in the central to eastern Taurides. The copper deposits are mainly of porphyry type in Pontides with close association with molybdenum; Cyprus to Beshi-type in the southeastern Anatolia; skarn type in the WAEP. Apart from gold, copper, lead and zinc deposits, Turkey is also host to podiform chromite deposits which are widely associated with supra-subduction zone ophiolites derived from the southerly and northerly NeoTethys oceans or marginal oceanic basins (Vardar, or İzmir - Ankara - Erzincan Ocean) formed during the closure of NeoTethys. Although whole rock and mineral ages scatter 112 and 9 Ma, some deposits in this belt formed during short-lived magmatic events related to tectonic processes such as subduction, rollback / hinge retreat, continental collision, lithosphere delamination or tears in the subducting slab as the Arabian and African plates began to collide with the Eurasian plate during the opening, final closure and terminal suturing of the NeoTethys Ocean between Late Cretaceous to Quaternary period. There are also some known deposits that are potentially of Carlin-type, detachment fault-related gold-type, and gold in carbonate replacement and Mn-deposits, which are being exploration targets.

The above mentioned deposits are the direct consequences of three subductions and resultant collisional post collisional events that took place at Pontides between 112 - 75 Ma, 52 39 Ma; at CACC between 79 - 73 Ma and 11 - 9 Ma; at SEAOB between 83 - 79 Ma to 54 - 44 Ma, and at WAEP between 39 - 11 Ma. This review permits the construction of the temporal and

September 2013

spatial framework of magmatism and associated mineralization in the evolving NeoTethyan orogen, and shed light into major episode(s) and tectonic setting(s) of productive (fertile) magmatism in a transition from subduction related to post-collisional, and to late-orogenic events in Turkey.

INTRODUCTION

Turkey is one of the few countries that possess poly-metallic resource base, lying at the junction of the African, Eurasian and Arabian plates that resulted in repeated episodes of orogeny, magmatism and arc formation (Fig.1). This has resulted in a geologically active environment, making it possible for magma and hot fluids to well up from the mantle that have created innumerable mineral deposits. The Mesozoic to Cenozoic Alpine - Himalayan orogenic belt (Tethyan collage) stretching from Spain, to the east across Europe into Turkey, Iran, and southeast Afghanistan, Pakistan and the Himalayas, is an extremely complex geologic terrane caught between colliding continents (Perello et al., 2008). This belt is also known as the Tethyan - Eurasian metallogenic belt (TEMB; Jankovic and Petrascheck 1987). Turkey, as a part of this belt was formed since the Carboniferous, as the Arabian and African plates began to collide with the Eurasian plate during the opening, final closure and terminal suturing of the Tethys Ocean between Late Cretaceous to Quaternary period. In the Turkish part of TEMB, these complex environments are host to a wide spectrum of ore deposits including volcanogenic massive sulfide, skarn, porphyry, epithermal and IOCG. These deposits form several belts that stretch across Balkans to Turkey and continue into Georgia, Armenia to the north and Iran to the southeast (Figure 1); principally in the Pontides, centraleastern to southeastern Anatolia, and western Anatolia.

The geodynamic setting of the Tethyan

Figure 1. (a) Digital elevation map (DEM) of western Tethys illustrating the present configuration of major plates in Turkey, (b) Tectonic map of western Tethys showing main tectonic units, mineral deposits (From Kuşcu et al. 2013b)

collage in Turkey is reasonably well known. A similar understanding of the metallogenic evolution, is also well constrained (Kuşcu et al., 2013a; 2013b; Boztuğ et al. 2003; Yiğit, 2005; 2009; Kaymakcı and Kuşcu 2007). Besides, the spatial and some geological characteristics features of Late Cretaceous and Tertiary ore deposits of the Turkish Tethyan collage are also well documented (Yiğit, 2009), as is the relationships between regional tectonics, magmatism and ore formation (Kuşcu et al., 2010; 2013a; 2013b; Boztuğ et al. 2003; Yiğit, 2005; Kuşcu 2005). The common association of Cu-Au deposits worldwide with subduction-related calc-alkaline magmas in continental arcs are quite clear, and well documented;

Andes, North American Cordillera, Papua New Guinea, and China (e.g., Sillitoe 1972; Richards et al. 2001). Some deposits formed during extensional regimes whereas others occurred towards the end of collisional events.

The recent works showed the existence of a suite of porphyry Cu deposits in collisional zones (Hou et al., 20011; Hou and Cook, 2009) and intracontinental settings. Turkey, as being the part of an orogeny at the expense of colliding Eurasian, Arabian and African plates, forms a belt where subduction-related and post-collision related mineral deposits are present. This review summarizes the main metallogenic points of Turkey in relation to Tethyan evolution, and benefited much from the

earlier compilations.

NEOTETHYAN GEOLOGIC EVOLUTION OF TURKEY

The geologic - geodynamic evolution of Turkey is related to several subduction and collision events since the Precambrian, and is largely known as PaleoTethyan and NeoTethyan evolution. The works on the NeoTethyan evolution of Turkey enabled the recognition of three subductional - collisional events (Okay and Tüysüz, 1999; Göncüoğlu et al., 2000; Stampfli and Borel, 2002; Bozkurt and Mittwede, 2001). These events are due to; (1) closure of the northerly ocean, IAE ocean (collision between TAB and SM (Eurasian plate, sensu lato) in the north between ca. 110 - 39 Ma (2) closure

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of the southerly ocean, NeoTethys (collision between Arabian plate and TAB) to the south between 83 - 44 Ma (Kuşcu et al., 2013a), and (3) closure of the Mediterranean Sea, the remaining NeoTethys ocean (collision between TAB and African plate) to the west between 28 Ma to recent. These events were resulted in accretion of continents, amalgamation of microcontinental fragments and ophiolitic thrust slices. The first one is related to northward subduction of IAE oceanic lithosphere beneath the Eurasian continental margin, which was later metamorphosed to form the metamorphic basement in the Pontides (Fig. 1b; Fig. 2), and formed a magmatic arc in the Pontides. The second one is related to northward subduction of the Neotethys beneath TAB, and formed Baskil - Zagros subduction in the SEAOB. The third one is related to northeastward subduction of the Ionian part of the Eastern Mediterranean Sea and formed Helenic - Aegean subduction in the western Anatolia.

During the first subduction event, most

of the oceanic lithosphere belonging to IAE ocean was consumed firstly by intra-oceanic subduction that formed intra-oceanic OIB-type seamounts with (supra-subduction zone ophiolites, SSZ) at ca. 117 Ma and active margin along the Pontide subduction (Kaymakci et al., 2009). The SSZ ophiolites, widely exposed along the IAESZ (Fig. 1b; Fig. 2), have a geochemical composition intermediate between MORB and arc series, and were emplaced in deep marine slow-spreading basins. The volcanogenic massive sulfide deposits consisting of variety of Pb-Zn-Cu ore bodies within dacitic - rhyodacitic series within the Pontide arc. Following the subduction, the Pontides collided with TAB, and ophiolites were obducted onto the TAB (Okay and Tüysüz, 1999; Göncüoğlu et al., 2000; Bozkurt and Mittwede, 2001; Stampfli and Borrel, 2002; Rolland et al., 2009; 2011; Kuşcu et al., 2011 and 2013a) into the metamorphic massifs and obducted ophiolites. This emplacement also

resulted in regional HP metamorphism of the metamorphic soles below ophiolites, and TAB. The Strandja Massif (Menderes Massif and Central Anatolian Crystalline Complex (Sengor et al. 1984; Göncüoğlu et al., 2000) are examples of such metamorphic massifs (Fig. 2) formed by the ophiolitic nappes in Turkey. Rolland et al. (2009) suggested that the continental collision between SM and TAB and southward emplacement of the ophiolites and OIB sequence onto the TAB took place at ca.

85 - 80 Ma. After the final suturing of the Pontides and TAB, the continental lithosphere was subducted underneath the Pontides. This was followed by subsequent post-collision related extensional tectonics. This gave rise to (1) bimodal, shallow-seated and extensional magmatic complexes emplaced into the metamorphic basements during ca. (57) 48 to 42 Ma (Arslan and Aslan, 2005; Boztuğ et al., 2007; Karslı et al., 2010; Eyuboğlu et

Figure 2. Simplified geological map of Turkey showing the maim magmatic rocks (from Kuşcu et al., 2013b)

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al., 2011). The available data is favor of a slab break-off or slab-roll back process in the generation of these magmatic rocks in Pontides (Genç and Yılmaz, 1997; Arslan and Aslan, 2006; Kaygusuz et al., 2011) However, according to some authors, the break-off or roll back process is unlikely, and these magmatic rocks were formed in a post-collisional environment due to delamination (Eyuboğlu et al., 2011) The second subduction initiates at the southern part of the TAB along Bitlis - Zagros subduction while northern margin docks into the Northern subduction zone. This temporal relationship is interpreted to be a subduction jump from the north to the south of the TAB at ca. 85 - 80 Ma (Rolland et al., 2011). To the south, the main events separating the TAB from the Arabian plate took place between ca. 83 - 79 Ma witnessed northward subduction of Neotethys (the second subduction event) below the TAB forming the Bitlis - Zagros active margin (e.g., Agard et al., 2005; Robertson et al., 2005; Rolland et al., 2011; Kuşcu et al., 2013a and references therein). During the second subduction event, most of

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the oceanic lithosphere belonging to southerly ocean, NeoTethys between Arabian plate and TAB was consumed firstly by intra-oceanic subduction that also resulted in supra-subduction zone (SSZ) ophiolites at c. 90 - 95.

These SSZ ophiolites were then emplaced over the southern margin of the TAB (Fig. 1b) forming the Malatya - Keban metamorphics (Robertson et al., 2005; Kuşcu et al.,2013a). This was followed by the closure of the NeoTethys oceanic basin that resulted in an active margin along the Bitlis - Zagros subduction between 83 - 79 Ma (Kuşcu et al., 2013a). The subduction resulted in voluminous calc-alkaline intrusive magmatism emplaced into Malatya - Keban and Bitlis - Pötürge metamorphics (Fig. 2). This short-lived subduction was terminated due to collision between Arabian plate and TAB, and is marked by the emplacement of the ophiolitic nappes over the Bitlis Pötürge metamorphic massifs within the SEAOB. The high temperature metamorphism of the Bitlis - Puturge dated as ca. 74 - 71 Ma (Göncüoglu and Turhan, 1984; Rolland et al., 2011).

This metamorphic age was interpreted as the timing of continental litho-

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spheric subduction (underthrusting) underneath TAB before the final suturing of Arabian and Eurasian plates (Rolland et al., 2011). Following the underthrusting of the metamorphics underneath TAB, the whole region experienced a post-collisional extension due to decrease in the convergence rate between Arabian and Eurasian plates (Savostin et al., 1986; Kuşcu et al., 2013a) and delamination or rollback of the subducted slab between ca. 77 to 54 Ma (Kuşcu et al., 2013a; Rolland et al., 2011) that exhumed the metamorphic basement, unroofed previously obducted ophiolites, and filled basins with Maastrichtian to Paleocene subaerial and submarine sedimentary rocks. Initial extension coincided with emplacement of calcalkaline to alkaline magmatism ranging from ca. 77 to 73 Ma in central and southeastern Anatolia (Kuşcu et al., 2011), then by alkaline magmatism peaking at 74 - 71 Ma (Kuşcu et al., 2013a) mostly at eastern and southeastern Anatolia. The subsequent magmatism took place in Pontides, Tavsanlı zone and SEAOB took place between early to Middle Eocene (~52 and 44 Ma, peaking at 48 Ma; Kuşcu et

al., 2013a). Several works that favored an arc origin for the Eocene magmatic rocks (Yiğitbaş and Yılmaz, 1996; Richards, 2003), and slab break-off origin (Onal et al.,2005), appears to be inconsistent with the available geologic evidence. However, the commonplace of Eocene igneous rocks (volcanic and volcaniclastic rocks) coexisting with or emplaced into fault-bounded sedimentary basins are favor of extensional events (Kuşcu et al., 2011; 2013a).

The final continental collision and suturing of Arabia with the ATB and metamorphosed counterparts of eastern Taurides in the middle Miocene was followed by a slab-steepening and break-off beneath the ATB (Sengor et al. 2003).

The Late Eocene - Oligocene compression is very widespread and extends from eastern Turkey to Aegean region and further west into Greece. This collision resulted in extrusion of TAB into Greece, and Helenic - Aegean subduction zone (third subduction event). The Aegean subduction peaking at about 42 - 26 Ma (Kuşcu, 2009; Kuşcu et al., 2013b) produced isolated continental arc magmatism mainly in the western, northwestern Turkey. The field observations supported by geochronologic and geochemical data (Kuşcu, 2009) on magmatic events suggested that that Aegean subduction is accompanied by a lithospheric extension, exhumation, core-complex development, subduction and extensionrelated magmatism and large-scale, probably gravitational gliding of the Lycian Nappes system approximately between 24 - 23 to Plio-Quaternary (Aldanmaz et al., 2000; Doglioni et al., 2002; Kuşcu, 2009; van Hinsbergen et al., 2010; Kuşcu et al., 2013b). The recent lines of evidence argue that there is no single mechanism and time period responsible for the extension in WAEP, instead roll-back, slab break-off and differential decoupling and internal deformation - disruption processes appear to worked together through time starting from Middle Eocene to Plio-Quaternary. The central and eastern Anatolia, however, experienced voluminous magmatism starting from Mid-Miocene to Quaternary that produced several phases of calc-alkaline and alkaline magmatism within previously metamorphosed sedimentary - volcanosedimentary sequences.

These are interpreted to be related to transtensional regime or slab break off event after the final suturing of Arabian plate and Anatolides.

METALLOGENY OF TURKEY

As a part of the TEMB, Turkey has many characteristics similar to surrounding countries and host many volcanogenic massive sulfide, porphyry-type, skarn and hydrothermal and magmatic deposits.

These deposits occur within regional belts that could be traced across the neighboring countries (The opening of NeoTethys and resultant passive margin evolution ocean caused subsidence of the continental margin, which created extensive platform shelf areas where carbonate-hosted lead/zinc/silver deposits such as those widely discovered in the central and eastern Taurides formed during the Lower - mid Cretaceous. Although the magmatic and metallogenic processes were dominant in the Jurassic - Miocene time interval, the principal mineralization types have been formed during different metallogenic epochs starting from Late Cretaceous to Late Mioc. Pliocene times. The earliest significant mineralization events of the Neotethys in Turkey occurred during late Jurassic to Early Cretaceous when an intra-oceanic subduction (supra subduction) formed due to initial closure of the northerly ocean (Vardar - İzmir - Ankara ocean), and an incipient roll-back. This event accompanied also by formation of the supra-subduction zone ophiolites, is the first metallogenic epoch (110 - 90 Ma) associated with magmatic segregation type podiform chromite deposits. The subduction in the pontides, then, has been achieved through in two successive stages; an early phase producing islandarc type volcanic - volcanoclastic sequences mainly during Late Jurassic to Early Cretaceous, and a later phase producing arc-type intrusive magmatism during Late Cretaceous. The early phase which could also be termed as the second metallogenic epoch was responsible for the formation of volcanogenic massive sulfide deposits in marine basins along with the Eastern Europe and Iran. These include major deposits such as Çayeli and Murgul in

the Eastern Pontides. The later phase, Late Cretaceous (~85 - 77.5 Ma, 2009) subduction events that created arc magmatism (diorite to granitic) and associated Cu-Mo porphyry mineralization at the NW, NE (Pontide subduction) and SE (Bitlis - Zagros subduction) in Turkey corresponds to the third metallogenic epoch, an epoch during which porphyry systems were predominant. The third metallogenic epoch at the expense of Pontide subduction produced porphyry style (Demirköy and Dereköy) and skarn (Armutveren and Şükrüpaşa) mineralization close to Bulgarian border at Kırklareli and Edirne, and some sub-economic CuMo porphyries like Balcılı, Börekli and Pohrenk, Ulutaş and Güzelyayla at the eastern Pontides. Apart from these, Late Cretaceous porphyry systems are scarce in the Pontides. The same time period during which southerly ocean was consumed along the Zagros Bitlis subduction, and associated with volcano-plutonic magmatism is more favorable in producing porphyry systems hosted by granodiorite to tonalite - dacitic rocks exposed as an arcuate belt from Kahramanmaraş, Bitlis, Elazığ and south of Tunceli.

The post-collisional extensional events after the main continental collision (collision of Eurasian plate with Anatolides at the north, Vardar - İzmir - Ankara - Erzincan suture; and collision of Arabian plate with Anatolides at the south, Bitlis Zagros suture) generated voluminous magmatism and associated mineralization as the fourth metallogenic epoch. This also corresponds to a Mesozoic - Tertiary boundary (Uppermost Cretaceous to LowerMid Paleocene during which a major crustal extension is predominant throughout Turkey. This epoch has no associated mineralization within the Pontides, but is extensive within the central Anatolia and SEAOB in the metamorphic terranes intruded by post-collisional (late orogenic) I- to H-type calc-alkaline granitoids and I-type alkaline volcano-plutonic associations, During this epoch, as an early phase (74 - 73 Ma) calc-alkaline magmatism (monzodiorite, granodiorite to Q-dioritic) was formed by a roll-back-driven mechanism or exhumation of metamorphics, and produced IOCG

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(Divriği), and Fe- and Pb-Zn skarns mainly at central (Kesikköprü, Çelebi, Akdağmadeni, Akçakışla, Keskin), and eastern Anatolia. This was followed by an alkaline magmatism (syenitic to trachytic) generated by a withinplate, late-orogenic extension that produced alkaline-hosted mineral deposits such as Cu-F-Mo porphyries (Keban, Yeşilyurt - Malatya), Fe- and Pb-Zn skarns (Durmuşlu, Keban) and IOCG deposits (Hasançelebi, Karakuz) as a late phase (74 - 69Ma, Kuşcu et al., 2011) at eastern Anatolia and northern parts of the SEAOB. The final suturing of the Afro-Arabian plates with the Eurasian plate, and continued N-S convergence caused either initial slab rupture and/or a STEP faulting at the overriding plate within the SEAOB (Kuşcu et al., 2010a), slab break-off within the Pontides, and western Anatolia. This was resulted in partial melting and shallow seated bimodal volcano-plutonic complexes with a striking adakite-like geochemical fingerprinting formed during Early - Middle Eocene (~57 - 39Ma, Kuşcu, 2009) at Pontides, SEAOB, CACC and western Anatolia. This is accepted as the fifth metallogenic epoch during which abundant economic porphyry Cu-Au, Au at SEAOB (Çöpler, Kabataş, İliç) and Mastra, Bahçecik, Bakırçay Berta and Konak at Pontides; Fe- , Fe-Cu skarns at SEAOB (Bizmişen, Çaltı, Pertek, Mamlis - Sin), CACC (Esendemirtepe, Horoz, Karamadazı) and western Anatolia (Kuşçayır, Kartaldağ, Domaniç - Muratdere) has been formed. Most of the occurrences/mineralization within western Anatolia lies mainly within the Biga (Çanakkale - Balıkesir) region where a continuous intrusive and extrusive magmatism from Eocene to Pliocene are recorded.

These are mostly skarn, porphyry to epithermal (to mesothermal?) systems with low sulfidation and high sulfidation characteristics. The skarns are limited and associated with post-collisional volcano-plutonic associations that spans from late Eocene to late Oligocene - Miocene.

The sixth metallogenic epoch in the metallogenic history of Turkey corresponds to Middle-Late Oligocene during which the convergence between African and Eurasian plates have been accommodated by Aegean subduction, that produced

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compression related, arc-type volcano-plutonic sequences mainly at Biga peninsula. This epoch has played an important role mainly on the generation of porphyry (Ağıdağ, Tepeoba), Fe-Cu skarns (Evciler, Bayramiç), HS epithermal systems (Pirentepe) with sporadic LS systems (Küçükdere), IOCG (Şamlı, Demirlitepe), Pb-Zn and Fe-skarns (Baklan, Ayazmant) and volcanichosted mesothermal Pb-Zn vein systems (Balya, Karaköy) within the western Anatolia. The seventh metallogenic epoch have spatial and temporal associations and with younger calc-alkaline to mildly alkaline extrusive and intrusive magmatic rocks from early to middle Miocene, and is related to the porphyry (Kışladağ), Fe-Cu skarns and LS epithermal (Doğancılar, Kepez) systems. The eighth metallogenic epoch have close relationships mainly with alkaline volcanic associations only formed during late Miocene. This epoch is related to only to porphyry (AS and Inlice) and telescoping epithermal systems. The available Ar-Ar geochronology (Kuşcu, 2009; Kuşcu et al., 2013a) have shown that the HS, porphyry and LS-type epithermal systems along with some Fe-Cu skarn and IOCG systems appear to be associated with a younger phase of magmatism due subduction and subsequent core-complex and/ or roll-back mechanism that took place between Late Oligocene Early Miocene and Middle Miocene, respectively. The operating major porphyries are associated mainly with extrusive alkaline magmatism at Middle - Late Miocene.

ACKNOWLEDGEMENTS

The work constitutes part of a collaborative research project generously sponsored by Barrick Gold Corp, Teck Cominco Ltd and Eldorado Gold - Tüprag Metal Mining Ltd İlkay Kuşcu expresses his sincere thanks to the sponsor companies for their financial and logistical support. Part of the work is also supported by TÜBİTAK (Grant YDABCAG-103Y098) to the author.

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156, p. 475 - 515. Önal, A., Boztuğ, D., Kürüm, S., Harlavan, Y., Arehart, G., and Arslan, M., 2005, K-Ar age determination, whole-rock and oxygen isotope geochemistry of the post-collisional Bizmişen and Çaltı plutons, SW Erzincan, eastern Central Anatolia, Turkey: Geological Journal, v. 40, p. 457 - 476.

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Sosson, M., Barrier, E., and Avagyan, A., 2011, Evidence for 80 - 75 Ma subduction jump during Anatolide - Tauride - Armenian block accretion and 48 Ma Arabia - Eurasia collision in Lesser Caucasus - East Anatolia: Journal of Geodynamics, doi:10.1016/j. jog.2011.08.006.

Savostin, L. A., Sibuet, J. C., Zonenshain, L. P., Le Pichon, X., and Rolet, J., 1986, Kinematic evolution of the Tethys belt, from the Atlantic to the Pamirs since the Triassic: Tectonophysics, v. 123, p.1 - 35. Şengör, A. M. C., and Yılmaz, Y., 1981.

Tethyan evolution of Turkey: a plate tectonic approach: Tectonophysics, v. 75, 181 - 241. Şengör, A.M.C., Satır, M. and Akkök, R., 1984, Timing of tectonic events in the Menderes massif, western Turkey: implications for tectonic evolution and evidence for Pan African basement in Turkey: Tectonics, v. 3, p. 693 - 707.

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CONTACTS İlkay Kuşcu (PhD. Prof.)

Address : Muğla Sıtkı Koçman University Department of Geological Engineering 48100 Muğla - Turkey Email: ikuscu@mu.edu.tr ikuscu@eos.ubc.ca

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Usage of Public Lands for Mining Activities Turkish mining legislation is, in general, investor-friendly. One of the significant features of this investor-friendly fabric is the usage of public land by license holders. Public land, as a generic term, refers not only to the land registered in the name of Treasury (Hazinenin özel mülkiyetindeki taşınmazlar)1, but also to the land under control and at disposal of State (Devletin hüküm ve tasarrufundaki yerler)2. Article 46 (para. 10) of Mining Law of 1985, as amended by Law No 5177 in 2004, stipulates that rent (kira), mesne profits (ecrimisil)3 cannot be required for mining activities conducted in the land registered in the name of Treasury or in the land under control and at disposal of State.

The reason provided by the government for this particular paragraph refers to royalty payments, which must, as per law, be paid up by miners, for the abolishment of rent and mesne profits.

It also clearly states that surface lease payments, such as rents and mesne profits, unnecessarily burden mining in the country. Concluding sentence is very blunt: “With this legal amendment, it is aimed that no fee is to be requested regarding such lands.”4 Article 122 of Implementing Regulation (Madencilik Faaliyetleri Uygulama Yönetmeliği), consisting of three paragraphs, is even more straightforward: “Mining activities in the land registered in the name of Treasury or in the land under control and at disposal of State 1) Rent or mesne profits cannot be required for mining activities conducted in the land registered in the name of Treasury or in the land under control and at disposal of State. These areas are regarded to have been earmarked for mining activities insofar as mining activities are conducted therein.

2) No permission is required in terms of land ownership in case the area, where mining activity is conducted, happens to be the land registered in the name of Treasury or in the land under control and at disposal of State.

3) In order for the land registered in the

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name of Treasury or for the land under control and at disposal of State to be let out or sold off for non-mining activities; opinion of city councils for Group I(a) license areas or of General Directorate (for Mining Affairs) for other group license areas is sought and obtained.”

Despite the steadfast language, the reality is somewhat different. The miners, who are to conduct mining activities in public land, do actually have to face a couple of legal hurdles that are reminiscent of, and almost identical to, rents or mesne profits.

Regarding forested areas, 1) forest land usage fee (orman arazi kullanım bedeli) (followed by security 2) maintenance fee for reforested areas (orman ağaçlandırma bakım bedeli) (coupled with reforestation fee)5.

If the mining area is a pasture (mera), grass fee (ot geliri) calculated on the basis of duration of usage needs to be paid in advance. Irrespective of the type of investment, the duration threshold is at least twenty years, and the investor asking for the grass field to be assigned to the investment project must pay at least twenty-year long grass fee in advance. This is also followed by security in cash. The calculation is carried out by a special committee set up in accordance with the Pasture Act (Law No. 4342) and Pasture Regulation in order to evaluate such request6.

The vagaries of the law have been exacerbated by the case law of the Court of Cassation (Yargıtay), which has read the same approach into its case law7.

The Court found in favor of the claimant, a public body, claiming that the land usage fee should be paid by the defendant due to the fact that the mining activities are conducted in a land that is under control and at disposal of State. The Court also opined that royalty payments do not count as land usage fee, therefore interchangeability argument is not allowed.

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The Court did come up with a very conservative approach by interpreting the terms “rent” and “mesne profits” in an overly restrictive way. Nonetheless, the Mining Law and its reasoning do not use restrictive language at all. Particularly in the reasoning, it is crystal clear that the law, no matter what it is called, aims to prohibit any sort of fees asked for the usage of public land. In other words, the language employed therein is indicative, almost leading to the usual legal qualifier of “including but not limited to” as opposed to “numerus clausus”8. In short, the Court has been blind not only to the letter of the law, but also to the official reasoning provided by the government and well-documented in the parliamentary minutes9.

To conclude, the license holders in Turkey, both exploration and operation, should not be forced to pay any fees relating to the usage of public land. It is imperative that the courts be unwavering in discouraging public bodies from resorting to such administrative deeds by challenging the legislative pieces that are both the very basis of such deeds and in evident conflict with the Mining Law. That all said, it is all the more important for the stakeholders to speak with one voice for issues that indiscriminately hurt the entire extractive industry, be it mines and quarries, small scale and large scale, open pit and underground.

They are all in this together, and the piecemeal approach does (and will) not benefit the medium and long-term objectives that both the government in office and the extractive industry have together set for themselves in the 10th development plan (2014-2018).10

REFERENCES 1- The entire stock of public land is maintained by the Ministry of Finance’s General Directorate of National Estate (Milli Emlak Genel Müdürlüğü).

2- Article 9 of the Implementing Regulation on the Law regarding Prevention of Unlawful Interference in the Possession of Immovable Property does specify a number of “things” as the immovable that are under control and at disposal of State save for the forests.

3- As a term derived from medieval times and largely used in common law countries, the phrase ‘mesne profits’ refers to the claim that a landlord is entitled to after a tenancy has been brought to an end but the tenant has failed to leave the land, altogether or in part. It underlines that the former tenant becomes occupier of the land. What is even more important from a legal perspective is that while the occupier is no longer a tenant, the landlord remains entitled to be compensated for the former tenant’s continued occupation of the land. Although being same legal concepts in essence, therefore serving almost the same purpose, ‘ecrimisil’, an Ottoman legal term regulated in Land Act of 1858 (Kanunname-i Arazi), is slightly different than mesne profits in that it refers to unlawful use of state property only (arazii miriye, or miri arazi). Since the Land Act of 1858 does not recognize bona fides holding of a private property, ecrimisil, in contrast to mesne profits, never becomes payable for unlawful use of private property, therefore is confined to (unlawful use of ) “public lands”.

4- www.tbmm.gov.tr/tutanaklar/TUTANAK/ TBMM/d22/c050/tbmm22050093ss0451. pdf Previous Mining Law of 1954 (Law No. 6309) was, albeit with different wording, in line with this legislative approach: “The land under control and at disposal of State, the

buildings belonging to State Article 133 - In the event that the land required for the operation of a mine is one that is under control and at disposal of State, it is to be assigned to that mining enterprise free of charge by the Council of Ministers upon reference by the Ministry of Economy and Commerce. The owner of mining enterprise might utilize the buildings already existing in the land and belonging to the State in exchange for a rent to be determined by the Ministry of Finance.” As seen, the rent is confined to the buildings.

5- For updated list of fees for 2013: web. ogm.gov.tr/birimler/merkez/izinirtifak/Sayfalar/IZ1_Talimatlar.aspx (in Turkish only).

6- If the pasture happens to be in the forest, the Ministry of Forest and Water (and its local offices) is the responsible body for the formalities. Otherwise, the Ministry of Food, Agriculture and Livestock is the ultimate body for pastures. There is a separate regulation issued by the Ministry of Food, Agriculture and Livestock for the collection of grass fees: Mera Kanunu’nun 30’uncu Maddesi Gereğince Yapılacak Tahsilatlar İle Ödenecek Huzur Haklarına İlişkin Yönetmelik (Official Gazette 28502, 19.12.2012).

7- Yargıtay, 4. Hukuk Dairesi, E. 2004/8387, K. 2005/3136, 28.03.2005 [quoted from Mustafa Topaloğlu, Maden Hukuku, Karahan Kitabevi, 2011, Istanbul, p. 104-105 (footnote 123)].

8- As a legal concept, numerus clausus actually belongs to the law of property, where it is believed that “transparency” prevails over everything else (paramount importance) (transparency consists of the principles of specifity and publicity). In legal (judicial) interpretation, it is most often borrowed by other areas of law to distinguish between grammatical (literal) interpretation and teleological interpretation. Sjef van Erp, Can European Property Law be Codified towards the Development of Property Notions?, in Lei Chen and C.H. (Remco) van Rhee (eds.), Towards a Chinese Civil Code: Comparative and Historical Perspectives, Leiden, Brill, November 2012, pp. 162-163.

9- This is what we call “legislating from the bench” brazenly ignoring travaux préparatoires of the legislator.

10- 10th Development Plan and its section on mining (in Turkish only) can be accessed at www.resmigazete.gov.tr/ eskiler/2013/07/20130706M1-1-1.doc.

CONTACTS Av. Cemâl Dursun Partner at Dursun Özfırat Attorneys at Law E-mail : cdursun@dursunozfirat.com

M a g a z i n e

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

Profile www.miningturkeymag.com

The Future Of Mining This Way!

For 150 years, the name Sandvik has been synonymous with designing and delivering products and services that create better operating environments for our customers.

Sandvik Mining combines resources and input from around the world to create technology that improves performance and adds value to our customersâ&#x20AC;&#x2122; operations.

From the first steel products to the vast assortment of materials, tools and equipment made around the world, Sandvik has consistently injected quality, excellence, and reliability into every aspect of finding the right solutions for our customers.

Our strength is in our customer relationships, before, during and after the sale. Although we have arguably the best R&D in the world, it is developed through constant customer feedback that defines how we make our equipment and tools suitable for the job.

Sandvik Mining follows this tradition.

Our constantly evolving product line for both surface and underground applications touches virtually every part of the mining process, including exploration, drilling, cutting, crushing, loading and hauling, and materials handling. No matter the terrain, material to be mined, ground hardness, or other conditions, Sandvik Mining focuses on ensuring that each of our customers is matched with the best products for the maximum in productivity, reliability and profitability.

With an active presence in over 150 countries, Sandvik Mining understands the global world of mining yet its local implications as well, and we take pride in being able to respond to a customersâ&#x20AC;&#x2122; needs quickly and effectively. Our proactive product support and customer servicing means you will always have well-qualified technicians and representatives helping maintain, service and upgrade your equipment, including genuine Sandvik parts, for optimum product life. In other words, we have programs that will keep your equipment running.

Innovation drives our product development. Advancing rapidly in areas such as automation, environmental impacts, and material processing.

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Training means learning to operate and service the equipment, with a particular emphasis on safety. There

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is no exception when it comes to helping ensure safety both in how our product is designed and functions, and how operators interact with it.

Understanding the machines leads to safer best practices and better productivity as well.

The Sandvik traditions of customer commitment, search for excellence and consistent delivery of products and expertise will continue to provide peace of mind, constantly re-assuring you that you will always have a partner that leads, supports and backs you up.

A team you can count on. No matter what.

CONTACTS Sandvik Mining Turkey Address : Ivedik OSB, ArÄą Sanayi Sitesi 1122 Cad. 1417 Sok. No: 60 Yenimahalle - Ankara Turkey Phone : +90 (0312) 551 49 00 Email : info.mining@sandvik.com Website : mining.sandvik.com

How can you increase botH safety and your production rate? tHis way!

If you are in the mining business, you know that an improved safety record means a lot to your employees and your entire company.

This safety mind-set is part of everything we do â&#x20AC;&#x201C; from research and product development to on-site service.

Join the movement towards The Future of Mining.

It´s This Way: sandvik.com/thisway

Article www.miningturkeymag.com

Turkish Progress and

Recent Trends in Chrome Beneficiation ABSTRACT

As the mineral processing design and technology improved, especially in recent years, Turkey advanced fast forward in chromite beneficiation. With the impressive advent of the commodity prices in this decade, both established and entrepreneurial companies, domestic and foreign, have flocked to Turkey and have followed the iterative approach to perfect the processing equipment locally manufactured, aided by the establishment of separate mineral processing departments at established Turkish universities. This will continue unabated because the ore grades are declining, cost-cutting is prime goal and the innovative smelting technologies can now handle fines. This paper presents in some detail this recent success story.

INTRODUCTION

Clearly one of the best inventions of mankind has been the ability to explore and identify the valuable minerals in the ground, dig them up, extract the valuable parts and get rid of the waste. Many of the enabling technologies, from producing pig iron in the blast furnace to copper floatation using surfactants, have been instrumental in shaping our modern lives. And this impact will continue unabated in light of the wild gyrations in commodity prices, based on a foundation of the economic fundamentals of supply and demand.

Within this context, mining and mineral processing constitute at an increasing rate the most important economic and industrial activities of our modern world.

This is to be expected as the human population increases and a massive urbanization takes hold, making demands for lithium extraction to be used in mobile phones, steel to be used for bridges and construction and chromium to be added to iron and nickel and to make stainless steel kitchenware to be used

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by the newly urbanized populace. There was a dire prediction back in the 1970’s, published by the Club of Rome in their influential report called “The Limits to Growth,” the recent trends and data indicate that there is plenty of mineral resources, albeit with lower grades, requiring and making ore beneficiation a critical element in the supply chain of metals and minerals. For example, for chromium, an essential element for the making of stainless steel and more or less the inspiration for this paper, only about one third of the total 4.72 billion tonnes of the world’s deposits can be classified as rich grade, which makes mineral processing imperative.

THE BENEFICIATION 1.1 WHAT IS IT FOR?

Chromite beneficiation aka processing is required to enrich low grade ores, which is not economical to be sold under the market conditions. Currently market accepts +30% grade of chromite ore but at a very low price (open to fluctuation at 100 - 120 $/t FOB). Hence the most rational method in the utilization of poorgrade chromite is to be able to provide sufficient grade of chromium in the feed material as well as providing it in suitable form for efficient production, such as in the DC arc furnaces, which are gaining ground vis-à-vis AC furnaces used in ferrochrome production. Therefore, within the supply chain of the mining industry, ore beneficiation or mineral enrichment becomes the essential link between the Earth’s resources in the ground and a sellable commodity which can be used directly by a customer.

1.2 WHY IS IT NEEDED?

This is basically relying on the most basic principle of mineral processing, which is not to transport the waste minerals. When the ore is mined out at a low grade, to be able to extract the valuable from the waste, it needs to be

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processed in a distance as short as possible so that it can have a market and/or further processing value.

Of course the conventional wisdom is that beneficiation is more needed as the ore grade tools, and a push coming from the mineral industry to live up to its commitment to sustainability principles, hence spending more time and money in the planning, research and development and in the design and construction of the beneficiation plant, are helping the growing demands of the market.

1.3 WHAT IS CHROMITE CONCENTRATE FOR?

In the steel industry, chromite ore is used for ferrochromium production, which is another input for stainless steel production. A steel alloy which has a minimum of 10.5% chromium by mass is defined as stainless (inox) steel. Therefore, the stainless property of a steel comes from the ferrochromium and so from chromite ore itself. Chrome concentrate, which is ground to usually -1 mm particles, cannot be used directly in AC ferrochromium production furnaces.

By the aid of new-tech DC furnaces, fine chromite can be consumed with no problem, as long as it is of high grade, at least 48%. Since concentrated chromite ore usually gives higher grade output on average grinding sizes, it makes this kind of process possible. This is not only the case for high carbon ferrochrome.

The need for a higher grade chromium concentrate is even more essential in the making of low carbon ferrochrome.

Also, although currently Turkey has enough reserves to be able to precede production with lumpy ores through AC furnaces, in the future, with the depleting lumps and lower grade, processed, i.e., enriched low grades will be the only resource for ferrochromium production.

CONCENTRATE MARKET

Concentrate demands in recent years increased, and so did the prices. Since China established more DC furnaces, their purchase of concentrate has risen up drastically. They learned how to ship their specs and gained benefit from the uptick in the concentrate market. As a result and simply, concentrate production has become so important.

One thing that PGM producers discovered was that the chromite in the tailings after the platinum is extracted could actually be sold as chromite ore.

These are UG2 Bushveld Complex ores where platinum could be found. Many South African companies did throw away their tailings although they contained already ground chromite which was ready for production. Once they discovered this case, they began extracting it. In fact, their chromite concentrate production costs were nearly zero to them. Only a few pumps and spirals were their capital and the overall operational costs. To be able to compete with “nearly free” UG2-sourced chromite ores, Turkey must improve

the local technology to lower the costs of per-unit chromite concentrate. Competing with other concentrate producers around the world, Turkish companies definitely do need something, which is government’s support or sponsorship. It is a fact that when government eases the companies’ burden, the sector thrives. India and Oman are good examples of such government sponsorship helping concentrate production companies.

with private investors and the government, is preparing Turkey to become a vibrant mining country. Apart from boron, chromite is Turkey’s largest metal product, followed by gold, bauxite and base metals. During the financial crisis in 2009, Turkey’s mining industry suffered a serious blow and then slowly recovered in 2010, continuing to 2011 with the global recovery and increased demand, primarily from China and the other growth markets.

CHROMITE MINING

CHROMITE PROCESSING

Although the country has some 70+ commodities being actively mined, Turkey still remains to be very much untapped and offers a large resource potential for an increasing number of global mining companies. The country’s mining industry in the past has lagged behind the manufacturing industry and contributed very little to the overall GDP. Since then, the Turkish government has recognized the importance of mining and has set a target to achieve some 5% of the GDP in 2023, the 100th anniversary of the Republic. Hence, the country, along

Of course there are several mineral processing techniques available to mining companies, like floatation, magnetic

Figure 1 - Price gap increasing between lumpy chromite ore and chromite concentrate

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separation, etc., but the one used the most-and some of old-timer miners swear by it, saying it is the best suited for Turkish chromium-type ores - is gravity concentration. It is probably 2,000 years old and is now undergoing a renaissance of sorts, with the mineral and mining industry focusing on mineral separation and beneficiation as the chrome ore grade decreases and the volumes to be treated increase exponentially.

Gravity processing utilizes the natural g-force applied on the valuable and waste mineral. Water is presented in order to hinder the movement of material across distances due to gravity.

In short, “chromite is separated from its waste according to their behavior inside water.”

Chromite processing requires suitable liberation size, defined by liberation tests applied to the ore. Several tests like optical counting, dense medium tests, etc., are available. When optimum size is determined, the feed material is crushed, ground to that size so that beneficiation can continue. Afterwards, jigs, dynawhirlpools, cones, spirals, shaking tables and centrifugal concentrators are used to recover chromite from the ground complex.

enrichment improves from top to bottom. In short, gravitational enrichment is cost-effective, uncomplicated, highly efficient and relatively easy to set up, hence the renaissance in gravity concentration plants due to all these reasons.

PROCESSING IN TURKEY

Turkey is a country where Alpine-type massive high grade chromite does exist.

But since the reserves are dwindling, it has become unavoidable to start processing low grade ores and utilizing systems consuming fines as an input. Although this is a scenario which will play out in full force more in the near future, it is essential to prepare for this eventuality now. Therefore, beneficiation of low grade ores and the science and the practice of mineral processing of chromite ore have become important in Turkey.

Earlier, not even 20% grades of chromite were worth processing, but now,

In gravity concentration, the efficiency of the process does not depend on the size of the particles as long as the mineral has been liberated from the rock. The other advantage of gravity concentration is that water is used as the medium, with no expensive reagents added. Setting up the concentration plant on a hillside provides the necessary acceleration force and the convenience of designing the concentration plant in 3, 4 or 5 levels as

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even 5% grade feed is considered rich enough to be processed. It is now possible to obtain 48% grade concentrate and 5% (today’s feed grade) tailings, with a 2.81:1 ratio (34.88% of feed as concentrate), from 20% grade feed. On the other hand, today’s 5% grade of feed would only give a concentrate with a ratio of 13.28:1 (7.53% of feed material), where the product is 48% and tailings are at 1.5%. Such a tailing grade like 1.5% is very hard to obtain under plant conditions and requires sophisticated instruments to constantly monitor and control the processing environment.

KEF: A ROLE MODEL

Early on, beneficiation of low grade ores was recognized, and one of the best examples of such a modern concentration plant was erected at Kef, Elazığ, with an 84 tph capacity. The factory was established in 1991, since the dry processing plant was not performing properly. The

Figure 2 - Annual concentrate production of ETİ KROM. Note the expected revisions projects completed at Kayseri and Iskenderun in 2014, and in 2015, Adana Project will be engaged to production

plant was entirely designed and set up by a Finnish company. Some Turkish staff was trained only for a few days in the parent company’s factory abroad, and then it switched on. A plethora of problems ensued during the commencement of the operations. It was just because plant operators simply didn’t know what to do, how to adapt the processing plant according to the fluctuations in the feed grades. During the sampling phase, the most important stage where everything actually begins to be able to set up the plant, the sample feed ore was washed, “polished” and sent to Finland in a manner of showing off that “Even Turkey’s low grade is not that low.” (Sampling must be properly done to be able to represent the whole mass of ores that will be processed.

There is no reason to clean up the sample before putting it into analysis. In fact, cleaning up the sample defies the purpose of sampling). When you check the project parameters, you can see that the average feed grade is expected around 32%, which means the plant cannot pro-

cess grades below 32% efficiently. Concentrate grade was targeted to 42%. Old plant tailings were around 20%. When the recovery was calculated, it was possible to see a value around 71%, which sounds good. But the truth of the matter was a different thing indeed. Average feed grades were not going above 25% and so the recovery plummeted down to 49% and even further.

One of the main problems of the plant was that it was modeled after the existing plants operated in the company’s country, designed according to the geography and topography of the native flat landscape. Inordinate amount of leveling was done to make the hilly landscape more flat instead of using the oldest force of separation referred to above, gravity. This resulted in using some 30 slurry pumps continuously circulating the pulp inside the plant instead of the 9 or 10 needed if the slope could have been used with natural flow. This resulted in an undue increase in operational costs.

After the privatization of ETİ KROM A.Ş., a transformational change took place, and not only in the day-to-day operations. The whole plant was re-plumbed, re-wired and adapted to the very specifics of the feed, the environment, and the available engineering know-how.

As a result, dramatic results were obtained and the improvements were noticeable. For example, even a minimum 11% feed grade could be fed to the plant and the recovery increased to 66%. Further improvements are constantly being made and the current project is focused on finer particles achieving a final recovery circa 75% and a grade around 48%, but still, market demand and constraints are important for production amounts.

KNOWLEDGE IN TURKEY

With the dramatic rise of commodity prices in the 2000’s, coupled with the more liberal attitude of the Turkish government in granting concession rights to the private sector, many domestic and foreign mining companies have shown a keen interest in exploring, mining and building beneficiation plants in Turkey. Not only has the expertise in mineral beneficiation improved, but so has the expertise of the equipment suppliers, automation engineers, process engineers, safety and environmental engineers.

There are two types of concentrate plants being built in Turkey, which are the slovenly ones and the ones with proper infrastructure. From small to large companies, more entrepreneurial fervor has caught fire and many miners and non-miners have now built their own concentration plants. Many of these plants are located in the

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well-known regions like Bursa - Orhaneli, Adana - Aladağ, Eskişehir - Kavak and Elazığ - Guleman. Turkish companies are now capable of designing and building their own processing plants with their own and/or contracted engineering teams. Even mineral processing engineering has become a sub-branch on its own and a few of the universities, amongst them İstanbul Technical University, Hacettepe and others, have founded separate departments with research cadres performing truly world-class research, serving many of the local mining companies. Many mineral processing engineers have entered into the mining engineering market, and they are capable of planning the whole plant, the beneficiation process flow, and any of them, including females, are now running whole shifts or entire factories. With the estimates running around that only 40% of the mineral riches of Turkey have now been and/or are actively mined, the advent of mineral processing in Turkey will continue many years into the future.

MADE IN TURKEY

There is a huge increase in the number of local suppliers compared to, say, ten years ago, not only in terms of equipment for chromite processing but in all sectors of mineral processing. Most of these companies are small in scale, primarily manufacturing customized gear for the processing industries, and are primarily located in the Organized Industrial Zones (OIZ) near the bigger cities in mining regions. Companies from Yıldırım - Bursa, Çayırova - Kocaeli, Tuzla - İstanbul, Mecidiyeköy - İstanbul and Ostim - Ankara can produce many types of mineral processing equipment and their spare parts, like rod mills, ball mills, screens, polyurethane spares, pumps, pump liners, mill liners, hydrocyclones, shaking tables, spirals and many more. With these local options available, mineral processing plant erection and machinery costs can go down substantially. For instance, an official quotation for a mineral processing plant project around 110 million euro can easily go down to 60 million euro with a Turkish brand.

Just in case of a misunderstanding; these companies are not sweatshop producers but pioneers of Turkey.

PROCESSING TECHNOLOGIES

Today’s chromite processing technol-

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ogy is nothing new and exploits the relative movement in response to gravity to separate the mineral from the dirt. For many years, the basic design of the equipment and the process flow has not changed much dramatically, but a better quantifiable understanding of the concentration processes has resulted in incremental changes. The proliferation of many entries into this field has produced a fast learning environment, with prototype production followed by testing it with a certain type of ore-experimenting-copying-altering, and producing the final product by the well-known iterative innovation cycle. Still, there is some rather new equipment available. All these methods below are available in our country and are being used to recover chromite in Turkish processing plants.

MGS (MULTI GRAVITY SEPARATOR): This is modeled after a shaking table in action.

Shaking table can only utilize the g-force which naturally comes down towards the earth. But when the shaking table rolls on itself and attaches at the ends, one ends up with a multi gravity separator. This cylinder rotates at a speed generating a centrifugal force, and so another g-force is now created. The revolution speed allows one to control the force, which is actually constant for the shaking table.

MGS can be used for fine particles below 200µ to 10µ at a 55% max recovery performance. To get rid of -10µ, MGS must be utilized with a hydrocyclone group (usually mushroom type).

CENTRIFUGAL CONCENTRATORS: This semi-continuous (batch) concentrator is a specially designed fluidized centrifuge that separates heavy material, such as gold and platinum, from lighter background material such as quartz. The material must be ground to an appropriate size, mixed with water, and then fed into the machine. Equipment is generally applied to materials in which the heavy component to be recovered is a very small fraction of the total material. For most primary applications the grade of the heavy material will be less than 500 grams/ton (0.05% by weight).

CENTRIFUGAL JIG: Yet another centrifugal concentrator, but this time it is a jigging machine that’s rolled. It is used with a screen for collecting ragging materials (usually metal balls with proper density).

Processing can go down to 10µ.

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Apart from this rather new technology, many modified shaking tables (e.g. zigzag) and many kinds of spirals utilized for different ore types are both used and produced in Turkey by totally domestic companies. Furthermore, some concentrator plants are capable of producing their own equipment, totally customized to suit their own needs.

CONCLUSION

In recent times, Turkey performed very well and excelled in the chromite concentration branch of mineral processing, with the know-how in the design, engineering and equipment improved immensely, following a reiterative method commonly seen in innovation models. There are chromite processing plants available for processing 7% feed grade at a capacity of 4000x2 tpd, which is world class. Turkish universities are graduating good engineers with an engineering degree in mineral processing. The Turkish government’s focus on mining to improve its share in the overall country’s GDP is also encouraging for more exploration, assaying, and for both established and entrepreneurial companies to start mining ventures, especially in chromite. Many local companies are producing high quality machinery that can now compete with their foreign competitors. “A new era in Turkish chromite processing is under way, guided by Turkish engineers…”

REFERENCES

Eti Krom Research, Yıldırım Group of Com. Aydın, M, 2001, Etibank Güleman Kef Konsantratör Tesisi Artıklarının Değerlendirilmesi, Diyarbakır. www.knelsongravitysolutions.com/ page352.htm en.wikipedia.org/wiki/Sepro_Mineral_ Systems www.mertamakina.com www.remas.com.tr/en/profil.htm www.ersel.com/sayfa/2/anasayfa

CONTACTS Barış Elçi1, Alp Malazgirt2, Ph. D. 1) Project Manager, Yıldırım Group of Companies 2) CEO, Metals & Mining, Yıldırım Group of Companies E-mail : baris.elci@yildirimgroup.com Phone : +90 (212) 290 30 80 Website : www.yildirimgroup.com

Profile www.miningturkeymag.com

Plastic Company in Mining Business Şen Plastik Şen Plastik was founded in 1983 by Hüseyin ŞEN in Bayrampaşa, İstanbul. Şen Plastik started production and introduction solely of mining explosives auxiliary materials, some types of work safety gears and other mining related materials as of the year 1990.

We have provided our miners with the best use of our products by demonstrating our products in practice on site at the mining establishments.

We aim to get through to the miners we haven’t been able to contact until present time through the Madencilik Türkiye Magazine and to introduce our products and to be of assistance to improve the occupational safety and health to a higher level at their establishments.

PLASTIC WATER TAMPING CARTRIDGES

Prevents the hazardous environmental impacts of explosions. In the sense of labor, the time reserved for tamping is minimized by means of water tamping. Hole drilling work which once had been the most time consuming work is now the fastest application, besides this, mud tamping work which had been a simple matter is now the most time consuming application. Because filling the holes with explosives after drilling the chimney holes and tamping with mud takes almost the same time with hole drilling. By using water tamp-

ing method, it is possible to reduce this time at the rate of 75%. On the other hand, bringing the mud to the working area, preparing and tamping is very onerous; therefore this process is disadvantageous because of the loss of time and manpower. Moreover, each mud tamping material gets prepared for each charge session. Because the clay material gets dry in time and loses its elastic feature. Therefore, it needs to be freshly prepared for each charge session.

Both tamping and tamping materials which have an impact on the explosion are parts of an explosion cycle and they are of capital importance in the efficiency of explosion and particularly in the hazardous environmental impact of the explosion. The importance of tampering gets crucial in underground explosions which are closed to atmosphere more than in over land explosions. The intended use of tamping in underground explosions can be summarized as below; •

• • •

Transmitting the shock waves by keeping the explosive in the hole and confining the explosion gas which emerges as a result of the explosion which breaks the rocks, Reducing the total and respirable rate of dust, Shortening the time to enter the environment after discharge, Suppressing the hazardous and

• •

toxic gasses which emerge after discharge, Minimizing the risk of firedamp explosion, Preventing the coal dust to go off and explode during the explosion.

ANFO CHARGE TUBES & BLAST TUBES

For the establishments which use anfo pumps and which perform stope explosions; Antistatic anfo charge tubes are manufactured in various sizes and packed in 50 meters coils and Blast Tubes are manufactured 89 mm. Diameters and in 5 - 20 meters lengths.

DYNAMITE CASES

Dynamite cases have worldwide accepted German LOBA Certificate. Ergonomic and very durable plastic dynamite cases with lockable lids, and detonator cases have two sizes with 15 and 20 kg capacities of explosives.

SAMPLE CASE FOR DRILLERS

Sample ore storing cases with 10 departments which can be attached to each other, durable, suitable for piling and neat archiving, convenient for using multiple times, protects from cold, hot, daylight and water.

PLASTIC SHINGUARDS

Shin guards are the safety equipment which the leaders of the underground mining business consider as crucial as helmets. Plastic shin guards significantly prevent leg bone injuries and therefore prevent medical treatment and labor loss.

CONTACTS Şen Plastik Auxiliary Materials For Explosives Address : İsteks San. Sit. C 4/3 İkitelli Organize Sanayi Bölgesi - İstanbul - Turkey Phone : +90 (212) 485 66 13 - 15 Fax : +90 (212) 485 66 14 E-mail : senpls@superonline.com Website : www.senplastik.com

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Article www.miningturkeymag.com

The Power of Social Media in the Mining Industry Modern technology and great advances in engineering have mitigated much of the negative environmental impacts of the mining industry, especially greenfield exploration projects.

Despite all of this, industrialization throughout the globe is under siege.

Nearly any large scale project requiring governmental permits and public input has seen significant increase in delays, lawsuits, outright blocking by courts or even cancellation of projects. In the past, most of the companies applying for permits assumed that good engineering, local goodwill projects, corporate social responsibility (CSR) efforts, and following the requirements of the agencies issuing the permits would assure that a project would go forward.

That is no longer the case anymore.

Opponents to mining activities are using a new powerful force that is transforming how we communicate, the political process, dating, social networks, marketing, even sparking revolutions and overthrowing governments, this new force is Social Media.

The energy supply is one of the most important issues of our day and there are well funded forces attempting to reduce or eliminate fossil fuel use and development by blocking the mines, fracking, or transportation networks used to extract and to move the fuels from production areas to consumers.

Yet many consumers of those fuels are

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influenced through social media to act against the sources and networks of the very energy we all consume. A key means of influence and organization against mining is social media. Industry can use these same tools by first understanding, then harnessing its power.

This article covers the myriad issues, explains the technology, its power, weaknesses, and provides real case studies and tools.

to perceived technical issues. At the strategic level, hostility toward development projects may take the form of laws or regulations, such as classifying carbon dioxide as a pollutant or blocking strategically important infrastructure projects such as pipelines. At the tactical level, projects can be blocked by continuously raising fears, doubts, and technical/social concerns at every stage of the permitting process.

Development projects are needed for sustainable growth of an economy.

However as people become increasingly isolated from the commodities that they consume, a type of idealism can incline beliefs that economic growth or consumption does not require energy and raw materials or that recycling can fulfill all demand. This idealism has a negative impact when groups organize to block development projects. If one is against industrial development, a key means of blocking such development is to attack projects by continuously raising concerns, whether valid or not, that are pseudo-technical in nature associated with the many overlapping and confusing regulations at the municipal, country, state, or federal levels. Hence the intellectual ‘battlefield’ has two fronts: a strategic front where industrial development has been vilified and so a large percentage of the populace is hostile, and a tactical front, where projects can be blocked due

Action is needed at both the strategic and tactical levels. The strategic level can follow the patterns of a political campaign and very often would need to act in this fashion such as supporting a candidate over another or pressuring an elected representative to support a particular path. The tactical level must be used to educate the public and combat specific technical misinformation spread by opponents. Social media plays a very important role in both the strategic and tactical arenas.

Sometimes strategy has a direct impact on the tactical level, for example, when permits are legally and technically valid, projects can still be blocked or cancelled through sufficiently violent or loud social action. For example, Barrick’s Pasqua-Lama and Newmont’s Conga projects in South America had gained their environmental permits, yet were blocked by very vocal and often non-local public protests by a small group of stakeholders. In North America, nearly every newly proposed mine or even mine expansion is seeing a dramatic rise in the effectiveness of organized opposition to new projects, such as coal terminals on the west coast or new mines in Arizona, Wisconsin, or Minnesota. The opponents are motivated by a general dislike of coal or mineral development projects and they attempt to delay or to deny permits at every stage of the permitting process. These opponents are well integrated, tech-savvy, active in their opposition, and are integrated into a tight network. The proponents of

September 2013

development are more often isolated, inactive, and not-yet familiar with the full-power of social media.

Social media is a rising force in both developed and developing countries.

Some interesting statistics include: •

Climate change activists have, in the wake of stalled legislation to cap greenhouse gases, have identified social media as one of the most effective tools to create seemly ‘grass roots’ efforts toward their cause such as pressuring Facebook to only use green energy or block the Keystone XL pipeline.1

•

Brands that have taken decades to build can be easily marred by a single individual with a twitter account.2

•

25% of search results for the World’s top brands are links to user-generated content.3

•

90% of consumers trust peer reviews4

•

Only 14% of consumers trust advertisement5

•

93% of marketers use social media for their business6

The above statistics are simply a result of social media’s ability to effectively and easily communicate and create social networks of people. A key trend that is most important to the permit-

ting process is the overreliance on our peer network’s opinions (consumer peer reviews) over scientifically vetted and detailed explanations of facts. For example, in the case of applications for environmental permits, engineering firms must use accepted engineering practice when undertaking an impact study or analysis. However, opposition groups are not bound by engineering ethics or factual representation.

Therefore, by extending this logic, an engineer with years of education and decades of experience has less credibility than a friended peer who ‘dislikes’ a particular project. Should a company applying for a permit be found to falsify or embellish an impact study, the permit would be revoked, yet there are no consequences when opposition opinions or misinformation are found to be false. Traditional news media cannot be counted upon to inform the public since journalists are increasingly reporting on concerns that are being expressed in social media, not on the truth or validity of those concerns.

Social media also includes the many analytical tools to help visualize, analyze, and derive conclusions from the extremely large and growing data sets.

This area of data analysis has its origins in data warehousing and business

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Figure 1. Word cloud For President Obama’s speech on climate change at Georgetown University.

intelligence. This is the enabling technology that helps clean and prepare the huge social media data sets for easy analysis by users and the application of more complex analytics, often referred to as data mining. In the mining industry, social media is used to a limited extent as an outward communication tool, like an arm of public relations (PR), or worse, not at all. It is far better used for: •

Understanding stakeholders

•

Listening, characterization, engagement, and feedback tool

•

Rapid alert and response tool

•

Creating and building a network of supporters

•

Learning from the mistakes and experiences of peers

Social media cannot be treated as a traditional PR exercise. The time, expense, and inflexibility of focus groups, formal interview-based surveys, wordsmithing a communique or campaign, or the legal department’s usual vetting of communications cannot keep pace with social media. However, the value of social media is in building and engagement with a network of supporters, the information behind the content, the ability to link and visualize content, and users’ interconnections.

People may often focus on the content, such as what is said in a particular blog, shown on a YouTube video, what is tweeted, however, the value of social

56

media is also derived from the analytics behind the base content, such as how many people have viewed, liked, followed, re-tweeted, commented, etc. on the content. Even traditional media typically hosts a ‘comments’ section for each print article, radio story, and television report on the webpages of the old-media outlets, where a vibrant, frustrating, often rude, and thoroughly insightful conversation occurs. Basic network traffic such as Google Analytics can be very informative by tracking user visits, what they are reading, where they live, etc. A great deal of information can also be learned when you host your own Facebook page, twitter account or YouTube channel, especially if users friend, follow, or subscribe. Each of these social media tools have their own analytics which is intended for use to build followers, measure success, and monitor comments. Furthermore, software called Application Interfaces (APIs) are made available for software developers allowing extraction of user and online interactions into databases for further analysis.

Since social media depends on online advertisement revenue, they are continuously incentivized to provide as much information as possible, usually for free, so that companies are more likely to buy advertising space.

There are also many interesting online tools that help visualize various elements of online engagement. For example, Figure 1 is a Wordle of President Obama’s 2013 Georgetown speech on climate change in a word cloud, which is a means of representing a large number of words into a single visual representation.7

September 2013

Figure 2 is a spider URL scrape of a popular blogging site in Peru with applied data mining algorithms to track sentiment. A URL spider tracks the links where bloggers mention other bloggers’ blogs. Sentiment mining is where certain key words are mentioned in the title or content of the blogs that one might consider negative, such as terrible, polluting, greedy, degradation, etc. The tight yellow network represents the opponents (negative sentiments) of a mine named Tia Maria in Peru, the large purple network are those that are indifferent (or that do not mention the project), while the small isolated pockets of light and blue multi-colors are the proponents (positive sentiment) for the project.

One can immediately see that the opponents are far better interlinked than the proponents.

Mining companies can no longer solely rely on good engineering, corporate social responsibility, and a good relationship with elected officials to get permits. Keeping silent in the face of misinformation and outright absurd accusations is no longer an option since misinformation, repeated often enough, becomes the truth in the eyes of the public. However, companies cannot divert resources to address each and every misrepresentation or outlandish comment. Using internal PR or a contracted firm to draft and issue public statements on the same pace and scale as the opposition activity in social media is not feasible.

Instead, companies and support institutions must leverage the power of social media to create a network of pro-

Figure 2. Networks of opponents (yellow top portion), supporters (isolated multi-colored pockets), and Neutrals (right purple) showing a tight interconnection among opponents and isolation among proponents.

Engine Results 4- www.nielsen.com/us/en/newswire/2009/ global-advertising-consumers-trust-realfriends-and-virtual-strangers-the-most.html 5- “Marketing to the Social Web,” Larry Weber, Wiley Publishing 2007 6- www.socialmediaexaminer.com/socialmedia-marketing-industry-report-2011/ 7- Instructions to recreate: • Go to www.wordle.com • Paste the speech (document provided) • Use ‘Coolvetica’ font, Layout mostly horizontal, color milkpaints.

ponents and empower them with easy access to facts as well as an alert system when misinformation is detected.

A proactive social media strategy can also include analyzing risks, evaluating trends, or even viewing and learning from the experience of peers. Opposition groups frequently share tactics, information, networks of supporters and alerts, proponents of development must learn to do the same.

REFERENCES 1- www.pbs.org/mediashift/2010/10/howclimate-activists-are-warming-to-socialmedia281 2- www.fastcompany.com/1686631/whyenvironmental-activists-embrace-socialmedia 3- Source: ClickZ Stats SES Magazine June 8 page 24-25 Chris Aarons, Andru Edwards, Xavier Lanier Turning Blogs and user-Generated Content Into Search

CONTACTS Sean Dessureault1, M. Mustafa Kahraman2 1) Assoc. Prof., The University of Arizona, Department of Mining and Geological Engineering E-mail : sdessure@email.arizona.edu 2) The University of Arizona, Department of Mining and Geological Engineering E-mail : kahraman@email.arizona.edu

GLOBAL COVERAGE - REGIONAL FOCUS

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Organisational Readiness - Operational Effectiveness - Business Alignment - Asset Management - Project Recovery - Cultural Change Mustafa Kemal Mah. 2146. Sok. Demirler Atlas Plaza No: 14/16 06510 Çankaya, Ankara / TURKEY T :+90 (312) 219 44 15 F :+90 (312) 219 44 59 www.amejamieson.com | info@amejamieson.com

Article www.miningturkeymag.com

Global Comminution

Collaborative - An International Research Team INTRODUCTION

The term collaboration refers to the act of certain individuals working together as a team in an intellectual endeavor or simply working together to perform a specific task. It is becoming increasingly important in the modern world, as human being become more connected around the globe. In many industries route to success passes through effective communication and ability to work as a team in a collaborative manner. Mining engineering is a multi disciplinary work that requires the maximum collaborative effort in the life cycle process of rock to ore.

Comminution is a process in which solid materials are reduced in size through crushing, grinding and other processes. This process is an important operation in mineral processing and other fields. However, as given in Figure 1 comminution is an energy inten-

sive process and consumes up to 50 per cent of a mine’s power supply and up to 11 per cent of the world’s energy.

Improved technologies in this area will increase the amount of energy available for other uses across the globe.

Comminution also has to be integrated in the mining chain therefore any efforts in this area should consider the following items.

•

•

•

Integration up-and down-stream in the mining process so as to identify and utilise the best opportunities for the mineral extraction process as a whole.

Working in geometallurgy to characterise the response of the rock to a systematic series of treatment processes, of which we are part.

Working with mining engineers on opportunities for early recovery and waste removal, along

•

•

•

with reduction in comminution energy requirements.

To be integral to the design and operation of the concentration step-in tuning the presentation of the liberated particles to downstream processes.

Improved understanding to how the many components in an ore body respond to the breakage and classification processes is essential.

Tailoring the products to minimise downstream impacts, e.g. excess generation of fines and acid-generating species that influence water recovery and pollution, and potentially increase the capability to extract more from the ore.

The drivers and needs of the industry are evolving, so tools and capabilities need to advance to adequately address these.

New drivers that require a considerable step change to meet the new challenges facing our industry include: • • •

•

Figure 1: Current energy use by equipment in the mining industry. after Powell and Bye (2009) - Tenth mill operator’s conference Adelaide

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September 2013

Energy - The mining industry is being targeted as an excessive user of energy; Water - the limitation in production due to a shortage of availability; massive low grade ore bodies - the dropping ore grades lead to vastly increased tonnages and treatment of waste and thus processing costs; Increasing demand for natural resources-driving up the total energy and water usage within the mining sector.

This article focuses on an international collaboration that addresses the new knowledge needs that arise from these changing drivers; the tools that are required to supply these needs;

the capability that is required to deliver on these; and what the new outputs relative to today’s capabilities may be.

GLOBAL COMMINUTION COLLABORATIVE (GCC) Global Comminution Collaborative (GCC) has been set up with 5 research groups from different continents in 2012. These centres are located at the Julius Kruttschnitt Mineral Research Centre (JKMRC) at The University of Queensland (UQ), at University of Cape Town in South Africa, at Hacettepe University in Turkey, at Chalmers University of Technology in Sweden, and at the Laboratory of Mineral Technology, at the Federal University of Rio de Janeiro in Brazil.

These centers cover a range of required skills, as given below, along the process chain and across the skills base: crushing, milling, dry processing, mechanistic modelling, ore breakage characterisation, classification, fine grinding (not adequately), circuit design, process optimization, etc.

•

• • •

•

Ability to remotely manage sitebased projects and compose the data into coherent and meaningful outcomes with an impact on the research learnings and the site performance.

Mathematical: data analysis, modelling, statistical analysis, Site surveying: collection of highquality and meaningful data on operating sites Processing understanding: indepth understanding of the processes in a concentrator, how to operate them well, provide direct and useful advice to sites that will deliver measurable changes in performance. A guru who makes a difference.

Process modelling: the traditional skill of developing applied mod-

•

•

•

•

•

els of equipment and processes based on lab, pilot and production data. Developing these to the stage of working models in simulators Ore breakage and liberation characterisation. Tests that provide the correct type of data relevant to the mechanistic models we are developing.

Computational: capability to conduct substantial DEM, CFD, etc simulations to provide understanding of and data for input to mechanistic modelling of processing equipment.

Circuit design: understanding of how the equipment and processes integrate into an overall circuit performance. Ability to develop and use appropriate simulation techniques, such as JKSimMet. Liberation modelling: measurement and modelling of how the different components in an ore break, separate and present to downstream processes. For most of the comminution chain this is not liberation of the valuable mineral, but rather of the components that impact the next stage of processing, such as classification and further breakage.

Linking the work increasingly with Flotation and recovery so that the ‘fence’ between this area and comminution disappears.

The GCC is governed and managed by the Advisory Committee which considers and advises on •

• •

Matters relating to achievement of the objectives of the GCC to effect to the requirements of the parties Strategic guidance to the parties in the management of the GCC and GCC projects.

Securing potential funding for the GCC

Joint research and development that addresses the industry needs and the future evolution of the industry is objected by the collaborators. This objectives can be outlined in the following areas.

• •

• • • •

• •

• • • •

Develop the potential of producing top research outputs on challenging and interesting topics Deliver the best outputs on the wide front of comminution skills needed by the worldwide mineral processing and construction industry Delivery of practical improved to operating plans Contribute to the improvement in the future plant design and operation Product top quality skilled personnel for the minerals industry Identification of the opportunities for improving plant performance through on site review and research Practical implementation of site based opportunities Accurate models of process equipment, including response to ore variability and focussing on mechanistic fully predictive modelling capability that incorporates variability and mineral structure Development of meaningful ore characterisation tests Incorporation of liberation into process models Circuit design-including incorporating new and novel equipment Minimisation of new energy and water use and of environmental impact

Another key objective of the GCC is to provide the opportunity for postgraduate students to participate in the research activities. Postgraduate students are enrolled at any of the parties of the GCC which being jointly supervised across participating universities.

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Students take the advantage of the wide and high-level skills of the centers to improve their ability and experience in a wider spectrum than just their project.

Development of the student skills to enhance the post-grad experience is achieved by involving them in extra work from which they can learn new and appropriate skills.

As briefly outlined below the collaboration has a structured development program.

Starting with pilot plant hands on work, moving on to research and consulting work at sites and then finally helping with data processing, analysis and integration. This would provide students with opportunities to become familiar with laboratory and pilot equipment, exposure to plant scale equipment and operations and processing the plant survey data and understanding the research outcomes.

Try to do this across centers and across the world.

Building on student capability is tailored according to industry’s requirements as briefly outlined below.

• • • •

Consistently improve plant performance Design, sizing, equipment selection To understand circuit layout To follow new technology

At the moment GCC has got 18 key researchers in five institutes and 15 postgraduate students funded through the GCC projects.

Collaborative (GCC) to be managed and run from JKMRC. The Centre, launched at UQ’s Julius Kruttschnitt Mineral Research Centre (JKMRC), affects the transfer of knowledge and technology to operations and projects in the design, commissioning and optimization of production.

Under the Anglo center umbrella both the core research studies and the process improvement studies have been conducted. At the moment GCC is working on 5 different core projects each focusing on novel techniques to improve the technology.

Conducting core research projects that investigate novel ways of liberation in order to meet the requirements of future mining technologies is a focus of the Centre, for which Anglo American has committed substantial amount of funding.

The core research projects, which focus on issues common to the industry, are structured to be spread across the five centres of excellence of the GCC, appropriate to their specific expertise.

The process improvement studies are achieved by site specific projects. Last year the team tackled with 5 site-specific projects (2 in America, 2 in Africa and 1 in Australia) at Anglo center. As a result of collaborative work or as a direct outcome each site had some benefits through these studies. These benefits can be summarized as, •

The collaboration has got a central funding structure that is not tied to or controlled by any center or University.

Funding of the Global Collaborative is sought from the large world-players.

• • • • •

Minerals producers Aggregate industry Cement producers Equipment suppliers Government

ANGLO CENTER - GCC IMPLEMENTATION PLATFORM Anglo American is funding five centres of excellence as a Global Comminution

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The team visited the sites to bring their combined expertise to bear on improving the operation.

• This provided unparalleled input from a broad range of expertise that simply cannot be accessed from any other source.

• The group reviewed the operation and provide rapid and direct feedback on how to improve it • The group determined opportunities at those sites.

• Simulated the optimization scenarios • The group assisted in implementing recommendations and providing on-site training

•

Predicted the best expansion scenario and set up the bridge between the site and the engineering company • Training and development of the student, staff member and site staff was achieved through integrated work.

• The group tackled research issues of direct interest to the sponsors.

• Technology transfer meetings for site specific only. These meetings provided: • outcomes of process improvement tackled worldwide by the group • research progress • opportunities for technology uptake • contact with top quality researchers and an opportunity to meet students who are potential employees.

CONCLUSION As a conclusion it should be mentioned that Global comminution collaborative is a good indicator and example of the requirement of setting up international teams in the engineering discipline. To pool the resources have got significant importance to use the expertise, skilled man power and funding. Such a pooling brings together overlapping skills and experience, and enable worldwide delivery to industry.

Globally the industry seeks for skilled groups to work with provided that the needs of the industry determined well.

These collaborative efforts not only provide improved processes but also provide competent staff required by the industry.

CONTACTS Hakan Benzer (PhD. Prof.)

Hacettepe University Mining Engineering Department E-mail : benzer@hacettepe.edu.tr

Article www.miningturkeymag.com

Are Certain Minerals Still Under State Monopoly?

HISTORY OF STATE MONOPOLY When the Mining Law No. 6309 was in effect during the 1950’s, exploration and operation of minerals were open to private entities.

1

During the ‘80’s, the government enacted Law No. 28402, and subjected boron salts, uranium, thorium, asphaltite and trona to the State monopoly. The licenses issued for these minerals under Law No. 6309 were to be canceled.

In 1985, Mining Law No. 3213 (the “Mining Law”), which repealed Mining Law No. 6309, came into effect. Exploration and operation of thorium and uranium mines after the effective date of the Mining Law were made subject to the Mining Law, and as a result, the State monopoly was abolished with respect to thorium and uranium.

3

Since no change was made with the Mining Law with respect to trona and asphaltite mines, these mines were still under the monopoly of the State. As the expected efficiency of the operation of these mines could not be obtained and many zones remained inactive as an outcome of the State operation of these mines, the minerals trona and asphaltite were removed from the scope of Law No. 2840 by Law No. 39714, in other words, they are no longer subject to the State monopoly.

As a result of many subsequent changes, the government reached the intended result and kept boron salts under its monopoly and opened thorium, uranium, trona and asphaltite mines to private sector.

CAN RADIOACTIVE MINERALS BE OPERATED BY THE PRIVATE SECTOR? After the changes enacted by Law No. 3971, the terms “uranium” and “thorium” remained in the text of the older Law No. 2840 and this caused confusion as the intended result was not to maintain these mines under the State monopoly. Hence, in practice, despite the contradiction in the relevant legislation, the General Directorate of Mining Affairs has been issuing licenses

for uranium and thorium mines pursuant to the Mining Law. We believe that interpretation is ambiguous based on the wording of the Law No. 2840. However, when the intentions of the lawmaker and the implementing governmental authorities are taken into consideration, the operation of uranium and thorium mines should be subject to the Mining Law, i.e., operated by the private sector.

The intent and purpose of the lawmaker is evident since the Mining Law explicitly revoked the State monopoly on uranium and thorium mines imposed by Law No. 2840.

Also, the Mining Law is the most recent legislation; due to the general principle of law (lex posterior derogat legi priori) the latter law shall supersede the prior law.

DRAFT LAW ON BORON SALTS There is no doubt that boron salts are still under State monopoly. Eti Maden (Eti Mine Works), a state economic enterprise holding the boron licenses in Turkey, outsources the majority of its operations. However, some NGOs have been filing lawsuits claiming that mining operations cannot be outsourced due to the State monopoly over boron salts. Most of these cases have been settled in favor of Eti Maden; however, some service procurement agreements were cancelled. It is also observed from the reasoned rulings that not all of the judges of the Council of State (Danıştay) share the same view. This dissention between the judges has led to disruptions in the activities of Eti Maden, resulting in losses of exorbitant sums.

For the purpose of clarifying the ambiguity, Eti Maden proposed a draft amendment to Law No. 2840, which is currently in the agenda of the Turkish Grand National Assembly. The draft in question explicitly lists the works to be carried out for the procurement of services with respect to boron salts.

CONCLUSION We believe that outsourcing mining activities by way of service procurement does not constitute a violation of the “State monopoly”, as State monopoly does not mean

that any and all activities shall be strictly carried out by the State, since the State preserves ownership over products and license zones. However, as an ambiguity has arisen, a clarification is necessary. Thus, with good reason, the draft amendment has been proposed. This amendment does not change the course of implementation; rather, it merely clarifies the implementation adopted by Eti Maden for the last twenty years.

Since Eti Maden proposed this amendment solely for boron salts as a clarification of the status of boron salts was urgently required, the ambiguity will still remain for uranium and thorium mines. In our opinion, there is no doubt that uranium and thorium can be explored and operated by private entities. However, in order to avoid any confusion that might be faced in the future, as Eti Maden has faced for outsourcing mining activities with respect to boron salts, this draft amendment is a good opportunity to finally remove “uranium” and “thorium” from the text of Law No. 2840 as well.

REFERENCES 1- Published in the Official Gazette 8655 dated 11 March 1954.

2- Published in the Official Gazette 18076 dated 13 June 1983.

3- Published in the Official Gazette 18785 dated 15 June 1985.

4- Published in the Official Gazette 21854 dated 19 February 1994.

No. No. No. No.

CONTACTS Şebnem Önder1, Ayşe Eda Biçer2 , Işıl Selen Denemeç3 Çakmak Avukatlık Bürosu Attorneys at Law Address : Piyade Sokak, Portakal Çiçeği Apt. No: 18, C Blok, Kat: 3, 06550, Çankaya Ankara - Turkey 1) Partner, Çakmak Avukatlık Bürosu 2) Associate, Çakmak Avukatlık Bürosu 3) Legal Intern, Çakmak Avukatlık Bürosu Phone : +90 (312) 442 46 80 Fax : +90 (312) 442 46 90 Website : cakmak.av.tr

September 2013

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Event www.miningturkeymag.com

XVII. International Coal Preparation Congress - 2013 İstanbul XVII. International Coal Preparation Congress (XVII. ICPC) shall be held at Grand Cevahir Hotel and Congress Center in İstanbul between 1 - 6 October 2013, under the auspices of T.R. Minister of Energy and Natural Resources Taner Yıldız. Congress shall be accomplished in two parallel sessions in which more than 100 presentations shall be made which are considered worthy of being introduced among the declarations received from 25 countries. In the congress, besides technical sessions, an exhibition named; ICPC 2013 EXPO shall also take place. Congress language is English, and simultaneous translations in Turkish, Russian and Chinese shall be also provided.

The purpose of these congresses, in primary years, which are held and hosted by member countries in every four years since 1950 was to support the coal industry in French, Belgium, Holland and Germany which collapsed in the 2nd World War. Within the foundation years of ICPC, International Organization Committee (IOC) consisted of the representatives of Belgium, France, Germany, Holland, England, in following years; countries such as Australia, U.S.S.R., India , Canada, Japan, Poland, Republic of South Africa became members of IOC as well . There are still 12 countries with full member status to IOC; which are; U.S.A, Germany, Australia, Republic of China, Republic of South Africa , India, , England, Canada, Poland, Russia, Turkey and Ukraine, whereas Hungary, The Czech Republic, Slovakia and Greece are represented with candidate country status.

The firs ICPC Congress was held in 1950 in France - Paris; Congresses were hosted by France, Australia, America twice, whereas hosted by Germany,

62

Belgium, England, U.S.S.R, India, Canada, Japan, Poland, Republic of South Africa and China for single time. Turkey, which is member of IOC since 1988, shall organize this Congress in 2013 for the first time.

Organization of Congresses is executed by IOC which still consists of 12 persons. Presidency of IOC is undertaken by the IOC member of the hosting country of that congress. In the opening ceremony of the congress; representatives of IOC member countries introduce their own countries’ coal reports and provide information about coal preparation applications.

held in 2016 in St. Petersburg, Russia.

Within the scope of XVII. ICPC; daily excursions shall be organized for the delegates and their spouses, besides; post congress tours including Turkey‘ s historical and touristic places, as well as coal preparation plants, shall be arranged as well.

Turkish Organization Committee hereby invite you to participate into XVII. International Coal Preparation Congress which shall be held in İstanbul, where the continents meet, and to meet with top level bureaucrat and coal experts coming from various countries of the world.

The first IOC meeting of XVII. International Coal Preparation Congress was held in Manisa - Soma on 3 - 4 October 2011. 21 persons totally, the representatives of IOC members; Germany, Australia, Republic of China, Republic of South Africa, India, Canada, Poland, Russia, Ukraine and Turkey, attended the meeting, except the deceased U.S.A. representative.

IOC members met for the second time between 7 - 9 November 2012 in İstanbul, at Grand Cevahir Hotel and Congress Center where the XVII. ICPC shall be organized and evaluated the abstract declarations sent to the Congress. Dr. Nevzat Kavaklı, the Deputy Undersecretary of Ministry of Energy and Natural Resources attended the meeting as well. In that meeting, the country which shall host XVIII. ICPC. To be organized in 2016 was selected as well.

Due to the presentations made for XVIII. ICPC, which India, Russian Federation and Australia became a candidate, voting was taken and Russian Federation was elected as the host country of the next Congress . XVIII. ICPC. shall be

September 2013

CONTACTS Gülhan Özbayoğlu (PhD. Prof.)

XVII. ICPC and IOC President Address : Grand Cevahir Hotel İstanbul Phone : +90 (312) 433 27 25 E-mail : icpc2013@icpc2013.com gulhan@atilim.edu.tr Website : www.icpc2013.com

www.icpc2013.com

XVII.

INTERNATIONAL

COAL PREPARATION

CONGRESS &EXHIBITION ISTANBUL 1-6 OCTOBER 2013

GRAND CEVAHÄ°R HOTEL

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