Mining in Turkey
Mining sector in Turkey is growing in parallel with country’s strong economy. While sector’s total production value was $2.6 billion in 2003, it has grown so rapidly that it became $13.2 billion by 2014.
Turkey’s position on Tethys-Eurasia Metallogenic Zone which a special kind of ophiolite and stretches from Western Mediterranean through Alpines to Southeastern Europe, then Turkey, South Caucasus, Iran and through Himalayas to China, enables Turkey to offer an important potential to investors in mining sector. As the least explored region in this zone, Turkey is a promising place both for miners and for researchers. Also, since mining in Turkey has solely been surface digging, a great potential of deep drilling is awaiting international investors.
Turkey’s young, dynamic and educated workforce offers a rather qualified labor pool. Five new mining engineering departments were opened in Turkey since 2005 and at the moment there are 24 mining engineering departments in 21 cities. From 2005 to this day, number of mining engineers in Turkey increased more than 50% and reached 20.000.
Advantages Turkey offers to players in mining sectors not only restricted to qualified work force but also includes lower logistics and drilling costs, proximity to important markets, attractive state incentives and rather competitive tax rates.
Direct foreign investment entry in Turkish mining sector was $242 million in 2013 and with a great leap forward, it rose to $449 million in 2014. Exports in mining sector on the other hand has quadrupled in last ten years and rose to $260 million from $42 million.
The fact that number of international mining corporations operating in Turkey was 138 in 2004, and this number rose above 700 in 2014 alone proves that investor’s interest in Turkey is increasing.