Mining Turkey Magazine Sayi3 LQ PDF

by
ISSN: 2146-9423
Mining & Earth Sciences Magazine

01 September 2012 | Vol 2 | Number 3 | www.miningturkeymag.com
• Aldridge Minerals’
Yenipazar Project
Update
• Disruptive Innovation
in the Chromium World
• Investment in Mining &
Beneficiation in Turkey
contents
Mining Turkey is published biannually by Mayeb
Madencilik ve Yer Bilimleri Basım Yayın Dağıtım Ltd.
2....... FROM THE EDITOR
1042. Cd. 1335. Sk. Vadi Köşk Apt. No: 6/8
A. Öveçler / ANKARA / TURKEY
4....... NEWS
Tel : +90 (312) 482 18 60
Fax : +90 (312) 482 18 61
14....... MINING COMPANIES IN TOP 1000 EXPORTER ENTERPRISES OF 2011
[email protected]
www.madencilik-turkiye.com
15....... TURKEY’S MINING PRODUCTS EXPORTS OF THE FIRST HALF OF 2012
General Coordinator
18....... DRILL RIG TECHNOLOGY BY TEKSOMAK - Duygu Özen
Onur Aydın
[email protected]
19....... DASSAULT SYSTÈMES ACQUIRES GEMCOM SOFTWARE - Gemcom Software
Editor - International Relations
O. Çağım Tuğ Europe Ltd.
[email protected]
Administrative Affairs 20....... SGS ANKARA GEOCHEMICAL LABORATORY - Evgueni Terentiev
Volkan Okyay
[email protected] 21....... POZITIF DRILLING INDUSTRY AND TRADE LTD - Pozitif Sondaj
Graphic Design
M. Anıl Tuğ 22....... CWP COAL WASHING PLANTS MACHINERY - CWP Coal Washing Plants
[email protected]
Merve Mallı 24....... ALDRIDGE MINERALS’ YENIPAZAR PROJECT - PROBABLY WILL BE THE
[email protected]
Web Technologies THIRD BIGGEST METAL MINING PROJECT OF TURKEY - Aldridge Minerals Inc.
Bilgin B. Yılmaz
[email protected] 28....... “TURKIFYING” A FOREIGN MINING COMPANY IN TURKEY THROUGH
Legal Adviser
Av. Evrim İnal IPO IN TURKISH MARKETS - Christopher Ecclestone
[email protected]
Academical Advisers 30....... LITHOTHEQUE SYSTEM OF ORE DEPOSIT RECORDS IN MINERAL
Prof. C. Okay Aksoy
Prof. Erol Kaya EXPLORATION: TURKEY AND THE WORLD - Peter Laznicka
Assoc. Prof. Ali Sarıışık
Assoc. Prof. Hakan Başarır 36....... DISRUPTIVE INNOVATION IN THE CHROMIUM WORLD - Alp Malazgirt,
Assoc. Prof. M. Emin Candansayar
Assoc. Prof. Melih Geniş Görkem Kavçak
Assoc. Prof. Niyazi Bilim
Assoc. Prof. Talip Güngör 42....... GRAPHITE: A CRITICAL RAW MATERIAL AND TURKEY - Sait Uysal
Assist. Prof. Melih İphar
Assist. Prof. Nuray Demirel 48....... INVESTMENT IN MINING & BENEFICIATION IN TURKEY - A NATIONAL
Advertising Sales
[email protected] IMPERATIVE - Alan Clegg
Annual Subscription Enquiries
[email protected] 52....... INVESTING IN TURKISH MINING INDUSTRY - Sean Dessureault, M. Mustafa
Kahraman
60....... EFFECTS OF PRICE VOLATILITY ON MINING COMPANIES’ FINANCIALS
AND EVER-INCREASING IMPORTANCE OF CORPORATE GOVERNANCE
Cover Photo AND OPERATIONAL EXCELLENCE - Alper Günaydın, Mine Yılmaz İlkdoğan
Aldridge Minerals Inc. is a near de- of Turkey, approximately 220 kilome-

velopment stage mining company tres east-southeast of Ankara, the capi-
focused on advancing its Yenipazar tal city. Detailed information about the
polymetallic VMS deposit (Au, Ag, Cu, project is at the page 24.
Pb, Zn) in Turkey. The Yenipazar gold-
silver-copper-zinc-lead property is the
company’s most advanced property
and is located at the geographic center
01 September 2012 1
Editor
www.miningturkeymag.com
From Exploration to Production

in Turkey by Foreign Companies
O. Çağım Tuğ | [email protected]
Turkey, with its high potential of pre- and Inmet Mining (49%). In 2002, Inmet their projects in our subsequent editions.
cious metals, chromium, industrial min- bought the six per cent owned by Gama
erals and marble, is one of the strongest for $11 million. The Turkish Government In this issue, we prepared a detailed
potential investment areas of Europe. privatized ÇBI in September 2004. Inmet project outlook of Aldridge’s Yenipazar
The government supports mining and Mining Corporation purchased the re- Prospect, as an example of advanced
production; provides special tax reduc- maining 45% of the shares belonging to level project. You will find the brief out-
tion in the new incentive system and the Turkish Government in 2004 for $64 look of mining in Turkey as usual along
even the drilling expenditures seems to million through a public tender process with company profiles. Peter Laznicka’s
be involved to it. During six months peri- and now owns 100% of Çayeli. article on “Lithotheque System of Ore
od from our last issue published in March Deposit Records in Mineral Exploration:
2012, nothing has gone backwards, all In 2006, Tüprag Metal Madencilik’s Turkey and the World” will give you a
the projects are on the trail, govern- (subsidiary of Eldorado Gold) Kışladağ different idea on keeping databases of
ment’s support is growing and Turkish gold mine started to produce gold and mines and lithologies in the old way.
people are much more interested in min- opened its second gold mine in Turkey, Sait Uysal’s interesting article on graph-
ing ever. Efemçukuru Gold Mine in 2011. Alacer ite which is on the important and critical
Gold (merger of Anatolia Minerals and raw material lists of EU and BGS, shows
Turkey becomes an attractive explora- Avoca Resources in 2011) started its the potential of graphite in Turkey. Turk-
tion area especially for gold and pre- commercial production at Çöpler Gold ish mining industry’s actual atmosphere
cious metals miners because of several Mine in 2011 and became the third gold can be respired by two articles in this is-
reasons as I mentioned above. Since Eu- producer in Turkey. Since 80’s, Teck is in sue: “Investing in Turkish Mining Indus-
rogold has found the first gold mine in Turkey but never started to production. try” by Sean Dessureault and Mustafa
1989 which was a placer deposit, quite AMR Mining produce rare earth metals Kahraman from Arizona University and
a number of foreign companies entered with surface mining methods at Aksu “Investment in Mining & Beneficiation in
Turkey to take their chances. Since that Diamas deposits and they apply hy- Turkey - A National Imperative” by Alan
time, some companies purchased opera- dromining at Çanaklı area. Alamos Gold, Clegg, Chairman of Afrasia Mining & En-
tions and some others along with junior Aldridge Minerals, Ariana Resources, ergy Consulting.
companies continued on exploring all Mediterranean Resources, Stratex Inter-
around Turkey with fresh ideas using national and Red Crescent Resources Mining Turkey Magazine, the voice of
new techniques and technologies with (RCR) have advanced level projects, mining in Turkey, is on its way to give
the motivation of increasing metal pric- planning to start production in 2012 or the most reliable and up-to-date infor-
es. After Eurogold, Çayeli Copper Mine 2013. Centerra Gold, Chesser Resources, mation. Please e-mail me about your re-
started its production in 1994 by Çayeli Eurasian Minerals and Kefi Minerals are quests and critics to keep us on the right
Bakır İşletmeleri AŞ, which was a joint the other foreign companies that have track!
venture of Gama (6%), Turkish construc- advanced exploration projects. For more
tion company, Eti Holding (45%), a com- information, please visit their websites.
pany owned by the Turkish government, You will find detailed information about
Subscribe for new Issue alerts and more!

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 – from research
and product development to on-site service.
Join the movement towards The Future of Mining.

It´s This Way: sandvik.com/thisway
News
Orhan Yılmaz: We Are the Real

Champions of Import of Turkey
Orhan Yılmaz, the General Manager of We have made really serious enterprises “While our establishment was exporting
Eti Mine Works, who made some expla- about production in recent years. We se- $180 million at the beginnings of 2000,
nations in Eurasia - Mena Mining Sum- riously increased our capacity and use of this year, we reached an exportation of
mit carried out in May, gave a presenta- capacity. We were making production of $1 billion. We have a great meaning for
tion in which he shared the topics not 435,000 tonnes while having a capacity national economy.“
known much and commented wrongly of 570,000 tonnes in the year of 2000.
about boron. At the summit, the top- That is we were working below our ca- Yılmaz, indicating that they have been
ics explained by Yılmaz in the panel the pacity. Upon reaching 2011, we are mak- an indisputable leader in the world mar-
theme of which is “The Future of Boron, ing a production of 1,780,000 tonnes ket in terms of both product range and
Thorium, Uranium and Energy”, included while the capacity is 1,725,000 tonnes. profitability since 2005, stated that they
important information for anyone either That means we are making production will increase their production estimation
within the sector or non-sectoral. Impor- over our capacity. We are aiming to ex- of 2 million tonnes to 5.5 million tonnes
tant details of the speech of the General ceed the capacity use of 2 million tonnes within the 2023 target of the govern-
Manager were as follows: in 2012 and 2013. ment and planning as well as financing
of the investments within this scope are
Yılmaz mentioned the followings in his So, what brought us to this point? The ready.
speech: “We have the large part of the worldwide increase in energy prices is a
boron reserves. When considered like bad situation for the world but good for According to what Yılmaz cited, China
this, it is thought that we need to have us. Because, by this means, the whole being in the first place, Exportation of
the big part of the market, as well. The world have begun to concern them- Eti Mining achieving a serious growth in
biggest weakness of the sector of boron selves with the issue of energy efficiency the Far East and America, to China was
is that the consumption side is weak. Bo- recently. One of the most important ele- $9 million in 2002 but it was almost $450
ron and boron chemicals are not prod- ments in energy efficiency is the materi- million last year. This year it is estimated
ucts which are sold as much as they are als of isolation. One of the most impor- to climb to $500 million. Besides, while
produced as assumed. Areas of usage tant raw materials of isolation materials boron chemicals were being consumed
are limited. We supervise the whole pro- is boron chemicals. as 3,1 million tonnes in 2000’s over the
cess from the mine till the chemical. The world, last year this number rose to 4,3
rumors that we sell the mine crudely still As another issue, the topic of alternative million tonnes. The market share of the
afloat in the streets. This is exactly inac- energy has also become a current issue establishment was recorded as 47% last
curate. We do not sell even 1 kg of crude in recent years. Boron chemicals are the year. This year, the market share is ex-
mine. We produce chemicals from mine, second main elements taking place in pected to be over 50%. Therefore, the
we can produce until the latest phase of the production of solar tubes used in establishment is in the condition of in-
boron chemicals. We only sell the chemi- the panels to generate power via solar disputable boron leader of the world.
cal we produce. energy.
One another issue is one of the biggest
Use of composite in many areas from difficulties of the world: CO2. We, by using
airplanes to automobiles thanks to eco- boron chemicals, can transform the SO2
nomical and other reasons is becoming and CO2 in stack gas to another chemical
widespread. You need fiber to produce as 100% percentage in laboratory scale
composite material. And to produce fi- and as 100% for SO2, 70% for CO2 in fa-
ber, you need boron chemicals. That is cility conditions. These outcomes were
why we increased our production capac- studied over and over and made certain.
ity and amount in order to supply boron We will take out a patent for the study in
chemicals for this market.” the upcoming days. This issue is my doc-
torate topic.” He ended his speech with
Orhan Yılmaz spoke within his speech, these words.
in which he especially emphasized the
condition of his establishment in the
national economy, told the followings:
4 01 September 2012
New Ferro Silicone Manganese
Plant at Denizli Province
GMY Madencilik Ltd. announced that manager Mustafa Güçlü stated that GMY This facility will aim to meet the local
they will build a ferro silicone manga- Madencilik will invest $50 million for the demand and reduce the foreign depen-
nese facility at Çardak county of Denizli first phase, $130 million total for this dency along with the Turkey’s first ferro
province which will reduce the import of project. He also mentioned that manga- silicone manganese plant at Kastamonu
the commodity. The construction begins nese is exported as a raw material and province which has opened in Decem-
at the land assigned by Denizli Chamber imported back for the use of iron-steel ber 2011. The plant’s capacity will be 300
of Industry and planned to start produc- industry. - 350 tonnes per day and will employ 550
tion within 1 year. Company partner and people.
Park Holding’s 2011

Annual Report Reveal
Boost of Production YUSUFELİ
MNR
MNR -- TSX
YUSUFELİ GOLD
TSX &
GOLD PROJECT
& MHM1
MHM1 -- Frankfurt
PROJECT–– North
Frankfurt
North Eastern
Eastern Turkey
Turkey
14km
14km mineralized
mineralized trend
trend -- 100%
100% owned
owned byby Mediterranean.
Mediterranean.
44 project
project areas
areas with
with almost
almost 100100 sqsq km
km under
under licence
licence with
with
10
10 operating
operating licences,
licences, 44 exploration
exploration licences
licences
TAC
TAC && ÇORAK
ÇORAK –– Advanced
Advanced Stage
Stage Projects
Projects
Over
Over 2.5M
2.5M oz
oz Au
Au Eq.
Eq. resource
resource –– 1.8M
1.8M ozoz capped
capped gold
gold
PEA
PEA completed
completed 2011
2011 & & EIA
EIA application
application planned
planned inin 2012
2012
ÇELTİK
ÇELTİK && ÇEVRELİ
ÇEVRELİ –– Exploration
Exploration Stage
Stage Projects
Projects
Celtik Discovery: 18.5m
Celtik Discovery: 18.5m of of 6.51
6.51 g/t
g/t Au
Au && 0.9%
0.9% CuCu && from
from
the
the surface
surface 20m
20m 1,62
1,62 ppm
ppm Au
Au
Cevreli Project: 39,5
Cevreli Project: 39,5 g/t
g/t Au in rock
Au in rock samples
samples & & 1,745
1,745 ppb
ppb
in
in soil
soil samples
samples
Contact Christopher
Contact Christopher Ecclestone,
Ecclestone, CEO
CEO ++ 44.795.085.3621
44.795.085.3621
www.medresources.ca
www.medresources.ca
Akdeniz
Akdeniz Resources
Resources Madencilik
Madencilik A.Ş.
A.Ş.
Hakan
Hakan Güney,
Güney, Exploration
Exploration Manager
Manager
[email protected]
[email protected]
Turkish energy, mining, media, com- to the report prepared by Micromine ++ 90.312.426.3064
90.312.426.3064
merce giant Ciner Group’s subsidiary Consulting Services, company’s run-of-
Park Elektrik Üretim Madencilik AŞ pub- mine ore reserves reached to 39.8 mil-
lished its 2011 annual report. According lion tonnes with the grade of 2.4%. The
to the report the company’s copper con- company produced 1 million tonnes of The
The trusted
trusted partner
partner of
of international
international mining
mining companies
companies
centrate production has increased 107%, run-of-mine ore in 2011. operating in Turkey.
operating in Turkey.
asphaltite production has decreased 9%
and total net profit rate increased from The main foundation of Ciner Group,
44% to 59% compared to 2010. The Park Holding announced the agreement
Expertise
Expertise in
in national
national and
and international
international mining
mining law,
law,
company’s net sales from January 1st to with Chinese Harbin Electric Interna- forestry
forestry && environmental
environmental law
law topics,
topics, mergers
mergers &&
December 31st are 151.1 concentrated tional Corp to cooperate for production, acquisitions,
acquisitions, joint
joint ventures,
ventures, regulatory
regulatory and
and compliance
compliance
copper, 19.7 million Turkish liras copper power plant operations and mining in issues.
issues.
cathode, 1.7 million Turkish liras asphalt- June. For the first stage companies will Contact Nursel Atar, Senior Partner +90.312.426.3040
Contact Nursel Atar, Senior Partner +90.312.426.3040
ite and totally 172.5 million Turkish liras develop projects for 600 MW power 41/10 Gardner's Crescent Edinburgh EH3 8DG, UK
41/10 Gardner's Crescent Edinburgh EH3 8DG, UK
approximately. plant in Ilgın county of Konya province Boğaz Sokak 7/8 GOP Ankara, Turkey
Boğaz Sokak 7/8 GOP Ankara, Turkey
and in Kosovo. www.legisterra.com | [email protected]
www.legisterra.com | [email protected]
Park Elektrik announced an important
increase of reservs in 2011. According
Clear the Way For Boron
Production via Private Sector
It will be made possible for the mines, mines of boron, uranium and thorium; ther in our plans or targets”. Yıldız, citing
the production right of which is held to enable to achieve some sort of works that a study is being made on this issue,
by the government according to 2840 via service procurement in order to be specified that they felt the need to cor-
Numbered Law, to also be produced by able to reduce the production costs.” As rect some kind of misunderstandings
private sector. According to the draft it is known, according to the 10.06.1983 in Şanlıurfa though they underscored it
presented by Taner Yıldız- the Minister dated and 2840 numbered law, produc- and continued as follows:
of Energy and Natural Resources- in the tion and sale of the mines of boron salts,
5 March 2012 dated meeting of Council uranium and thorium are made by gov- “Boron is of our precious mines, it has
of Ministers, following a law amendment ernment and this authority is used by a strategic importance. We have no
of a single item foreseen to be made in General Directorate of Eti Mine Works on thought of privatizing the boron. We
the 2840 numbered related law; private behalf of the government. have neither such an intention nor an
sector will also be able to take part in the objective. We want the boron we have
production and marketing of mines like Minister Yıldız: “We Are Not Privatizing to be processed with high technology
boron, uranium and thorium. If the draft Boron Mines” in certain factories; again not vesting in
is agreed, in the forthcoming periods, the any entity, not vesting in the mine. As
production and benefication activities of Law amendment offer which was dis- a government, we want to increase our
the mines of boron salts, uranium and cussed at the Council of Ministers and turnover. I am repeating over and over
thorium will be able to be conducted by proposes the production of boron prod- again, no private sector company can
third parties via a tender initiated by Eti ucts by private companies via service get and utilize the boron mine. The is-
Mine Works but ownership of the mine procurement by the government got sue is under control of the public and
will still be held by the government. reactions from various quarters by be- will stay like this. Privatization of boron
ing commented in the national media mines is not included either in our plans
The excuse of the amendment wanted that boron mines are being privatized. or targets. We will not let the production
to be made is presented to the Coun- Following these reactions, Taner Yıldız, of boron mine by favor of private sector.
cil of Ministers as follows: “To remove the Minister of Energy and Natural Re- We will only permit establishing facto-
several differences in the application; sources, replied to privatization claims in ries on behalf of us and processing the
to provide the fast and effective appli- his speech he gave in a meeting he at- mine we provided on behalf of us. What
cation of production techniques suit- tended. Yıldız, by mentioning that boron will happen to the mine taken out? Again
able for today’s technology at the stage has a strategic importance said “Privati- we, as the public, will get the mine taken
of production and benefication of the zation of boron mines is not included ei- out.” He said.
Magnesite AŞ Plan to Increase

Production Capacity
Eskişehir based magnesite producer production plant for another 15 million in 2013. Magnesite AS export 80% of its
Magnesit AŞ, announced that they are euro. Yearly production capacity of the production to 32 countries like Germany,
planning to increase production capac- company will reach to 290.000 tonnes India, Qatar, USA, UAE, Austria, South
ity. According to Milliyet Business’ news, when the building is accomplished and Africa, Canada, Vietnam, Phllippines,
Magnesite AS, the exporter to 32 coun- this will be the 45 - 50% of Turkey’s to- Saudi Arabia and New Zealand. Their tar-
tries, plans to build a second rotary kiln tal dead burnt magnesite production, he get markets are Russia, Lebanon, China,
with the capacity of 100.000 tonnes/year added. Ukraine, Iraq, Chile and Mexico. The com-
dead burnt magnesite. General Manager pany was the 131. in the list of Istanbul
of the company Ekrem Bulur stated that With the capacity increase, the company Chamber of Industry’s Turkey’ Top 500
the value of this investment will be €25 plans to increase their export value from Industrial Enterprises of 2011 and has
million and there is another plan to build $63 million to $70 million. The export around 1000 employers.
vertical shaft kiln and refractory mortar value is expected to reach $85 million
6 01 September 2012
Ermaden to Put Hasançelebi
into Operation with New Incentives
Erdemir Mining (Ermaden) is continuing lion to be economical.” the employment will rise up to almost
his studies with the aim of establishing a 2000 people.
pelletizing plant in order to process the Orhan the General Manager also spoke
iron reserve in the town of Hasançelebi as follows, “We are aiming to establish Orhan telling that the project is excit-
in the district of Hekimhan in Malatya. a plant which will be able to process for ing said “We can consider this project
The company is planning to unearth the 64 years in the town and produce 3 milas the project of century in Turkey. It is
underground ore with the investment of lion tonnes of pellets annually. Incentive a very big project. The locals also want
$500 million it will make. In the field in explanations made in last weeks made this investment very much. It is a project
which establishment of also a pelletizing us really happy. We are waiting for the whose EIA is attained; that is it has no
plant is cited, employment of at least detailed studies of the related ministries. negative side to the environment. There
1000 people is expected. Incentive evaluations are very important is no chemical waste. It will be a plant
for us. We are hopeful of the future of requiring to completely take ore in the
Approaching to the end in the current re- incentives which will reinforce the real- nature and enriching it by processing
serve amounts of Divriği iron deposits – ization of investment and enable an eco- physically.”
belonging again to Ermaden- from which nomical business management. We carry
52% of the iron production of our coun- on the studies in Hasançelebi with our The field of Hasançelebi the operation
try is carried out, has diverted the eyes to experiences from Divriği. We have an ex- of which was not considered in the past
the field of Hasançelebi. With the calcula- perienced staff and keep it.” Orhan indi- years because of low tenor will be able to
tion of depletion of last reserves in Divriği cated that in the event of developments be evaluated as economical with the use
in the year of 2017, the must of import- are completed as planned, following the of high technology. Average tenor in the
ing the product gained from here makes nationalization period, they foresee that field is 19,49% (Fe3O4) while the amount
Hasançelebi project more valuable. the plant will enter a period of being ac- of reserve detected in the field is cal-
tualized and opening to investment will culated as almost 1 billion tones. In the
In the explanation made to AA corre- be possible in 2013. Orhan stating that plant in which annually 3 million of pel-
spondent by Sedat Orhan, General Man- they foresee the plant to start produc- let production is aimed, service life has
ager of Ermaden, said that new technol- tion in 2017 according to time schedules, been calculated as 64 years. At the end
ogies are needed to be used in this field put into words that permanent employ- of the reserve enlargement studies to be
by mentioning that the ore in Hasan- ment of 1000 people will be enabled in carried out newly, extending the service
çelebi has 3 times less grade compared the plant and during the project process, life is also possible.
to Divriği mines and thus it
does not seem to be economi-
cal with the current technology.
Orhan said; “We are waiting for
the new incentive law to be put
into practice. We believe that
the incentive law will enable
this investment to be carried
out”.
Orhan who told that techno-

logical tests related to ore in
Hasançelebi are completed and
feasibility studies of the plant
to be established according to
this are continuing, emphasized
that making the economy earn
the Hasançelebi ore is needed
to be considered as a strategic
investment. Orhan said “Private
incentives are needed to let this
investment of almost $500 mil-
01 September 2012 7
Latest Updates on Ariana Resources
and Red Rabbit Project
Very likely Turkey’s the next gold produc- been returned from the Fidan vein sys- bility for implementing the exploration
er Ariana Resources announced several tem, including: o 1.00m @ 4.53 g/t Au + programmes and $1.77 million has been
updates on their Red Rabbit Gold Project 5.3 g/t Ag (4.44 g/t Au equiv.) o 1.00m @ allocated by Eldorado in 2012 for ad-
last few months. Ariana reported bonan- 2.88 g/t Au + 43.60 g/t Ag (3.67 g/t Au vanced stage exploration programmes
za-grade drilling results from its explo- equiv.). under the joint venture agreement. This
ration drilling programme between the
Arzu South and Arzu North veins at the Ariana announced that they acquired
Kızıltepe sector of the Red Rabbit Gold four new prospective licenses totalling
Project in Western Turkey, in May. This 4,058.08 hectares via auction in line with
high grade mineralized zone identified the company’s strategy to expand its
on the extension of the Derya vein and exploration footprint across western Tur-
the sample results returned with highest key in June. Dr. Kerim Şener, Managing
grades ever recorded from the Kiziltepe Director of Ariana Resources said that:
deposit including: 12.1m @ 13.1 g/t Au + “These new licenses add to the pipeline
187.6 g/t Ag (16.5 g/t Au equiv.); includ- of exploration properties that we are de-
ing 3.2m @ 38.7 g/t Au + 511 g/t Ag (48.0 veloping in western Turkey in line with
g/t Au equiv.); and including 1m @ 65.9 our strategy to expand our portfolio of
g/t Au + 760 g/t Ag (79.7 g/t Au equiv.). exploration properties targeting the agreement covers the highly prospective
Exploration drilling has also determined delineation of multi-million ounce de- Artvin Province of north-eastern Turkey
that the Arzu North vein system extends posits. Each license was acquired in auc- where exploration campaigns are un-
to the southeast beneath cover, rather tion following a careful selection process derway at the Salinbaş and Ardala gold
than being truncated by an E-W struc- with all four licenses showing individual prospects.
ture as previously considered. Intercepts potential to host
from this drilling include: 34m @ 1.04g/t gold mineraliza-
Au equiv.; 7.6m @ 7.60g/t Au equiv.; 5.8m tion. An explora-
@ 5.71g/t Au equiv. tion programme
will be initiated in
In July, Ariana published additional drill- July 2012 in order
ing results at Kızıltepe Sector. The drilling to define targets for
programme was designed to test parts possible drill test-
of the Gamze and Fidan vein structures, ing in 2013.” about
which lie between the planned pits at these licences.
Arzu South and the Banu. The results
were encouraging: o 2.05m @ 9.57 g/t Ariana announced
Au + 146.22 g/t Ag (12.23 g/t Au equiv.) o that they will be
4.00m @ 2.59 g/t Au + 38.25 g/t Ag (3.29 the operator of the
g/t Au equiv.). Several low to moderate joint venture with
grade, shallow depth intercepts have overall responsi-
Global Yatırım Holding Plan

to Produce Feldspar at Muğla
Turkish finance, real estate, energy and transfer agreement has been signed by STS produce 130,000 tonnes feldspar per
port management company Global shareholders for the royalty of a feldspar year and export 70% of the commodity
Yatırım Holding will start to produce mine at Muğla province and 75% total to Italy and Spain at the present time for
feldspar with a joint venture with Stan- capital of the STS. The share transfer will glass and ceramic industry. The price of
dart Teknoloji Savunma Enerji ve Maden- be completed when the parties fulfill the the transaction is undeclared.
cilik Sanayi ve Ticaret AŞ (STS). A share preconditions.
8 01 September 2012
Drilling is Also Wanted to Be
Included into the Incentive
Miners, reacting positively towards sup- drilling. Kasapoğlu, giving the foreign are the main elements of mining are also
porting mining as a sector in the new companies operating in our country as needed to be included into the incentive.
incentive system, also want the drilling an example, told that they received in- Akdur reported that exploration and
activities which are the musts of the sec- centive in their own country by stating drilling activities can easily be integrated
tor to be included into the incentive. Ac- that foreigners would use some of the into the new incentive system by stating
cording to the news of the newspaper profits they gained in the countries they that positive adjustments related to the
of Bugün, sector representatives gave operate for exploration and emphasized drilling can be made in the regulations to
examples of incentive applications from the importance of exploration and thus be made about the incentive.
foreign countries while stating that an promoting drilling.
incentive in which drilling is not support-
ed would be missing. Ümit Akdur, the President of the Associa-
tion of Gold Miners said “Exploration is
İsmet Kasapoğlu, the President of the the most risky and money requiring part
Assembly of Mining Sector of Turkish of mining. There is a big demand, within
Union of Chambers and Commodity the sector, towards promoting the drill-
Exchanges, indicated that drilling is ab- ings. We informed the authorities about
solutely needed to be promoted within that if exploration is not carried out,
new incentives bringing a new excite- mining would not be available, as well.”
ment to the sector while emphasizing He also indicated that incentive towards
that drilling is an inseparable part of min- new investments is made in mining but
ing and no mine can be found without exploration and drilling activities which
SANDVIK MINING
TURKEY HAS
MOVED TO A
NEW OFFICE
Address : İvedik OSB, Arı Sanayi Sitesi 1122 Cad. 1417 Sok. No: 60
Yenimahalle - Ankara, Turkey
Phone : +90 (312) 551 49 00
Fax : +90 (312) 551 49 01
[email protected]
Learn more about Sandvik Mining and make sure you stay connected:
It´s This Way: sandvik.com/thisway
Alacer’s Çöpler Gold Mine
Update in the First Half
Alacer Gold announced its second quar- to the news release, in the previously un- gold from 107.8m in CDD357. Extensive
ter results of Çöpler gold mine produc- tested old Çöpler Village area, initial drill- gold mineralization continues to be in-
tion in 13th of August. At Çöpler, 76,621 ing has intersected thick gold mineraliza- tersected below the current sulfide pit
attributable ounces were produced tion in all holes. Mineralization remains boundary and outside the current Main
during H1 2012. Due to clay content of open to the north over a strike length of Zone resource.
the ore and heavy snow in the winter, 500m in this area of the Main Zone. Re-
crusher throughput and heap‐leach per- sults include 167.5m at 1.9g/t gold from According to the news release, work is
formance in Q1 negatively impacted. 114.2m in CDD355A and 91.7m at 1.6g/t in progress to finalize a new Çöpler re-
The cash costs/ounce is decreased 11%, gold from 59.5m in CDD364. High‐grade source estimate during Q3 2012. The
from $312 to $347 $/ounce, probably mineralization within the current sulfide new estimate will include additional
due to the repairs of crusher screen and pit boundary but outside the current re- data from drilling completed from Sep-
feeder area in Q2. In response to the in- source has been intersected in several tember 3, 2011 to June 30, 2012.
creased amount of high clay content ore holes. Results include 24.3m at 12.6g/t
encountered during Q2 2012, the mine
plan of Çöpler has been adjusted to de-
liver larger volumes of lower clay content
ore from the Manganese and Marble Pits
during H2 2012. The adjusted mine plan
requires accelerating waste removal in
the Manganese and Marble Pits and de-
ferring waste removal in Main Pit in H2
2012 which will allow access to higher
grade low clay content ores from Manga-
nese and Marble pits beginning in Sep-
tember 2012.
Alacer announced an update on explora-

tion at the northern extension to Çöpler
main zone in the end of July. According
Exploration Goes On at Cevizlidere

Tunçpınar Madencilik authorities stated relevant institutions, organizations and it is estimated to be 450 million tonnes
to our magazine that the exploration representations. Human health, environ- copper reserve with % 0,4 Cu along with
program continues at the company’s as- ment and protecting sentimental values 0,11 g/t Au. 5.000 meters drilling has
set and one of the Turkey’s most prom- are very important for us. Due to moral been accomplished at the prospect so
ising copper deposit Cevizlidere pros- responsibility, environmental and com- far and the mineralization shows signs of
pect at Ovacık - Tunceli. According to munity values will be protected along extensions along the mineralisation and
Tunçpınar’s PR Manager Hacı Karakuş’s with a successful practice of actual laws, to the deep.
statement to Hport, there are still numer- legislations, international standards for
ous works to be accomplished to clarify a sustainable mining activity.” and show
the edges of the mineralization. Follow- the company’s sensibility.
ing this work, some drilling programs
have to be done to reveal the mining Tunçpınar Madencilik is a joint-venture
site and then a feasibility study has to be of Çalık Group and Alacer Gold. Accord-
accomplished. Karakuş continued “We ing to an equal shares agreement, which
This is the corrected
are not planning to produce gold in this comprise this prospect along with 15 version of the news and it is
prospect because the gold mineraliza- projects in 2011, Çalık Group and Alacer different than the printed magazine.
tion is low grade. Our company informed Gold gave a start to Tunçpınar Madencilik
its legal liability about the subject to the at Cevizlidere prospect. At the prospect,
10 01 September 2012
Stratex Sold %51
For more information visit: www.madencilik-turkiye.com/eng/bulletin.php or e-mail to: [email protected]

of Muratdere Project to Pragma
Stratex International plc, the AIM-quot- tive agreement for the acquisition of a
ed exploration and development com- majority stake in the Muratdere project.
pany focused in Turkey, East Africa and There is little doubt that Muratdere has
West Africa, announced that Turkish the potential to be a substantial copper-
investment company Pragma Finansal gold-molybdenum deposit and we look
Danışmanlık Ticaret A.Ş. has successfully forward to further updates as they con-
completed a four month due-diligence tinue to evaluate the resource and estab-
programme on the Stratex’ Muratdere lish the most appropriate way to exploit
Free supplement of the Madencilik Türkiye Magazine, has been serving to the investors who are looking
porphyry copper-gold-molybdenum the contained metals.”
"Bulletin of Mining Concessions"

project in Turkey.
The Muratdere copper-molybdenum-
Following the successful conclusion of gold porphyry deposit has a JORC-com-
the programme, Lodos Maden Yatırım pliant inferred resource of 51 million
Sanayii ve Ticaret A.Ş., a wholly-owned tonnes grading 0.36% copper, 0.12 g/t
mining investment company of Pragma, gold, 2.40 g/t silver, 0.0125% molybde-
has signed a definitive share purchase num and 0.34 ppm rhenium.
agreement to acquire 51% of the compa-
ny holding Muratdere assets from Stra- Stratex announced updates on its Inlice
tex. Completion occurred after the pay- and Altıntepe development projects in
for finance/partners to their mining concessions or projects since October 2010.

ment of $1.7 million to Stratex in August. June. According to the press release dated
Lodos will then have the right to acquire June 13th, approval of Inlice environmen-
up to 70% by making additional pay- tal impact study has been granted and
ments, undertaking further drilling, and GBM Minerals Engineering Consultants
completing a feasibility study. Stratex Ltd will undertake rapid review of feasibil-
CEO Bob Foster said, “We are delighted ity study to finalise the conceptual design
that Pragma has successfully completed and provide updated project economics.
its due diligence and, through its whol- For the Altıntepe project, infill drilling of
ly-owned mining investment company Çamlık East Zone for detailed resource
Lodos, has now entered into a defini- modelling has been completed.
600 MW Thermal Power

Plant Construction at Tufanbeyli
Energy and Natural Resources Minister give shares to the state of the electricity
Taner Yıldız stated that the ministry initi- produced.
ated the project of a thermal power plant
at Tufanbeyli county of Adana province. TEYO Yatırım ve Dış Ticaret A.Ş. CEO Feru-
Within the program of reducing Turkey’s dun Korkmaz, disclosed that $1.2 billion
foreign energy dependency, the thermal would be invested in the project and
plant will be built which is a cheap and that it would be completed in six years.
local energy source of electricity, at the He informed the participants of the sign-
lignite project with 323 million tonnes ing ceremony that the plant is targeted
reserves. to produce $3.6 billion kWh of power,
and TEYO will pay TKİ $50 million for
The royalty agreement has been signed the lease. The Chinese partner of TEYO,
between General Directorate of Turkish Weiqu Energy Investments Co. Ltd., in-
Coal Enterprises and TEYO Yatırım ve Dış dicated that China believes Turkey is the
Ticaret AŞ with the presence of Minister country to invest in and more invest-
Yıldız, in June. Within the agreement, the ments are on the way.
investor will not pay any value but will
Turkish Invasion
of PDAC - Canada
PDAC celebrating its 80th year this year Taking part of two Turkish firms in the interest they got were the evidences that
brought together investors, analysts, exhibition area of the fair was proud for Turkish firms have a voice on international
administrators in mining, geologists, re- our country. Booths of the companies platform by their technological superior-
searchers and international government of Spektra Jeotek –drilling services and ity and competitive capacity.
authorities all over the world in 2012. producer of equipments- and Teksomak
PDAC, one of the most important activ- –producer of drilling machines were the
ity of the world in terms of mining, beat a center of interest of the visitors. Participa-
record this year with almost 1,000 partici- tion of these two precious firms to such
pant firms and visitors over 30,000. an important fair like PDAC and the great
The fair which is arranged annually by

PDAC and nearly 9.000 people from ex-
ploration and development industry are
the members of which is considered as a
very important activity by Joe Oliver, the
Minister of Natural Resources of Canada,
for the sake of preserving Canada’s num-
ber one position towards exploration in-
vestments in the world.
Teksomak Co. Ltd. which was established in 2002 as the machine group of Tekson Engineering Mining Inc. that
A great majority of exploration and op- has been carrying on its operations on engineering since 1983, has been supplying drilling machine and equ-
erating companies in Turkey are among ipments for geological survey, exploration and production companies. The firm known also for the importance
they give to R&D studies, introduced its products to visitors in PDAC 2012.
the participants of the fair. Besides almost
100 company representatives from Tur-
key, General Manager of Mining Affairs
Mehmet Hamdi Yıldırım and General
Manager of Mineral Research and Explo-
ration Mehmet Üzer also took place in the
fair activity.
A record number of participants and visi-

tors from Turkey enabled Turkish mining
sector to attract great attention in the
fair. In this sense, Turkey was among the
enhancing countries in PDAC 2012 and
increasingly arrival of international inves-
tors recently will display the actualization
of this interest. As happened this year,
participation of senior bureaucrats from
Turkish mining sector into PDAC activ-
ity in the upcoming years will contribute Spektra Jeotek established in order to serve drilling, undertaking and engineering in 1985 is one of the most
important mine drilling firms of Turkey. The company giving drilling service intensively also abroad besides its
importantly to Turkey’s international rec- activities in Turkey, introduced Spektra Drilling Canada to the sector, that they launched recently in Canada.
ognition.
ALS Minerals is the global leader
in providing analytical and assay
services to the exploration and
mining industry.
Over 10 years experience in Turkey

ALS Turkiye has been serving the mining sector since 2001. With its experienced staff,
consistent quality and dependable client service, ALS Turkiye now operates in its large,
new analytical laboratory in Izmir, which is ISO 9001:2008 accredited.
ALS Izmir lab capabilities include:
NEW! This summer the Izmir lab’s capabilities are being expanded to include
geochemical analyses by aqua-regia and 4-acid ‘near total’ digestion ICP analyses
(ME-ICP41 & ME-ICP61) in order to provide very fast TAT for your exploration projects.
Contact us to discuss cost-effective solutions:

ALS Turkey (Izmir)
Tel:
Address:
TS EN ISO 9001:2008
Email: Certificate No.: 20 100 112007030
Essay
Mining Companies in Top 1000

Exporter Enterprises of 2011
Turkey’s total exports for all commodi- 2011 2010
Name of the Enterprise 2011 Exports ($) 2010 Exports ($) Change (%)
ties reached $134.6 billion in 2011. Min- Rank Rank
ing products accounted for 2.9% of the 13 13 Şişecam Dış Ticaret A.Ş. 844.381.366,73 758.601.332,03 11,31
country’s total exports, with a decrease 15 16 Eti Mine Works General Management 826.292.756,82 629.551.355,59 31,25
of 0.3% comparing to last year but the 39 34 Çayeli Bakır İşletmeleri A.Ş. 288.455.539,54 260.584.394,48 10,70
value of the mining products export has 83 73 Eti Aluminium Inc. 153.653.529,34 153.633.921,64 0,01
reached to record high $3,876,383,000 174 135 Ekin Maden Ticaret 81.621.682,22 90.516.765,38 -9,83
with an increase of 6%. There were 33 189 217 Kaleseramik 77.146.766,28 60.005.703,96 28,57
mining companies ranked in the list Top 245 246 Magnesit AŞ 63.408.798,99 52.972.036,75 19,70
1000 Exporter Enterprises of 2011. 291 299 Kaltun Madencilik San. 55.062.467,60 45.849.350,32 20,09
299 902 Asçim Çimento Beton Nak. San. 54.007.349,32 17.584.799,35 207,13
ŞIŞECAM TOOK THE FIRST PLACE 307 578 Cihan Maden ve Metal Ürünleri San. 53.012.892,75 26.044.443,99 103,55
Şişecam Dış Ticaret AŞ, producer and 311 200 Alfa Mermer San. 51.746.604,97 64.566.239,84 -19,86
exporter of float glass, glassware, glass 330 258 Çinkom Çinko Kurşun Metal ve Mad. 49.624.744,10 51.967.538,10 -4,51
packaging and chemicals, ranked 13th in 341 412 Nuh Çimento San. 47.852.387,56 34.529.936,89 38,58
the list and took the first place among 366 373 Eti Elektrometalurji 45.366.398,82 37.157.390,74 22,09
mining product exporting companies
417 244 Dedeman Madencilik San. 41.505.327,96 53.699.706,46 -22,71
with an 11.31% increase by value. Eti
421 197 Cvk Dış Ticaret 41.118.953,40 65.401.353,92 -37,13
Mine Works General Directorate, the only
481 554 Leonardo Granit San. 36.047.820,50 27.016.221,58 33,43
authorized producer of boron in Turkey,
511 366 Göltaş Göller Bölgesi Çimento San. 34.235.837,37 37.589.585,19 -8,92
ranked one place up, took the 15th place.
535 682 Olimar Madencilik 32.994.274,48 22.749.549,68 45,03
World’s top borate producer enterprise
585 527 Demir Export 30.733.243,47 28.145.101,41 9,20
continued its leadership in the world
613 485 Koçak Madencilik San. 29.375.645,49 29.796.367,23 -1,41
borate market last year and planning to
619 349 Çimentaş İzmir Çimento Fabrikası 29.130.200,13 39.487.386,69 -26,23
increase the production this year. State
controlled Eti was the 4th enterprise in 622 655 Traçim Çimento San. 28.996.613,33 23.779.823,29 21,94
the list of “Most Profitable Enterprises of 631 517 Dimer Diyarbakır Mermer İnş. San. 28.710.936,04 28.342.566,47 1,30
2011” according to Istanbul Chamber of 730 … Akmetal Dış Tic. Madencilik San. 24.678.369,90 … …
Industry. Eti Mine Works announced this 835 901 G-M Mermer Granit San. 21.945.428,82 17.613.956,55 24,59
year’s export target as $1 billion. 849 839 Metamar Mermer Granit Madencilik 21.568.444,74 19.008.237,99 13,47
898 … Eti Soda Üretim Paz. 20.507.566,06 … …
Çayeli Bakır İşletmeleri (subsidiary of In- 912 … Eti Bakır AŞ 20.052.954,23 … …
met Mining) was the 3rd mining company 915 652 Plato Mermer Madencilik San. 20.037.052,25 23.808.774,09 -15,84
in the list with its copper export value of 936 … Alabanda Madencilik 19.645.827,38 … …
$288.5 million. Eti Aluminum, a Turkish 979 885 Kop Krom Madencilik 18.792.493,22 17.930.395,44 4,81
private mining company, has finished 995 … Türk Maadin Şti. 18.606.467,15 … …
year as the 4th biggest mining products
exporter, with about the same value as
last years $153.6 million. the world is being operated by Eti Soda, Şirketi (Turkish chromium producer).
which is a company of Turkish conglom- Some companies
5 NEW PRODUCERS IN THE LIST erate Ciner Group), Eti Bakır AŞ (Turkish
There are 5 new entries to the list this copper producer, which is a company of This year the value of mining products
year: Akmetal Dış Ticaret Madencilik Turkish conglomerate Cengiz Holding), export is expected to be $4.2 billion and
Sanayi (Turkish chromium producer), Alabanda Madencilik (Turkish industrial more mining companies expected to
Eti Soda Üretim Paz. (The second larg- minerals producer company of Çine Ak- rank in the list.
est trona (natural soda ash) ore bed in maden Madencilik Corp), Türk Maadin
Essay
Turkey’s Mining Products

Exports of the First Half of 2012
The leader of economic growth by em-
Turkey’s Mining Products Exports
ploying 750,000 people, mining industry Country Basis (First 30 Countries)
in Turkey seems to reach its goal, to grow
January - June 2011 January - June 2012 Change (%)
10% this year. In the first half of this year,
mining products exports have increased Amount (Kg) Revenue ($) Amount (Kg) Revenue ($) Kg $
5.29% comparing to the same period 1 China 2.799.947.110 668.297.113 3.436.911.621 760.447.685 23 14
last year and soared to $1.93 billion. Es- 2 United States 257.278.201 143.077.373 295.201.301 157.862.556 15 10
pecially in June, mining products export
3 India 127.749.722 45.246.705 147.264.779 73.794.699 15 63
overcame the $400 million level with the
4 Italy 1.119.995.475 66.973.413 1.162.301.332 64.032.500 4 -4
record high $411.8 million. Istanbul Min-
5 Belgium 164.674.726 54.111.147 145.915.612 57.150.291 -11 6
eral Exporters’ Association Chairman of
6 Iraq 205.114.190 47.189.822 231.063.174 54.757.510 13 16
the Board Mehmet Özer states that they
7 Russia 542.301.394 44.911.402 529.862.828 51.705.892 -2 15
expected the growth to be around 10%
8 Spain 472.002.845 32.763.184 498.909.668 48.523.217 6 48
level and the mining assets exports to
9 Saudi Arabia 121.720.244 34.173.240 167.431.086 46.176.637 38 35
reach $4.2 billion and natural stones ex-
10 Germany 273.748.812 46.913.900 155.786.218 33.901.432 -43 -28
port to $1.85 billion.
11 Austria 79.617.358 36.789.970 90.206.835 32.458.977 13 -12
NATURAL STONES TOOK FIRST 12 Israel 156.023.930 26.263.442 182.805.825 30.208.523 17 15
PLACE 13 Sweden 103.205.606 31.876.745 65.264.036 29.714.167 -37 -7
The largest share of Turkey’s mining 14 United Kingdom 82.077.971 31.673.765 59.607.611 29.546.026 -27 -7
products exports was natural stone ex- 15 France 96.550.720 29.330.667 64.364.911 27.989.347 -33 -5
ports by 44.3% and the value of exports 16 Taiwan 59.598.722 18.079.844 80.959.308 26.292.698 36 45
reached to $857.9 million. Metallic ores 17 Canada 25.884.483 22.507.961 28.470.682 25.409.472 10 13
with $645.5 million, industrial miner- 18 UAE 170.314.493 19.140.827 108.878.397 24.530.962 -36 28
als with $320.2 million, ferroalloys with 19 Netherlands 167.474.611 40.640.317 118.314.965 22.377.192 -29 -45
$67.2 million and other mining products 20 Azerbaijan - Nakhchivan 47.033.136 17.087.630 47.517.481 20.162.122 1 18
with $39.7 million are the next commod- 21 Morocco 7.199.027 1.834.593 40.015.079 19.725.371 456 975
ity values that Turkey exports. 22 Ukraine 160.664.856 22.608.714 232.470.185 18.451.085 45 -18
23 Bulgaria 92.081.091 44.618.288 66.442.358 16.323.878 -28 -63

Natural stones continued to make a sub- 24 Finland 26.705.302 26.593.131 13.520.596 13.159.049 -49 -51
stantial contribution to Turkey’s exports in 25 Australia 28.306.113 17.527.391 27.137.874 12.114.299 -4 -31
2012, increased 11.29% comparing to the
26 Egypt 94.975.822 8.799.447 117.256.419 12.108.740 23 38
same period last year. 53.9% of the natural
27 Georgia 117.349.386 7.786.848 57.663.566 10.179.495 -51 31
stones export was processed natural stones
28 Romania 112.978.150 12.304.426 79.547.642 10.096.797 -30 -18
exports and 46.1% was block exports.
29 Lebanon 26.325.186 7.729.124 28.088.878 9.964.422 7 29
30 Mexico 5.017.179 5.301.408 10.521.883 9.762.699 110 84

THE LEADING EXPORT MARKET
IS CHINA
For the first six months period, China Italy ($64 billion) and Belgium ($57 bil- crisis in Europe. The deficit related to EU
continued to be Turkey’s leading export lion). If we look at the figures closely, it member countries has been recovered
market by far, with an increase of 14% can be seen easily that there are some by India, Morocco, Mexico, Spain, Tai-
compared to the last year. The value of deficits on the export figures compared wan, Saudi Arabia and Egypt. Lead was
the commodity sales were more than to the same period last year. The coun- the leading commodity exported to Mo-
$760 billion. The next largest destina- tries that Turkey’s export value has de- rocco.
tions for Turkey mining products exports creased are all EU member countries and
are USA ($159 billion), India ($74 billion), it point out the impact of the economic
01 September 2012 15
Commodity Basis
Amount (Kg) Revenue ($) Amount (Kg) Revenue ($) Kg $
Salt 258.399.813 20.501.578 26.088.310 3.726.275 -90 -82
Iron Pyrites 0 0 22.150 3.578 100 100
Sulfur 23.208.793 4.020.322 21.536.723 4.357.565 -7 8
Grafite 92.464 91.089 366.220 475.028 296 421
Quartz, Quartzite 169.219.506 19.745.816 176.452.564 21.678.342 4 10
Kaolin & Clay with Kaolin 16.685.669 764.065 43.344.781 1.358.370 160 78
Bentonite 154.629.787 18.072.352 141.511.576 16.643.379 -8 -8
Other Clays 6.845.513 2.057.249 8.494.613 1.920.812 24 -7
Calcium Phosphate 614.422 161.855 329.193 56.230 -46 -65
Barite, Whitherite 70.752.776 8.383.764 52.080.456 7.302.210 -26 -13
Pumice 68.549.234 4.725.880 44.192.964 3.471.821 -36 -27
Grindstone & etc. 14.382.423 905.839 21.061.267 1.894.638 46 109
Dolomite 11.891.683 1.308.537 13.394.392 1.445.865 13 10
Magnesite 149.752.659 49.054.440 207.116.937 43.896.372 38 -11
Gypsum 377.796.952 31.606.223 418.795.682 34.649.356 11 10
Mica 415.125 136.369 408.045 136.041 -2 0
Natural Steatite, Talk 1.272.610 610.401 989.918 427.357 -22 -30
Natural Cryolite ve Siolite 2.012.968 370.926 316.000 61.823 -84 -83
Natural Borats & Concentrates 244.972.636 78.583.490 269.202.620 85.796.837 10 9
Feldspars 2.091.012.900 70.393.720 2.145.549.989 70.365.352 3 0
Perlite 171.808.680 9.064.716 208.861.215 11.076.073 22 22
Sepiolite 514 1.660 3.002 4.102 484 147
Celestine 3.000 1.032 10.001 3.735 233 262
Other Industrial Minerals 231.880.348 18.200.077 107.264.784 8.851.150 -54 -51
Iron Ores 87.556.530 8.238.989 211.344.054 17.572.564 141 113
Manganese Ores 45.068.078 6.912.182 41.756.580 6.142.836 -7 -11
Copper Ores 120.766.883 183.702.433 161.418.226 208.082.500 34 13
Nickel Ores 183.371.700 8.777.550 160.150.000 7.617.050 -13 -13
Cobalt Ores 499.910 574.967 25 242 -100 -100
Aluminum Ores 78.370.610 2.904.005 68.129.360 2.160.246 -13 -26
Lead Ores 26.110.540 37.916.612 40.708.189 63.156.996 56 67
Zinc Ores 152.629.919 102.484.334 165.113.104 89.682.395 8 -12
Chromium Ores 1.039.810.807 226.980.400 1.068.612.084 214.551.011 3 -5
Molybdenum Ores 21.994 525.352 0 0 -100 -100
Tungsten, Uranium, Thorium & Titanium Ores 20.006 21.590 26.000 63.960 30 196
Zirconium, Niobium, Tantalium, Vanadium Ores 600 4.384 1.588 58.081 165 1.225
Precious Metals (Gold, Silver, Platinum) 72.015 15.123 0 0 -100 -100
Antimony Ores 1.643.160 14.686.769 1.414.240 11.179.061 -14 -24
Tin Ores 44.666 137.615 880 16.278 -98 -88
Other Metallic Ores 125 240 0 0 -100 -100
Granulated Cinder 269.001.551 18.434.655 283.074.453 22.294.555 5 21
Metallic Ashes 5.903.651 3.330.681 2.672.314 2.319.082 -55 -30
Other Cinders & Ashes 4.171.440 105.140 6.740.000 137.880 62 31
Mineral Fuels 29.469.053 3.406.181 28.569.547 3.836.232 -3 13
Natural & Artificial Abrasive Dust, Rubber 2.228.404 16.272.364 2.859.090 18.696.690 28 15
Cinder Wool, Rockwool & Other Minerals Wools 9.350.994 9.277.014 11.164.656 11.439.262 19 23
Refined Mica & Products 14.930 183.543 34.134 343.755 129 87
Commodity Basis
Amount (Kg) Revenue ($) Amount (Kg) Revenue ($) Kg $
Other Rock & Mineral Products 2.266.415 19.051.456 3.117.628 16.350.547 38 -14
Ferro-chromium 34.610.348 51.893.826 41.733.000 60.400.235 21 16
Other Ferro Alloys 9.754.287 14.735.191 4.091.875 6.792.155 -58 -54
Total 6.182.266.230 1.070.695.845 6.224.299.646 1.083.666.305 1 1
Raw & Rough-hew Granite 152.268.332 1.460.934 51.727.705 638.760 -66 -56
Marble - Travertine, Raw & Rough-hew 705.843.285 110.570.130 558.686.281 96.742.616 -21 -13
Rectangular Blocks or Slabs of Granite 71.313.603 5.212.534 72.342.450 4.869.879 1 -7
Rectangular Blocks or Slabs of Marble - Travertine 1.403.721.385 218.195.731 1.833.729.196 293.519.949 31 35
Raw / Rough Natural Stones Total 2.333.800.847 335.554.701 2.516.829.209 395.836.692 8 18
Processed Marble 641.470.416 307.896.384 680.959.314 327.638.915 6 6
Processed Travertine 182.759.236 95.908.313 211.335.251 111.756.446 16 17
Processed Granite 11.058.594 7.013.667 11.460.397 7.857.890 4 12
Other Processed Rocks for Construction 24.637.536 14.172.140 14.025.196 9.134.982 -43 -36
Processed Arduvaz 634.805 1.317.522 369.036 1.080.923 -42 -18
Pavement and Flagstones 89.686.235 3.410.114 5.590.816 1.401.054 -94 -59
Tile Stones & Dusts 11.384.206 5.597.973 8.102.120 3.003.244 -29 -46
Processed Natural Stones Total 961.631.028 435.316.113 931.842.128 461.873.454 -3 6
Natural Stones Total 3.295.431.875 770.870.814 3.448.671.337 857.710.146 5 11
“BLOCK EXHIBITION: TURKISH MARBLE MEETS DESIGN” Exhibition in Milano, April 2012
Profile
Drill Rig Technology

by Teksomak
Teksomak is the machinery group of head can be swung aside for hole clean-
Tekson Drilling Company. Since 2002, ing or grouting equipment.
Teksomak’s main activity is to manufac-
ture drilling rigs for exploration drilling, Exploration drill rigs have variety of drill-
blast hole drilling, and drilling products. ing capacity and hole sizes, can be de-
From the very beginning, Teksomak has signed either with electrical engine or
directed itself as an international com- diesel engine, and have automatic hy-
pany, with competitively priced products draulic synchronization system between
and a level of service which many foreign chuck and rod holder to handle the
companies cannot provide. Teksomak’ rods. There are two types of drilling rigs
s vision relies on that “to manufacture available on our production line being
and serve high quality of drilling rig and Explorer30 and Explorer60. Explorer30 customers to provide constant working
equipments to everybody who drills no has 120 meter capacity drilling rig that conditions in difficult environments. Tek-
matter where they are”. Teksomak always is developed for the small underground somak targets continual progress and
aim to be a successful, satisfactory and tunnels and short distance surface drills. quality since our inception, Teksomak
profitable drilling rig and equipments It is light weighted and user friendly. has become a company that manufac-
manufacturing company. So far, Tekso- ture World-class Drilling Rigs.
mak achieved to be the best known with There are also two types of blast hole
reliability and finest quality of the prod- drill rigs are available on Teksomak’s
ucts in the regional market and in the product line, VDD5 and Rocker34. Rock-
worldwide. Customer satisfaction is the er34 has more capacity than VDD5 and
basic principle for our company. Tekso- also has crawler for the difficult ground CONTACTS
mak is providing machines and equip- conditions.
ment for geological exploration compa- Duygu Özen
International Sales and Marketing Manager
nies and mining companies. Teksomak, known as reliability and fin-
SFS Teksomak Makine İmalat Paz. ve Tur. İşl. Diş Tic.
est quality of the products in the mar- Ltd. Şti.
Our manufacture spectrum is Pathfind- ket, is providing drill rigs and equipment Aso 1. Org. San. Bölgesi Türkmenistan Caddesi
er10 Multipurpose Drill Rig, Frontier200 for geological exploration both under- No: 13 Sincan / Ankara - Turkey
Reverse Circulation, Explorer60 Full Hy- ground and surface. Teksomak R&D Phone: +90 (312) 394 47 24 - 25
E-mail: [email protected]
draulic Drill Rig, Explorer30 Full Hydrau- department works for developing ma-
lic Drill Rig, Rocker34 Wagon Drilling and chines and drilling technology continu-
VDD5 Wagon Drilling. ously and strong after sales services help
Frontier200 is for reverse circulation drill

rig and can be mounted on crawler for
hard ground conditions. Rod rack is fixed
on Frontier200 Reverse Circulation Drill
Rig. Cyclone can me mounted on Fron-
tier200 Reverse Circulation Drill Rig or
separated from it on the trailer.
Pathfinder10 is multipurpose drill rig

for coring, drilling, blast hole drilling,
water well drilling and reverse circula-
tion drilling. It can be built on different
frames such as regular skid frame, wheel,
hydraulic crawler and truck. The rotation
Profile
Dassault Systèmes
Acquires Gemcom Software
It was announced on 12th July that (This) announcement is a significant step
Dessault Systèmes, the 3DEXPERIENCE towards fulfilling our purpose of provid-
Company, world leader in 3D design, ing 3D experiences for imagining sus-
3D Digital Mock Up and Production Life- tainable innovations to harmonise prod-
cycle Management (PLM) solutions, has ucts, nature and life.”
acquired Gemcom for approximately
US$360 million. As part of the acquisi- “This acquisition will clearly benefit our
tion all of Gemcom’s products and em- clients, bringing global support and en-
safety concerns. One of the ways the oil
ployees remain in place, and Gemcom terprise collaboration. Advanced tech-
and gas industry moved to counter these
will continue to serve the mining in- nologies in 3D modelling and simulation
same issues in the 1990’s was through
dustry. The announcement heralds the will not only enable engineers and ge-
the use of technology. If we look at the
beginning of exciting opportunities and ologists to model and visualise resources
Dassault Systèmes 3DEXPERIENCE Plat-
technological developments which will but also improve sustainable mine pro-
form we see a lot of technology that is
bring a new era of possibilities to the ductivity. We believe that with Dassault
used in other industries that could be re-
mining industry as a whole. Systèmes’ support we will be able to ad-
purposed into the mining space to help
dress global issues for our customers as
solve some of these issues. There are nu-
Dassault Systèmes provides business a real partner. None of our competitors
merous parallels between what Dassault
and people with virtual universes to can match that in this industry.” said Rick
Systems has done in other industries
imagine sustainable innovations, with Moignard, President and CEO of Gem-
and what we could adapt to mining. This
solutions to transform the way products com. Rick will become the CEO of the
is a great evolutionary step in the life of
are designed, produced and supported. GEOVIA brand.
Gemcom.” Says Rick.
The Company’s collaborative solutions
foster social innovation, expanding pos- The company will be working to bring
sibilities for the virtual world to improve the innovation of their 3DEXPERIENCE
the real world. The group brings value to Platform to life for the mining industry.
over 150,000 customers of all sizes, in all Gemcom believes that integrating the
industries around the globe. 3DEXPERIENCE Platform technology will
provide the basis of the mining industry
With the acquisition of Gemcom, Das- of the future.
sault Systemes’ objective is to ‘model
and simulate our planet, improving pre- “Our first priority is mining. We will never
“We wanted to find a company that
dictability, efficiency, safety and sustain- leave the mining space and our team
would take time to understand our cus-
ability within the natural resources in- continues to be focused on mining, and
tomers and add value to the Gemcom
dustry and beyond’. In order to support on our clients and developing technol-
offering. Dassault Systems brings indus-
this goal, the Company will create a new ogy for them.” Rick commented.
try technology that can be adapted to
brand, GEOVIA, which will see Gemcom
mining and not only create a sustainable
transition to this new name, GEOVIA will “The mining industry is facing some
competitive advantage, but is also so
compliment Dassault Systemes’ exisit- major issues
advanced that it will change the way the
ing brands, CATIA, SolidWorks, ENOVIA, around skills
industry does business.”
SIMULIA, DELMIA, NETVIBES, 3DSWYM, shortage,
3DVIA and EXALEAD. deeper more
remote min-
In a press release issued by Dassault ing projects, CONTACTS
Systemes, the Company’s President and environmen-
Gemcom Software Europe Ltd.
CEO Bernard Charlès said, “Raw mate- tal regula- E-mail: [email protected]
rial provisioning and long term resource tions, and Website: www.gemcomsoftware.com
availability is a major concern for society. health and
Profile
SGS Ankara
Geochemical Laboratory
For its quality and versatility of services determination of gold and silver which is the analysis of metals in soils and weath-
provided to clients SGS is a world wide suitable for high grade golden and silver ered materials. Target elements are ex-
leading analytical service company. One ore, concentrate and bullion at the accu- tracted using weak solutions of organic
of SGS staples is an analytical service racy and precision of umpire assay. and inorganic compounds rather than
for mining industry. In this sector SGS conventional aggressive acid or cya-
employs top notch specialists and it has SGS Ankara also will offer to clients dif- nidebased digests. These elements have
state of the art techniques at it disposal. ferent cyanide leach tests. Carrying out been gradually drifting through milen-
SGS mining analytical service fulfills gold assay with cyanide leach at the nias from ore bodies deep in the ground
all demands of the industry, covering same facility will provide clients with to the surface. Low concentrations of the
analysis applied in exploration, envi- highly reliable and reconciled data on exytracted elements can be determined
ronmental, grade control, metallurgical amiable gold in tested samples. In addi- by ICP spectroscopy. Plotted on the ex-
and commercial settlement segments of tion the involvement of SGS metallurgy ploration area map analytical data will
mining industry. gurus from Cornwall UK SGS metallurgy show true anomalies and exploration
centre will assure that the optimal pro- team will be able to pick drilling targets
For a long time SGS presence in Turkish cess parameters will be recommended unerringly. The information obtained by
mining industry was confined to sam- to provide the best gold recovery. MMI will guaranty that drilling targets
pling and control assay of ores and con- are not false anomalies or nugget effect
centrates. Now SGS Turkey is providing SGS Ankara Geochem Lab is capable of anomalies, saving therefore exploration
mining industry of east Mediterranean providing clients with a broad spectrum companies milions of dollars.
and Caucasus with complete spectrum of geochemical analysis for exploration.
of analytical service. First of all it is multi element analysis. The SGS Ankara will cover also environmental
laboratory can deal with any type of sam- segment of Turkish mining industry. Com-
SGS Geochemical Lab in Ankara is one of ple collected by client. It can be water, bination of Furnace/IR Cell LECO instru-
largest and best equipped labs of that pro- soil, lake or stream sediment, rock, drill ment with classical titration allows the lab-
file in the region. SGS Geochem Lab. is a full core. By choosing right sample decom- oratory to perform acid base account tests
scale laboratory conveniently located in a position method and instrumental finish which are nowadays a consisting part of
new development of Sincan industrial zone. lab chemists will assure that elements of every mining operation in the world.
interest won’t be lost and that client will
With the best expertise this lab will pro- get the most accurate result at economi- Continuing traditional SGS Turkey line of
vide clients with noble metals (gold, cally reasonable price. SGS Ankara is able business SGS Ankara Geochem Lab will
silver and PGM) analysis known every- to do almost total digestion with 4 acids provide clients with control/umpire as-
where as assay. This method has been in as well as two types of fusion, namely say for Cr, Mn, Fe ores as well as Cu, Zn
use by human civilization for centuries lithium metaborate and potassium per- and Pb concentrates.
but nowadays it is highly sensitive and oxide ones. SGS Ankara spectroscopy
accurate. The whole process is automat- lab is equipped with state of the art PE The combination of modern analytical
ed which will allow SGS to provide clients Optima 7300 ICP instruments and with methods, state of the art instruments,
with sensitivity down to 1 ppb (10-7%) Varian AA240 FS spectrometers. These in- educated and thoroughly trained profes-
and precision lower than 5%. The brand struments are fast which all in all will cut sional staff assures that SGS commitment
new state of the art computer operated down turn around time to a few days. to provide clients with best service at com-
sample fluxing system that is installed in petitive price will come true at ISO 9001 ac-
the lab will guaranty almost ideal unifor- Another unique method available from credited SGS geochemical lab in Ankara.
mity of sample presetting for fusion, as- SGS Ankara Geochem is MMI (Mobile
suring its quality. Atomic adsorption and Metal Ion). SGS is the owner and sole
ICP spectrometers will provide assayers provider of MMI® Technology and it has CONTACTS
with linear range from the lowest con- over 15 years of experience with it. MMI®
Evgueni Terentiev
centration up to ore grade. On the high- Technology is an innovative analytical
Ankara Laboratory Manager
er end we will be able to do gravimetric process that uses a unique approach to Website: www.sgs.com
Profile
Pozitif Drilling
Industry and Trade Ltd
Pozitif Drilling Industry and Trade Ltd Health, safety, security and the environmental responsibility of our emplo-
was established by three driller brothers ment (HSSE) rank high in our priorities. yees from the top unit to the lowest
in 2007 to offer a new alternative in glob- We believe that integrating these quality by training all of them about the envi-
al drilling industry. In a short period of principles into the culture and activities ronmental aspects.
time, the company has recorded a con- of our organization will help us to be the •• Continuous improvement in occupa-
sistent growth and established a strong prominent of the industry and therefore tional health and safety, preventing
place in worldwide drilling services and will create confidence among our clients. from possible occupational accidents
innovative hard rock drilling technolo- by following technological develop-
gies for the mining industry. HEALTH, SAFETY AND ments,
ENVIRONMENTAL POLICY •• Continually improving our HES stan-
Having its headquarters in Ankara -the As Pozitif Drilling, we respect the world dards, culture and performance, and
capital city of Turkey- Pozitif Drilling we live in. We care our earth & people by will transparently report our perfor-
has the ability to operate all around the establishing and integrating principles mance goals and metrics.
world with its specialized equipment into all aspects of our business, from the
and skilled personnel. The company pro- manufacturing of our tools through the OUR VISION
vides drilling services like surface and drilling services we offer. Our vision is to establish an incident-free
underground coring, reverse circulation workplace and to place environmentally
and multi-purpose. We are committed to; and socially sound, qualified and reliable
•• Protecting the environment and give drilling services to the global market by
Pozitif Drilling is proud of its health full attention to environment. integrating technology, talent and pro-
and safety applications and procedures •• Providing and maintaining a safe and fessionalism.
which are in place to prevent and control healthy working environment for all
the physical injuries and environmental our employees and visitors by elimi-
damages. Main aim is to gain custom- nating the hazard and risk concepts
ers’ trust and satisfaction through Pozi- in the working environment,
tif’s proven reputation for performance, •• Complying with the Constitution of
quality, innovation and safety. the Republic of Turkey, international
conventions which are approved and
Pozitif Drilling’s fleet has expanded applicable by Turkish Grand National
through additions of new equipment Assembly related to laws, regulations,
and investments over the years. Today rules and notices and other obligati-
it keeps all necessary equipments both ons,
in its warehouse and in the stocks of its •• Prevent environmental pollution
drilling sites to avoid time loss in case of and use totally environment-friendly
breakdowns. Pozitif’s know how, experi- sources of raw materials during all
ence and practice on drilling techniques operations by following scientific and
and utilization of drilling additives in dif- technologic developments of our in-
ficult ground conditions, distinguish the dustry.
company among its competitors. •• Designing and manufacturing pro-
ducts that are safe, energy efficient CONTACTS
OUR POLICY and minimize impact to the environ-
Our in-depth knowledge and experience ment. Pozitif Sondaj
in difficult, harsh, and remote environ- •• Keeping the environmental impacts A. Öveçler 1332 Sk. No:18/7 Dikmen
ments enable us to meet the demands of under control and reducing damages Çankaya / Ankara - Turkey
Phone: +90 312 472 14 90
our clients perfectly. We know that each formed or can be formed from the be-
project is unique and has to be undertak- ginning to the end of the projects, Website: www.pozitifsondaj.com.tr
en carefully in order to deliver on time. •• Increasing consciousness of environ-
Profile
CWP Coal Washing Plants Machinery

CWP Coal Washing Plants Machinery In- has recently been awarded a new con- TRI-GFC (Three Product Gravity Feed Cy-
dustry & Trade Ltd. Co. was established tract for turnkey commissioning of a clone) coal washing plant in the domes-
in 1990 and located in Izmir, Turkey. The 150 t/h capacity project that includes tic market. The company is also about to
company’s main business is the design,
engineering and manufacture of heavy
media coal washing plants, component
machinery, as well as machinery for
beneficiation and classification of sand,
gold and similar granular material. CWP
has been active in the coal processes
for more than 20 years and has commis-
sioned more than 35 plants which are
still operative in Turkey, Georgia, Serbia,
Russia and Middle East. It has agencies in
South Africa, India, Indonesia and Mon-
golia and available to serve worldwide.
Having commissioned a 450 TPH Heavy

Media GFC (Gravity Feed Cyclone) Coal
Washing Plant in Turkey last year, CWP
finalize the contract pace for 2 new proj- Type Vibrating Screen” are manufac-
ects with similiar capacity and systems tured with their new vibrating mecha-
in the Caucasus and the Middle East and nism which ensures a more accurate
several projects which were quoted pre- and steady vibration. They are used in
viously are confirmed to be contracted. various mining sectors for screening,
rinsing and dewatering of the mines
Day by day, the firm has enlarged its and minerals such as coal, gold, iron,
product variety with the continuously zinc, lead, chromium, sand and etc. with
developing in-house R&D and design high efficiency. “New Type Coal Centri-
department. CWP is able to manufac- fuges” introduce more efficient vibra-
ture most of the components of a plant tion, dewatering with less energy con-
which is a cost effective feature of the sumption and longer service life with
company in favor of its customers. At better lubrication. More information for
the end of successfully R&D projects the mentioned equipments and more CONTACTS
CWP has introduced its “New System can be found at company website.
Horizontal Vibrating Screen”, “Circular CWP Coal Washing Plants
Motion Banana Type Vibrating Screen”, CWP’s experience on coal processes, İ. A. O. S. B. Mustafa Kemal Atatürk Bulvarı No: 19
“New Type Coal Centrifuges”. CWP’s state of the art technology and quality PK. 35620 Çiğili - İzmir / Turkey
“New System Horizontal Vibrating are combined to serve the best avail-
Website: www.cwp.com.tr
Screens” and “Circular Motion Banana able solution for its customers.
Profile
Aldridge Minerals’ Yenipazar Project -

Probably Will Be the Third Biggest Metal Mining Project of Turkey
As the Turkey’s financial development the potential and production is grow- ment in the fall of 2011, our focus has
goes on, Turkey’s mining industry also ing every year. Exploration companies been to advance our Yenipazar project
growing at impressive rates in all com- that worked in Turkey for years desires to in Turkey given the significant size of its
modities. Turkey being Europe’s leading profit by producing this valuable mineral mineral deposit, access to skilled labour
gold producer, ranking 17th in the world at the world standards. Aldridge Miner- and modern infrastructure, and support
in terms of nominal GDP and 2nd fastest als who is totally focused on its Yenipa- from local stakeholders.” and continued
growing GDP behind China, Turkish Gov- zar polymetallic VMS deposit (Au, Ag, Cu, “The rejection of our renewal application
ernment’s focus on mining and produc- Pb, Zn), take firm steps forward to be the supports current management’s position
tion today is more than ever before. third biggest gold project in Turkey after that PNG is too volatile and that our ef-
Kışladağ Gold Mine owned by Tüprag forts, as evidenced by recent progress,
Precious metals and gold production is Metal Madencilik (subsidiary of Eldo- will deliver greater rewards if concen-
considerably new in Turkey, however rado Gold Corp.) and Çöpler Gold Mine trated in Turkey.”.
owned by Anagold Madencilik (subsid-
iary of Alacer Gold Corp.). According to YENIPAZAR PROJECT AT A
the press release dated July 6, 2012, Ma- GLANCE
rio Caron, President and CEO of Aldridge If we take a closer look to the Yenipazar
Minerals stated that: “Since Aldridge be- project, it is clear to see why the com-
gan to implement a change in manage- pany consumes all its energy to the proj-
ect. The Yenipazar Project has a currently
determined strike length of at least 1,700
meters averaging 200 meters in width
and approximately 20 meters in thick-
ness at depths between 30 and 190 me-
ters. Much of the ore body is sitting at
a depth of approximately 50 to 120 me-
ters. The project is favourably located at
the geographic center of Turkey, approx-
imately 220 kilometers east-southeast of
Ankara, the capital city which makes it
easily accessible via public roads and has
good access to rail transportation and
electrical power supply.
According to the last press release (dat-

ed June 13, 2012) about the update of
NI43-101 mineral resource estimation
for Yenipazar, the project reached 2,62M
gold equivalent ounces at 3.05 g/t.
Based on all geological and drilling work es increased 432% to 1,159,000 tonnes becoming a near-term producer.
completed to the end of 2011 (54,774 from 218,000 tonnes. Aldridge President
meters), and includes 7,202 meters of and CEO Mario Caron emphasizes that Compared to the December 2010 miner-
diamond drilling, indicated resources in- with the progress that has been made, al resource estimate, the metal grades of
creased 9.9% to 26,684,000 tonnes from it is clear that Yenipazar is a world-class the resource have remained fairly stable
24,284,000 tonnes and inferred resourc- VMS deposit with excellent potential for while the total size of the resource has
increased. The total Indicated resource
Category Tonnes Gold g/t Silver g/t Copper % Lead % Zinc % Au Eq g/t has grown by almost 10% while recent
Indicated 26,684,000 1.04 31.3 0.30 1.04 1.40 3.05 geotechnical drilling that encountered
Inferred 1,159,000 0.48 27.7 0.22 1.00 1.95 2.51 mineralization has added significantly to
the Inferred resource base. The updated
mineral resource is summarized in the
Contained Metal
tables below:
Category Gold M OZ Silver M OZ Copper M LBS Lead M LBS Zinc M LBS Au Eq M OZ
Indicated 0.89 26.85 176.5 611.8 823.6 2.62 The Company published a Prelimi-
Inferred 0.02 1.03 5.6 25.6 49.8 0.09 nary Economic Assessment (PEA) in
December 2010 that generated robust Metal Total Recoveries Gold Gravity Concentrate Copper Concentrate Lead Concentrate Zinc Concentrate
economic returns. The metallurgy identi-
Gold 92.0% 65.0% 20.0% 5.0% 2.0%
fied at the time was preliminary in nature
Silver 90.0% 10.0% 10.0% 65.0% 5.0%
and necessitated significantly more test
Copper 75.0% 75.0%
work for better optimization.
Lead 75.0% 75.0%
Zinc 77.0% 77.0%

The PEA contemplated the production
of a copper concentrate, a lead concen-
trate, and a zinc concentrate, with only gold recoveries reported in the PEA. near future. The matrix of metal recover-
about one third of the gold reporting to ies that formed the basis for the resource
the copper concentrate and the majority SGS UK, which is currently conducting update, which incorporates all testing
of the silver reporting to the lead con- all metallurgical test work for Aldridge, completed to date, is set out in the table
centrate. In December 2011, Aldridge has expanded upon the work by G&T. below.
announced additional metallurgical test- The process contemplates a separate
ing completed by G&T Metallurgical Ser- gold circuit followed by sequential flota- CURRENT TARGETS FOR
vices, which indicated that production of tion of copper, lead, and zinc. Aldridge YENIPAZAR
a gold gravity concentrate prior to base expects the flowsheet to be finalized The main focus of Aldridge Minerals for
metal flotation may more than double for the purposes of the Feasibility Study the short term is to finish the diamond
drill twinning program which will be
included in a subsequent resource es-
timate that will form the basis for the
feasibility study according to the Coun-
try Manager Serdar Akça and Turkish
Subsidiary Exploration Manager Ahmet
Şentürk. The purpose of the program is
to twin up to 99 existing reverse circula-
tion (“RC”) drill holes with the objective
of increasing in particular the precious
metal grades as found in previous dia-
mond-RC duplicate pairs. The RC holes
will be subsequently removed from the
resource database so that only the more
Yenipazar Location Map - Turkey is Emerging as a Major Mining Area
in developing the Yenipazar project in a
timely fashion.” at March 2012.
According to an agreement in July 2006,

Aldridge is allowed to earn 100% interest
of the project. The remaining deliverable
is the Definitive Feasibility Study by De-
cember 2012. Alacer Gold retains 6% net
proceeds interest in production (revenue
minus operational cost) totaling up to
165 million USD and increasing to 10%
thereafter.
Aldridge Minerals will be looking for new

investment options after the feasibility
study. Economic crises in Europe, cau-
tious trades of China and instability of US
economy did not affected Turkey at all
accurate diamond data remain for the agreement, ANT Holding purchased 16 as it is expected to be. The Government
duplicated holes. The 99 scheduled holes million common shares of Aldridge at a supports mining and the new incentive
address about 81% of the RC-drilled gold price of 0.70 USD per share for gross pro- system supports mining even more. In
resource, and about 75% of the Ag-Cu- ceeds of 11.2 million USD. Upon closing this positive atmosphere, after the feasi-
Pb-Zn resource. of the investment, ANT holds approxi- bility study which is planned to be com-
mately 30% of Aldridge’s shares. This pleted in December 2012, the executives
The Yenipazar feasibility study, being strategic partnership will help Aldridge are very positive to bear the project to
overseen by Jacobs Minerals Canada Inc., to build strong relationships with lo- the next step.
also continues to progress. Project costs cal banking and government contacts.
are within the budgets established for Aldridge President & CEO Mario Caron
the team of consultants including P&E expressed his appreciation with these CONTACTS
Mining who is preparing the mine plan words: “I am delighted that 100% of the
and resource update, SGS (UK) who is votes cast by shareholders were in fa- Aldridge Minerals Inc.
undertaking metallurgical studies, SRK vour of the Private Placement with ANT. Karyağdı Sok. No: 13/4 Y. Ayrancı, 06690
Ankara/Turkey
Turkey which is working on the Environ- The Private Placement is the first step in
Phone: +90 (312) 468 71 23
mental and Social Impact Assessment forming a strong relationship with a stra- Web: www.aldridge.com
(ESIA) and Golder Associates which is tegic Turkish partner that will assist us
responsible for geotechnical studies. SRK
Turkey is also working on hydrological
aspects of the project from both geo-
technical and water supply aspects. The
logistics study on the transportation of
concentrates, which included on-site in-
spections in June of various ports, roads
and rail options is progressing as sched-
uled, according to the press release dat-
ed July 20, 2012.
PARTNERSHIPS AND
AGREEMENTS
Aldridge Minerals announced at the end
of the March that the Company’s share-
holders have voted overwhelmingly in
favour of approving the investment by
ANT Holding Anonim Şti which is a pri-
vate company with interests in media,
engineering and construction. With the
Aldridge Minerals Country Manager Serdar Akça.
Article
“Turkifying” a Foreign Mining

Company in Turkey through
IPO in Turkish Markets
Whether one is a fan or not of the terms ulation rather than specific economic businesses (i.e. textiles) and the concen-
“emerging market” or “developing mar- groupings as their partner. tration of others (banking) meant that
ket” there is no denying that both terms needed to exit losers and focus down on
fairly describe the current state of the One interesting aspect of the Turkish the growth sectors.
Turkish equities market (I.e. the Istanbul economy that is worth noting is the on-
Stock Exchange). However, the Turkish going dominance of the conglomerate We have noticed a trend now in Turkey
market is nothing new to international model. In Latin America this mode of do- that the missing piece from many con-
portfolio investors, having attracted for- ing things amongst groups at the top of glomerates “set” is mining and thus a
eign investors for several decades now the economic pyramid has “gone the way rush has been engendered into this now
and has also developed that elusive factor of the dodo” over the last twenty years as trendy activity. Mining however is an ac-
which is a domestic retail investor base. specialization and concentration has set tivity is not conducive to being bunched
in. Yet in Turkey the philosophy of “col- with diverse other economic sectors.
As far as mining goes the market has lecting the set” (being in hotels, energy, A certain logic can be made for vertical
only one listed mining stock so far (a textiles, construction, banking etc) still integration with smelting and on-pro-
gold miner) but the potential exists, I holds its fascination. This practice prob- cessing in base metals and those miner-
believe, to see 20 or more mining com- ably has its origins in the desire to be als that feed the steel complex (i.e. iron
panies listed on the Istanbul over the flexible and ride the emerging markets ore, nickel, zinc, manganese and chrome.
next five years. The first wave of these wave starting with textiles and construc- Gold and silver however have no obvi-
new listings will come from foreign listed tion (classic low wage economy activi- ous synergistic effects with other parts
miners (those on the AIM in London, the ties) and then morphing over time into of a diversified economic grouping, even
Toronto Stock Exchange or the Austra- opportunities in cell-phones and energy if it contains a bank. Beyond this con-
lian Stock Exchange) while the second which require greater degrees of tech- sideration, the mining business needs
wave should come from locally-owned nology and capital. The perennial feature a special mindset. Short of massive de-
groups wishing to follow in the footsteps in many conglomerates is the construc- posits like iron ore and manganese that
of the foreign miners. tion division which can interact with all make themselves evident at surface, the
the other parts and moreover be a ben- first task of the mining company is to find
The attractions for foreigners are many eficiary of the largesse of governments the deposit and prove its size and grade,
and obvious. The first advantage that when things are trending towards infra- therefore its mineability and economic
would accrue is the access to the sub- structure building. Latin American con- worth. To mining “newbies”, the find-
stantial amounts of capital available in glomerates though found in the 1990s ing might appear to be the easiest part.
Turkey. The major mining equities mar- that finite funds and the eclipse of old However with capex to build a mine and
kets are overcrowded and it is very hard
for mining stocks to attract attention in
the very big crowd (1,400 mining stocks
alone are listed on the TSX and TSX-V).
In Canada in particular the attraction of
any miner not operating in the Western
Hemisphere is limited (with the excep-
tion of West Africa). The Canadian inves-
tors just do not “get” MENA and ex-CIS
markets, let alone Asian mining projects.
The second important factor is the po-
tential to increase the Turkish ownership
in projects without necessarily taking on
a local partner. Thus miners can “Turkify”
their projects by having the Turkish pop-
mill often running into the hundreds of gives an idea of how traditional mining as Brazil has in Vale, for example, rather
millions of dollars, getting it wrong by markets value mining stocks at different than having mining as some barely un-
starting to build without adequately phases along the road to production. derstood orphan activity in the back-
proving the deposit can end up way The highest values occur at discovery ground of a sprawling conglomerate.
more expensive than doing the millions and at production initiation.
of dollars of somewhat thankless and
tedious drilling and testing which is the The listing of a flock of junior miners at
forte of Canadian and Australian mining various phases of the mining lifecycle
companies. This embedded work has its will involve an educational challenge
value despite not having much more to for the mining company executives and CONTACTS
show after a few years other than a pile investment bankers/brokers as they get
of samples and drillcore and voluminous their investors up to speed on the alien- Christopher Ecclestone
geological reports from consultants. All sounding metrics that miners are valued CEO
Mediterranean Resources Ltd.
this hard graft is alien to conglomerate with compared to the standard measures
Suite 310 - 885 Dunsmuir St. Vancouver, BC Canada
entrepreneurs for whom the past ex- used for industrial or financial enterpris-
Phone: + (604) 669-3397
perience has been that everything they es. Beyond that the creation of mining-
touch “turns to gold”. This does not hap- only companies in the capital markets
Website: www.medresources.ca
pen in mining! would be the ideal way in which Turkey
Turkey Office T: +90 (312) 426 30 64
The “lifecycle chart” that we show here could create national “champions” such
Article
Lithotheque System of Ore Deposit

Records in Mineral Exploration:
Turkey and the World
Siegfried Muessig, one of the distin-
guished mine discoverers, characterized
the principal goal of mineral exploration
as “finding a look-alike orebody” (SEG
Newsletter No.87, 2011, p.10), by using
the time tested method of targeting
productive ore types like porphyry cop-
pers using analogy. Regardless of the
plethora of exploration models, four mil-
lion pieces of accumulated references,
and a number of talk presentations and
courses, an exploration geologist needs
to imagine how the expected ore de-
posit sought would actually look in the
field and in drill core and what are the
Figure 1. Variety of Lithotheque plates (the 7 x 11 inches plate size is constant). LEFT: standard layout of 20 solid
proximity field indicators of possible samples, Colquijirca Pb-Zn-Ag. CENTER: powdery or friable samples held in plastic “jewel boxes”. RIGHT: oversize
ore presence. Target visualization comes drill core slabs.
as a result of long field or mine experi-
ence that included a number of ore types
and geological situations, supporting
the H.H. Read’s thesis that “the best ge-
ologist is he, or she, who has seen most cost but are subject to three major limi- application of material selectivity, min-
rocks”. Cumulative experience increases tations: 1) Amount (length) of core tends iaturization and globalization, while still
with age and the number of ore depos- to be overwhelming and much of it is preserving the real rock and ore nature
its examined, although the opportunity monotonous and repetitive. This results of the information resource.
for frequent mine visits around the world in users’ fatigue, so features of explora-
is available to lucky few only, most of tion significance are often overlooked. ENTERS LITHOTHEQUE, THE
whom are not involved in mine finding This problem is slightly alleviated by “ROCK LIBRARY”
at all. logs of photographic and physical char- LITHOTHEQUE is a collection (library)
acteristics (e.g. spectra, magnetism, of sets of miniaturized (about 4 x 5 cm
With little opportunity for extensive radioactivity) that are now gradually re- each) ore, alterations, and host rock
geological roaming, especially for the leased by several advanced core libraries. samples from a deposit, permanently
juniors, the second best place to visu- They help the geologist to focus on the attached (cemented) to page-size alu-
alise and actually touch the “look alike” most prospective core intervals; 2) The minium plate, in uniform and fixed
geological materials are rock and ore col- drill core inventory is representative of order. Each plate takes up to 20 min-
lections and repositories. Those in most the region (state, country) but material iature samples (or lesser number of
general museums are of limited help as from overseas deposits, much needed larger samples or core slabs) and one
they emphasize the exceptionality and to provide the “look alike” visual experi- (or more) plates provide visual and non-
curiosity aspects. Private mine museums, ence for comparison, is not available; 3) destructively (physically) testable repre-
common in the past but now a rarity, of- The size, weight and constant growth sentation of ore deposit geology (Figure
ten provided a very realistic representa- of the amount of material creates a 1). Despite the small size, we have found
tion of mine geology and they were used never-ending demand for space and that one miniaturized sample provides
for training. Nowadays the best source of personnel: a financial and logistic drain some 80% of petrographic information
first-hand geological imagery, that often to most organizations. There is a way to normally available form a convention-
assisted local ore discovery, are drill core alleviate these problems, at least for the al-size hand sample, at a fraction of
libraries. They are usually run by govern- purpose of introductory familiarization weight and space required. Best of all,
ments who can afford the substantial of geologists with the “look alikes” with Lithotheque provides a comprehensive
coverage that treats an orebody as an well as international deposits contain a
interrelated ore-forming system with mix of geological records that could be
the numerous transitions and modifi- compared, contrasted and evaluated in
cations (e.g. oxidation, alterations, de- terms of the “look alike” characteristics
formation). The geological information (Figure 3). This empirical information is
conveyed by a Lithotheque of great practical value for exploration
is permanent and free of the constant planning and mineral prediction.
change of genetic concepts and in-
terpretations. Lithotheque plates are DATA METALLOGENICA (DM)
held library-style, in racks where they AND DATA METALLOGENICA Figure 3. Lithotheque representation of ore deposits
and occurrences in the Gawler Craton of South
are instantly accessible and available ORIGINAL (DMO) EXPERT Australia, the “home” of the supergiant Olympic Dam
for browsing. Each plate comes with a SYSTEMS Cu,U,Au,Ag,REE IOCG deposit. This is an area under
graphic explanation sheet (see picture Lithotheque was born in the Queensland intense exploration where a number of century-old
prospects can provide clues to ore presence.
below). The space economy (footprint) (Australia) field in 1970, as a means of
is amazing: a wall rack 4.5 m long, 2 factual representation of hundreds of
m high and 30 cm deep holds 1000 geological and mineral sites visited and
tion (uniform explanation sheets, folders

with field images, original notes, maps,
reprints, electronic search files) as well
as a parallel collection (Macrotheque)
of hand samples with thin and polished
sections, organized by depositional en-
vironments and lithologic associations
(“Geosites”; Laznicka, 2001). This resulted
in a versatile expert system of highly re-
alistic visual global ore deposit informa-
tion we called Data Metallogenica (DM).
In 1999 DM relocated to Australia and
was installed in a purpose-equipped
showroom at the Australian Mineral
Foundation (AMF) in Adelaide. Upon
AMF termination in 2002 DM has been
taken over by Amira International of Mel-
Figure 2. Lithotheque/Data Metallogenica at the University of Manitoba, 1998. The sample plates representing
bourne, who have operated since 2002
ore deposits and geology in general are held, book-like, in custom-made racks. The accessibility and space sponsors-, then subscription-funded DM
economy are outstanding; a 3.6 m long, 2 m high rack holds 800 Lithotheque plates with up to 20 miniaturized on-line (www.datametallogenica.com).
samples each (=16,000 samples).
This website contains informative free
preview, and a number of universities en-
joy DM on-line access through subscrip-
tions donated by corporate sponsors.
Lithotheque plates, that is up to 20,000 evaluated during large area regional re- DMO is a private extension maintained
individual geological samples! (Figure connaissance. It subsequently grew in by this author (www.totalmetallogeny.
2). The collection is clean and attrac- size and complexity when this author com/datamet).
tive so that it could be at home even was a professor at the University of Mani-
in corporate boardrooms. Extensive toba in Canada. Numerous components At present, DM and DMO jointly com-
Lithotheque collections from local as were added to the Lithotheque collec- prise over 4200 Lithotheque sets
of Sn,W,Co,Mn,etc.) and of the recently
popular commodities like lithium, rare
earths, tantalum and other metals that
most geologists have never seen. Here,
the “look alike” experience is at its best.
Turkey is represented in DM and DMO
by 12 Lithotheque sets (Table 1) that in-
clude the frequently quoted, but poorly
understood Murgul-copper, and the
ore giants Kişladağ-gold (Figure 5) and
Emet-borates. Here, Turkey contributes
the “look alike” standards for the rest of
the world to explore for. Together with
the existing Lithotheque sets from Italy,
Austria, Slovakia, Hungary, Romania,
Bulgaria, former Yugoslavia, Greece,
Figure 4. Data Metallogenica (2004 status), locations
of Lithotheque sets. The geographically uneven
coverage is the consequence of insufficient funding
and politico-logistic difficulties in accessing foreign
deposits and sending samples out of the country. The
gaps in coverage could be reduced by international
cooperation.
that represent thousands of mineral

deposits in 85 countries and both con-
tinue growing (Figure 4). Hundreds of
plates of important mineralization types
are represented (for example, ~250 por-
phyry Cu-(Mo,Au); ~55 IOCG; ~25 Carlin-
type gold; ~250 VMS; 220 of uranium)
and there is also an extensive coverage
of the lesser-known metal types (e.g.
Figure 5. Kisladag-Au. Lithotheque plate #5061 with

a standard explanation sheet (Data Metallogenica
Original, Peter Laznicka, 2011)
Armenia and Iran, ore deposits in a sig- documentation, can be browsed on-line Australia, and a concealed Zn-Pb giant in
nificant segment of the Tethys collage from anywhere in the world, including Peru were represented by Lithotheque
can now be examined in a “rock solid” by geologists in remote bush who can sets in DM before the major discover-
way. instantly compare local field observa- ies have been made. One wonders how
Figure 8. Portable Lithotheque of Tasmanian (Aust-

ralia) deposits and geology to provide physically
testable record and a standard for description and
interpretation.
Figure 6a. Lithologic comparison of the Hasancelebi Fe-(Cu,Au) deposit interpreted as of the IOCG (Iron oxides,
copper, gold) type, with other deposits of the world so interpreted. Comparison based on actual lithologies can
objectively demonstrate the similarity and dissimilarity among deposits placed into a certain ore type in the
literature. 6b. Cross-sectional representation of the same deposits included in the Data Metallogenica and Data
Metallogenica Original expert systems. Laznicka (2011).
many old, uneconomic occurrences that
are a part of DM and DMO have the po-
tential to evolve into major future mines.
Lithotheque (LT) is an excellent tool
PRACTICAL APPLICATIONS OF tions with visual characteristics of thou- for no-nonsense education and train-
LITHOTHEQUE (LT) AND DATA sands of mineral occurrences around ing. In my 950 page book “Giant Metal-
METALLOGENICA (DM) the world (Figure 6). DM can inspire lic Deposits”, now in its second edition
First of all, LT and DM provide a com- and actually assist in ore discovery, al- (Springer, 2010; Figure 7), descriptions
prehensive record of mineralogy and though this feature has so far been little of hundreds of “ore giants” are linked to
petrography of mineral occurrences (or utilized because of unfamiliarity. Signifi- the corresponding “live” entries in DM, so
other geological situations in general). cant proportion of recent major mineral that a reader with DM subscription can
The present DM/DMO collections cover discoveries have been in the proverbial instantly extend the text information
a number of mined-out and reclaimed “headframe shade” (that is, close to ex- by visiting the corresponding, colourful
ore deposits that can no longer provide isting mine) and/or at or near a site of a on-line entries and a growing inventory
sample material. These records can be known, uneconomic or exhausted, mine of integrated information. Lectures and
visually examined, compared and non- or mineral occurrence. Precursor mineral short courses I have delivered in Turkey
destructively tested on site (presently occurrences at or near sites of recent sig- (in October 2011) were heavily assisted
in Adelaide, Australia) and their visual nificant discoveries: a near-giant Mo in by LT images. Exploration workshops
images, together with the supporting Queensland, a near-giant IOCG in South supported by the LT physical collec-
Figure 7. In the “Giant Metallic Deposits…” book deposit descriptions and cross-sections are keyed to Data Metal-
logenica entries, so that a DM subscribing reader can instantly extend the information search on-line. The section
above is of Rosia Montana, a 500 t Au dome-diatreme system in Romania (Lithotheque 2080)
tion have been organized in Australia and many have mineral deposits worth
and prospectors were welcomed to test learning about (Figure 9). A proposal
their exploration concepts using the and appeal to adopt the Lithotheque
“look alike” philosophy. Unfortunate- methodology internationally has been
ly, the DM physical collection has not published in the December 2009 issue of
been recently accessible on foot, pend- Episodes that is available for free down-
ing relocation to new premises. Portable loading from www.episodes.journal@
LT sets (Figure 8) can serve as standards gmail.com. I would be happy to provide
for field comparison and drill core log- personal advice and assistance.
ging.
WHY NOT ADOPT THE

LITHOTHEQUE METHODOLOGY
INTERNATIONALLY: IT’S FREE!
Lithotheque and Data Metallogenica
are mature systems, gradually devel-
oped and used since 1970. Establish- Acknowledgement. My 2011 field visits
ing an institutional, regional or national Figure 9. If a number of countries adopted uniform and sample collecting in Anatolia that
Lithotheque methodology, they would be able to tra- resulted in Lithotheque plates have-
Lithotheque collection is an inexpensive de domestic rock/ore sample sets with international
way to enhance mineral databases that partners, and contribute to the internet-based Global been generously sponsored by MTA. It is
most organizations maintain, and to Lithotheque of ore deposit images. a pleasure to acknowledge this friendly
make them more realistic and perma- collegial assistance, especially of Dr.
nent. Such collections would be held Okan Delibaş.
by national organizations and the im-
ages displayed on internet; if a number
of countries adopted the Lithotheque gradually assemble a set of international
methodology, the national information “look alike” deposits for use in domestic
could be shared globally. Lithotheque education and training. This would par-
images are ideal for on-line browsing, so ticularly benefit the developing coun-
potential investors from overseas might tries that cannot afford subscription to a
be able to asses more realistically the supranational resource like Data Metal-
exploration potential of a country and logenica and/or engage in the costly CONTACTS
make a preliminary selection of targets. “frontier research”, yet who hold what Peter Laznicka
Local (national) Lithotheque sets could is the most fundamental and valuable Metallogenica Consulting and University of
Adelaide, Australia
be traded and exchanged with overseas component of geosciences: the local in-
counterparts: a most economical way to formation. Every country “has a geology”
Article
Disruptive Innovation
in the Chromium World
THE BASICS: CHROME ORE, FERROCHROME, structures are in vogue and are paving steel and its precursor high carbon fer-
STAINLESS STEEL AND ECONOMIC PROSPER- the way for modern technology. rochrome production to be at a healthy
ITY clip of some 6-7% year on year when
The utilization of chromium ore, by and Although stainless steel is essential in one notices that the most populous
large, is used to convert the mined chro- our consumer world, it represents only countries, like Indonesia, Brazil, Mexico,
mium ore into an alloy of iron and chro- 2% of the total world steel market in vol- Turkey, and Bangladesh will drive this
mium and this is called ferrochrome. ume and its demand is primarily driven growth primarily for consumer applica-
Ferrochrome is the basic building mate- by the consumers. Catering, kitchen tions. It is estimated that the lion’s share
rial for the burgeoning stainless steel in- utensils, and home appliance usage of of China’s 15.5 million tons and India’s al-
dustry. With the addition of metal nickel stainless steel is by far the largest portion most 3 million tons stainless steel output
to iron and chromium, stainless steel is of global stainless steel consumption at in 2012 will have only one thing in mind:
manufactured for its use in a multitude 34% whereas more advanced, more Produce with the lowest cost in mind.
of products from simple table silverware technologically demanding applications
to vastly expensive desalination plants. take a smaller bite at 14%. The reason for THE CHROME ORE MARKET
With its smooth, sleek and shiny surface, this is the rapid urbanization of the two Chrome ore witnessed a record level of
and tremendous strength coupled with most populous countries, China and In- prices in the first half of 2008, with Turk-
its most important feature, corrosion re- dia and the increased usage of this alloy ish 42% grade hard lumpy at 700-750
sistance, “rustless steel” as it was called for consumer usage. Hence, the stain- USD/mt CFR (cost and freight) China
by the inventor Harry Brearley in 1913, less steel usage is a direct indication of levels. The Chinese demand appeared to
stainless steel has been in the mainstay economic development and its usage in be insatiable and anecdotally rumored
of our developed societies. It has revo- more technological applications, such as to be driven by the construction frenzy
lutionized many of the industries, and is in automotive, energy and chemicals infor the 2008 Beijing Olympics. However,
now finding more and more applications dustries still has a long way to grow. For the bankruptcy of Lehman Brothers led
everywhere in our lives, from toasters on example, stainless steel consumption per global economies to a meltdown in Sep-
your kitchen table to high speed trains. capita in Germany is 5 times more than tember 2008. Since then, the average
With the onset of green revolution and in China, and Japan’s usage is a whop- price of chrome ore has been continu-
increasing awareness of carbon footprint, ping 14 times multiple of India. It is than ously decreasing driven simultaneously
and not to mention the cost of fossil fuel, not too much of an imagination that the by an increased installed base for fer-
light, durable, aesthetic, and streamlined annual growth rates in global stainless rochrome production capacity in China.
Interestingly, China is the only country tion of many hard disk drive compa- “For example, in 1981, the old 8 inch
that produces FeCr but does not have nies started by poorly financed young drives (used in mini computers) were
the chrome ore reserves although other entrepreneurs in the Silicon Valley in “vastly superior” to the new 5.25 inch
FeCr producing countries, such as South California literally in the shadow of drives (used in desktop computers).9
Africa and Turkey, have an integrated some big, well run and well managed However, 8 inch drives were not afford-
both upstream and downstream chrome disk drive companies, the apparent able for the new desktop machines. The
ore processing operations. However, this dilemma was termed the Innovator’s simple 5.25 inch drive, assembled from
has not slowed down the Chinese ex- Dilemma and the processes and the technologically inferior “off-the-shelf”
pansion in ferrochrome production and products through which the new inno- components,9 was an “innovation” only
it is expected that China, in 2012, will vative products emerged was termed in the sense that it was new. However,
produce double the weight its mills pro- the disruptive innovation. as this market grew and the drives
duced in 2008. This could not have hap-
pened without the emergence and rapid
onslaught of disruptive innovations in
this business:
1. Low grade and almost to nothing cost

UG2 ores, which is the byproduct of
platinum group metal ores coming from
South Africa, and,
2. The increased use and investment
seen in DC plasma furnaces which are
more suited for processing lower grade
ores.
DEFINITION OF DISRUPTIVE INNOVATION

Initially introduced by Harvard Busi-
ness School professor Clayton Chris-
tensen after observing the prolifera-
on the smallest fraction which eliminates
the necessity for expensive pelletizing
and agglomeration steps required. Not
only it can accept fines with no pretreat-
ment and/or pelletizing, the chromium
recovery also increases allowing the feed
to be of lesser chromium value. It is suffi-
cient to say that the technology enabling
characteristic of DC plasma furnaces
practically reduces the typical weight of
30% of a typical ferrochrome operation
coming from the raw material feed to al-
most nothing.
The second enabler is the overall busi-

ness model which employs the use of
lower grade chromium containing UG2
improved, the companies that manufac- than 90% of global ferroalloy produc- tailings originating from platinum en-
tured them eventually triumphed while tion employs AC based submerged arc richment process, a higher valued metal,
many of the existing manufacturers of furnace technology which is charged favored in jewellery in the east and in an
eight inch drives fell behind.” 12 with the lumpy ore because the fine con- increasing number of industrial applica-
centrate or the tailings end up in the flue tions such as auto catalysts used in cars.
It was disruptive not because the prod- dust. However, the greatest technologi- South Africa based platinum mines are
ucts were any new inventions and/or cal enabler is the closed DC type plasma the source of this metal and its market is
groundbreaking but were simpler and based furnace which typically is charged forecast to grow at healthy rates. Along
more affordable, maybe not as good as with ore concentrates, screened fines with the platinum, it is cheap and easy
what was being already supplied to the out of other ore streams, low value ore to obtain a grade of 40-42% chromite
markets by the disk drive business lead- fractions and blended sweepings such (Cr2O3) concentrate in tailings which can
ers, but they were good “enough”. Hence, as the UG2 ore from platinum mining then be pelletized to feed to the AC fer-
these disruptive innovations have the operations which is a byproduct of plati- rochrome furnaces or use it as is to feed
capability to create their own niche and num processing and comes at almost no the DC furnaces. Because the cost is al-
then experience growth in the industries cost. most nothing, the additional costs of
they have entered and create totally new pelletizing can be warranted. Hence, the
industries and markets by using cheaper Reductants are typically metallurgical business model which uses the not so
materials, make it more convenient, and coal and anthracite. Cheaper carbon good, lower grade, not lumpy but in fine
address the needs and wants of the vast sources can also be utilized as they are size that can be fed conveniently fit the
“unserved” market. available. Slag conditioning is done with disruptive innovative model discussed
inexpensive limestone and quartzite above.
Now, as we apply this notion of disrup- stone. All the raw materials are in the size
tive innovation in chromium ore process- fractions of less than 40mm with no limit Third enabler for the disruptive inno-
ing, all the way from the raw material, i.e.,
the chromium ore, to the finished stain-
less steel consumer product, in this case,
say a stainless steel lunch tray at a Chi-
nese high school, we must search for the
so called three enablers, meaning, the
three discrete steps which facilitated the
emergence of disruptive innovation
The first step is something called a tech-

nological enabler, a technology which
enables the use of (in this case) raw ma-
terials which cannot be otherwise used
efficiently and cheaply with the estab-
lished technology since the objective is
to achieve the lowest input cost. More
We said it before that the stainless steel
consumption per capita is a sign of eco-
nomic prosperity and it comes at the
later stages in the economic cycle. The
below curve shows schematically that
China and India’s “balloons” will ascend
like a rocket while the developed coun-
try balloons will continue to be big but
suspended in the air. Where will this
growth come from in the next 10 years?
We think that the market dynamics will
be solely driven by the more than 1 bil-
lion consumers at different phases of
their urbanization and their preferences
in their newly found lives in some new
600-700 new cities. Here is a very good
example of this trend:
vation to take root and scale up is a com- the argument we are making here is that
mercial system to support it and that has the third enabler is the consumerization IKEA, a global leader in home furnish-
been the emerging consumer markets in of stainless steel products by the ever ings, has replaced the austenitic stain-
the developing countries, especially the increasing urbanization of the masses less steel, (more durable, shinier, more
most populous ones, China and India. As in the developing and most populous expensive nickel containing alias 300-
was previously mentioned, in 2011 34% countries. type), that it used for production to less
of the stainless steel by weight was con- expensive ferritic stainless steel. Other
sumed to make catering tools and equip- Within the scope of the third enabler, producers are also following suit and this
ment and appliances. That number goes disruptive innovation now has the room has resulted in 5 times the volatility in
up to something like 85% by volume. to scale up and make its impact in the the nickel prices between 2005 and 2012
You need a commercial system to nur- form of changing consumer tendencies . Generally speaking, it is projected that
ture this disruptive innovation, support as supported by the slight but notice- “lowest” cost stainless steel production
the business model, and scale up, and able technological changes. will have a higher percentage in the near
of information disseminated within the
company as well as from outside sources,
on the web, conferences, etc. They have
especially benefited from the discussions
with Yasar Özdirek, Cengiz Onal, and Elif
Öztürk, all with Yıldırım Holding in Maslak,
Istanbul.
REFERENCES
1- CRU & World Bank Estimates
2- Gaetano Ronchi, Senior Consultant,
“Stainless Steel for House-ware 2012-
1015”, Singapore, 2012
3- Wolfgang Lipp, Managing Director,
“Stainless Steel End Use”, Singapore,
2012
4- Asian Metal Database
future. Hence, the commercial environ- descent after the 2008 crisis. We argue 5- SMR Forecasts
ment which embraces the lowest cost here is that a disruptive innovation, en- 6- http://www.bloomberg.com/
stainless steel made from the lowest abled by three factors, is fueling this slide news/2012-08-07/china-overtakes-
grade of chromium ore utilizing a tech- for chrome. First, we claim that an in- south-africa-on-ferrochrome-output-
nological enabler, the DC furnace com- creasing percentage of DC furnaces used merafe-says.html
pletes this circle of enablers making the for smelting chromium ore into ferro- 7- http://www.worldstainless.org/Files/
discontinuous innovation to take hold chrome is presenting significant advan- issf/non-image-files/PDF/2010_Global_
and rule the market. tages over the conventional AC type fur- stainless_steel_cycle_exemplifies_Chi-
naces by accepting lower grade, cheap- nas_rise_to_metal_dominance.pdf
CONCLUSION er, and ore fines which is a byproduct of 8- http://en.wikipedia.org/wiki/Disrup-
Chrome ore, which is found in abun- another more precious metal, platinum, tive_innovation
dance in the world, especially in South coming at almost no cost. We claim the 9- http://blogs.hbr.org/innovations-in-
Africa, experienced a dramatic price in- latter is the second enabler. For the third health-care/2011/03/a-disruptive-solu-
crease a few years ago, hovering around enabler, we point out to the tremendous tion-for-heal.html
$700-750 per ton, and then started its growth seen in the urbanization in China
and India, close to 1 billion people mov-
ing into urban centers and increased us-
age of cheapest stainless steel products CONTACTS
more for catering and home appliances.
Alp Malazgirt1, Görkem Kavçak2
1) CEO, Yıldırım Holding AŞ
ACKNOWLEDGMENTS
This paper is published by permission and 2) Market Analyst, Yıldırım Holding AŞ
encouragement of the Yıldırım Holding E-mail: [email protected]
president Robert Yüksel Yıldırım. The au- Phone: +90 (212) 290 30 80
Website: www.yildirimholding.com
thors have drawn upon the various types
Article
Graphite: A Critical
Raw Material and Turkey
Raw materials and natural resources, GRAPHITE AT A GLANCE:
Element or Element Relative Supply Leading
have always a critical and strategic role Group Risk Index Producer Graphite is a natural form of carbon with
not only today but also in the course of Antimony 8.50 China the chemical formula C and is character-
history. In fact, among the reasons for Platinium Group ized by its hexagonal crystalline struc-
8.50 South Africa
Elements
World War 1, efforts to seize Europe’s ture. It occurs naturally in metamorphic
coal deposits in the Alsace-Loren is said Mercury 8.50 China
rocks such as marble, schist and gneiss.
to have an important role. Tungsten 8.50 China
Actually we know graphite in our daily
Rare earth elements 8.00 China life very well; it was the “lead” part of a
Technology and industry manufacturing Niobium 8.00 Brazil lead pencil. Other two important natural
countries and Country groups have also Strontium 7.50 China carbon forms are Coal and Diamond.
recognized the increasing importance Bismuth 7.00 China
of the raw materials todays and were Thorium 7.00 India Graphite materials fit into two primary
forced to adopt measures, and develop Bromine 7.00 USA classifications :
strategies for accessing and securing the Graphite 7.00 China •• Synthetic Graphite
supply of these raw materials. European
Table 2: BGS Risk List 2011 2
•• Natural Graphite
Union is one of the most important of
them, particularly due to geographical Synthetic Graphite is an industrial end
proximity to Turkey, and Turkey’s inten- product rather than a natural resource,
sive economic relations with it. The EU so we will mainly focus on Natural Graph-
started to act and establish an initiative ite as it is a raw material from a natural
called “Raw Materials Initiative” and pre- In both studies made by EU and BGS, two resource. Natural graphite can be further
pared, started to developed strategies important raw materials, especially for divided into three primary types4;
and alternate sources for 14 raw materi- our country, are noticeable immediately; •• Amorphous Graphite
als that they thought important and criti- •• Antimony (in the first rank and has a •• Flake Graphite
cal. These raw materials are: higher risk index than rare earths) •• Crystalline Vein
•• Graphite
Antimony Indium These two raw materials are being pro- Each type has characteristic properties
Beryllium Magnesium
duced and have potential to be pro- and is formed in a unique geologic set-
duced more in Turkey. Now we will have ting. But in the basis of this classification,
Cobalt Niobium
a further deeper look at Graphite. structure of carbon element lies. As an
Fluorspar PGMs (Platinum Group Metals)
Gallium Rare Earths
Germanium Tantalum
Graphite Tungsten
Table 1: Critical Raw Material for EU1
A similar study has been carried out by

BGS-British Geological Surveys, by evalu-
ating over 50 raw materials, by identify-
ing critical risk index for them, and ranks
them based on importance. And BGS
published a list called “Risk List 2011”
example Flake Graphite has a carbon duction worldwide. Other important ed going after graphite exporters that
structure of flaky as it is named. producers are North Korea, Brazil, Mexi- had been dodging or underpaying the
Graphite has some unique specifications co, Canada, Norway Madagascar and Sri 20% export tax on graphite, sending ex-
that makes it very important, it is : Lanka. As I said above as we don’t have ports down and prices up. (China also has
•• Excellent heat conductor very clear idea about production quan- a 17% value-added tax on the material.)
•• Excellent electricity conductor tities and China’s share in production,
•• Heat resistant (Melting Point 3927 C°) but we have very clear indicators about Besides this, there are also very serious
•• Chemical and Corrosion resistant the market shares, when we analyze the expectations from Lithium ion battery
•• Resistant to acids and oxidizing United Nations Trade Statistics, we found market. While currently small, it’s the
agents out that China’s share in total graphite most important growth market for natu-
•• Lubricating export is a around 85%7. This means that ral flake graphite. Lithium-ion batteries
China is a monopoly in the market. This contain up to 10 times the amount of
Natural Graphite are being used in many situation wasn’t realized for a long peri- graphite as lithium, so the potential is
industries, these industries and shares in od of time, as there wasn’t too much sup- great, especially if electric vehicles (EVs)
total natural graphite consumption are ply problem in the market, and graphite catch on in the market. It was estimated
as follow5; wasn’t a hot commodity in the market that Lithium ion battery market could
•• %41 - Steel & Refractories because of its low price. But in 15 month create another 1 million tonnes demand
•• %14 - Automotive Parts periods between January 2011 and by the year 20205. These expectations and
•• %14 - Lubricants March 2012 graphite prices increased price increases start a boom in graphite
•• %11 - Carbon Brushes 140%7. To understand how graphite market, and currently over 100 graphite
•• %10 - Batteries prices developed you can compare the projects announced to the market.
•• %10 - Others prices in 2006 and 2012 in below table.
But we must add a comment here, first
GRAPHITE PRODUCTION AND PRICES 20068 20129 of all it is very obvious that majority of
Natural Graphite production is estimated Large Flake %94-97 C + 80 Mesh 800-950$ 2500-3000 $
around 1 million tonnes/ year, as 600,000 Medium Flake %90 C -80 Mesh 440-495 $ 1500-2000 $
tonnes Amorphous and 400,000 tonnes Amorphous Powder %80-85 C 240-260 $ 600-800 $
various grade and size Flake graphite. Prices are CIF European Port $/ton
In reality we don’t have very exact and
certain numbers for production quanti- Table 3: 2006 and 2012 Graphite Prices
ties, mainly because Countries statistics

related to production not so transparent
and accessible, also production figures
coming from producers which could in-
clude some speculation. Prices have significantly increased af-
ter 2009, the main reasons for this in- these projects won’t be developed for
China is the biggest producers and ac- crease are ; because of the crisis in 2008, next stages, and won’t be even closer
counting 80% of the total graphite pro- producers cut back their capacity and to production, as they are too sensitive
when demand started to come back for on prices, they are very high costs proj-
graphite in 2009, producers were caught ects, and for mining perspective they
off guard. At the same time, China has are logically not doable. If you look care-
closed down or consolidated some pro- fully you see that all of these projects are
duction, to better control environmental flake graphite projects, as they explained
issues and protect graphite reserves. that flake graphite will be very impor-
tant for new uses like Lithium batteries,
Adding further pressure to prices, in Janu- but currently we don’t have that size of
ary 2010, the Chinese government start- demand, and on the other hand, it is
restart their operations and occasionally
produce small quantities.
Production (Metric Consumption (Metrict

Year
Tonnes) Tonnes)
1985 - 4,100.00
1986 3,586.00 4.000.00
1987 8,900.00 3,400.00
1988 12,911.00 13,000.00
1989 11,000.00 12,000.00
1990 18,712.00 18,712.00
1991 26,763.00 26,763.00
1994 5,000.00 25,000*
1995 5,000.00 25,000*
1996 5,000.00 25,000*
1997 5,000.00 25,000*
1998 5,000.00 25,000*
1999 5,000.00 25,000*
Table 5: Turkey Graphite Production between 1985-199911
just because flake graphite prices actu- cal graphite mineralization determined.” Year Production (tonnes)
ally high enough to show the investors Unfortunately we couldn’t find too much 2003 0.00
a profitable project. We will see some detailed work on graphite mineralization 2004 28.00
price decreases in the market and they in Turkey but at least we know where the 2005 0.00
will significantly affect these projects mineralization is and what could be the 2006 0.00
and juniors. Almost all of these projects quality of it. According to MTA all the de-
2007 0.00
are financial investment/venture capital termined mineralization is amorphous
2008 3,236.00
projects, and even a small price decrease type, some of the important reserves
2009 2,400.00
will create a panic for financial investors. and grades in Turkey are as follow:
For this reason to develop low cost min- Table 6: Turkey Graphite production
ing projects are very important. In 1980 Turkey has two graphite min- between 2003-200913
ers, producing graphite from their un-

GRAPHITE IN TURKEY: derground graphite mines , These are
In 8th Quinquennially Development Karabacak Mining (now Oysu Graphite)
Plan it was said that: “Graphite studies whose mines and flotation plant located
and works in Turkey was started in 1941 in Kütahya - Altıntaş - Oysu and Bilginer
in Turkey according to MTA (General Mining whose mine located in Muğla-
Directorate of Mining Exploration and Milas-Yayladere. Both of the companies
Research of Turkey) and Mining Affairs carried out some flotation enrichment Most important figure in these tables
records, and in over 22 region, economi- studies, and in 1991 Karabacak mining are production of 26,000 mt of graph-
set up a 100 mt/day input capacity flo- ite in 1991. If Turkey could hit the same
tation plant in their mine, and Bilginer production figures again, these means
Reserve Quantity Average
Place/City
(metric Tonnes) C% mining also set up a small pilot flotation that Turkey could be one of the top five
Yozgat < 100 000 45 plant in their mine in Muğla. But in 1992 graphite producers in the world. With
China entered the graphite market with best of my knowledge and experience, I
Kastamonu Unknown 60
low prices, and market discovered pe- believe that Turkey could hit this pro-
Aydin 150 000 10
İzmir - Tire – Karamersin 150 000 8 troleum coke as a subsidiary of graphite

İzmir - Tire – Çeşme 200 000 6 mainly in steel industries. These create
İzmir - Tire – Başköy 150 000 10 a collapse in the market and not only in
Istanbul 150 000 30
Turkey but also all over the world, lots of
Mersin Unknown 45
mine and producers stop their produc-
Adiyaman Unknown 45
tion.
Mugla 30 000 10
Till 1999 grapihite production continue
Kutahya-Oysu 130 000 20
in Turkey but later stopped again, and
Table 4: Main Graphite Mineralization in Turkey11 in 2008-2009 flotation plant in Kutahya
The mining solutions you expect.
From the people you trust.
becomes
Trusted by Customers in Over 4,000 Sites

Surpac in More Than 130 Countries
We have worked hard to earn our position as the largest global
GEMS supplier of mining software solutions by making the lives of
customers like you easier, while helping solve some of the
Minex industry’s toughest challenges. With our software and services
for geology, engineering, and operations that span the mining
Whittle GeoloGy, value chain, we are providing innovative ways of addressing
MineSched enGineerinG skills shortages and enabling the most important asset you have
to be optimised – your ore reserve.
and operations
PCBC As part of Dassault Systèmes, The 3DEXPERIENCE Company,
we will continue to lead the way in delivering tomorrow’s
Hub innovations to model and simulate our planet, under our new
name, GEOVIA. With our global reach and local presence, you
I n S i te will find us in every major mining centre around the world.
Find out more: 3DS.COM/GEOVIA
S e r v i ce s
Authorised Distributor: Almina Madencilik
Address: AşağıÖveçler 1322 Cadde, No: 67/5 Çankaya,
Ankara/Türkiye
Tel: +90 312 4737836 pbx
Email: [email protected]
duction figures, because we have more day input capacity we are talking about
than enough sources for this. 5 million USD for flotation plant. We also
consider some other investment cost,
CASE STUDY: A SMALL AMORPHOUS GRAPH- and some due diligence costs before in-
ITE MINE IN TURKEY vestment as follow;
People who read this article could ask
several questions; Why invest in Amor- Flotation Plant Investment $5,000,000.00
phous Graphite in Turkey? And Is it really License Purchasing Cost $100,000.00
worth to consider to invest a small re- Licensing and Permissions $70,000.00
serve? I want to analyze a small graphite Settlement and Startup $200,000.00
deposit, and I think this will answer lots Drillings $160,000.00 creasing importance. Even without con-
of questions. I couldn’t give exact loca- Analysis and Test Works $30,000.00 sidering new demand drivers, traditional
tion, and information about the mine as Contingency 10% $546,000.00 markets such as Steel and refractories
it is a confidential project currently pre- Total Investment $6,106,000.00 are very important industries for con-
pared for a company. But It is 230 km far sumption. Especially because of China,
from one of the main ports of Turkey, and For mining and processing cost, SGS ad- industry faces an important supply gap,
very close to infrastructure. I will use one vises following figures which we believe mainly traditional graphite consumers.
of the SGS reports and figures for cost that reasonable also for Turkey (even it is But because of the current market and
and capital investment requirement, so a bit high); economic conditions low cost projects
that we will have internationally accept- are very important, as prices could fluc-
ed costs. There is 4 geophysics anomalies Production Costs per tonne tuate in the short term.
determined and only 1 of them was test- Overburden&Waste $3.81
ed with drill, and for this one anomaly Mining Costs Ore $4.11
Turkey has a graphite mining history for
MTA calculated following figures (data Processing Cost (incl Administration costs) $13.69
more than 30 years, and geographically
taken from MTA records); it is very close to Europe which is the
With Consideration of above cost we main importer of graphite. According to
Information About the Mine reach following annual cost table; UN trade statistics EU importing roughly
Possible Reserve 307,146 mt around 150,000 mt graphite annually
Strip Ratio 6.14 mt/mt Annual Cost Calculation and this demand is mainly met by China.
Average Grade 26.45 % Fix C Overburden&Waste $1,671,302.84 So a very important market is just next
Mining Costs Ore $293,865.00 to Turkey and when you consider the de-
With this reserve figures we are planning Processing Cost $978,835.00 livery time and logistic costs, Turkey has
to produce roughly 21,000 mt of con- Total $2,944,002.84 very important competitive advantages
centrate with 85% C content and with against China.
95% efficiency. 21,000 mt won’t have too And finally we reach below profit/lost
much negative effect on supply side so table with 3 different price level. Our case study that we explain above
that we could benefit with current high shows us that even
price level. For production of 21,000 mt Selling Price 1 Selling Price 2 Selling Price 3 a very small reserve
concentrate annually, 250 mt/day input $500.00 $600.00 $800.00 with high grade
capacity flotation plant will be sufficient. Concentrate Production ore (when we con-
21,136.66 21,136.66 21,136.66
And production figures will be as follow; Per year (mt) sider this project
Sales Income $10,568,330.88 $12,681,997.06 $16,909,329.41 with other 26% fix
Yearly ore process and production Production Costs $2,944,002.84 $2,944,002.84 $2,944,002.84 C content, it has the
Working days for a month 26 Transportation Costs Per tonne $60.00 $60.00 $60.00 highest quality ore
Effective working month/year 11 Annual Transportation Cost $1,268,199.71 $1,268,199.71 $1,268,199.71 among other proj-
Working days for a Year 286 First Year Sales Profit (EBITD) $6,356,128.34 $8,469,794.52 $12,697,126.87 ects worldwide) of-
Overburden/waste excavation
438,662.16
Sales Profit Over Mine life $27,304,382.31 $36,384,178.43 $54,543,770.65 fers very profitable
in a year (mt)
mining business.
Ore excavation in a year (mt) 71,500.00
As you see above table, in worst case And we know that some of the mine,
Concentrate Production
in a year (mt)
21,136.66 scenario for 500 USD price for 85% Fix which is not yet studied had over 60% C
C content graphite, project will have 6,3 contended ore in Turkey.
With above estimation it means that we million USD net profit in the first year
have 4 years 4 months of mine life. Again which even pay the investment cost in We can’t say Turkey is an important
according to SGS report, for an invest- year 1. player, and have significant graphite re-
ment of a flotation plant it must be con- serves, but to have a profitable graphite
sidered 20,000 USD / per ton of plant in- CONCLUSION: mining, we don’t need million tonnes of
put capacity. So for a plant with 250 mt/ Graphite is a critical raw material with in- ore and to be number one in the world.
Even with some additional R&D for ite%20110922.pdf , Quinquennially Development Plan , Min-
producing higher grade graphite con- 4- http://www.asbury.com/ ing Experts Commission Repor, Industrial
centrates, we will have better profit 5- Uysal, Sait, Graphite, Turkey and Mena Minerals Raw Material SubGroup General
scenarios, because higher grades offer Industrial Minerals and Mining Summit, Industiral Minerals 1, Asbestos, Graphite,
higher values. And we can say without May 2012 Calcite Fluorite, Titanium Working Group
doubt that, yes Turkey offers profit- 6- Roberts, Jessica, Graphite’s Battery Report, 2001, DPT:2618-ÖİK:629
able, small scale, manageable, high Boom, Industrial Minerals Magazine, 11- Urcun, UYGUR, Graphite Mining in
profit, low cost graphite opportunities. March 2012, No:534, Turkey, TMMOB Chamber of Mining En-
p. 39 gineers Mining Bulletin, July-September
NOTES AND BIBLIOGRAPHY 7- Moores, Simon, Graphite Red Alert, In- 2008, Volume: 86, page: 44
1- European Commission Enterprise and dustrial Minerals Magazine, March 2012,
Industry, Report of the Ad-hoc Working No:534, p. 37
Group on defining critical raw materials, 8- Industrial Minerals, December 2006,
Critical Raw Material For The EU, June No:471, p.74
2010 Industrial Minerals, March 2012, No:534, CONTACTS
2- http://www.bgs.ac.uk/mineralsuk/sta- p.69
tistics/riskList.html 9- Hiyatha, Alisha, Rewriting the Book Sait Uysal
Mining Professional
3- Archer Exploration Limited, Graphite, on Graphite, Mining Markets, June
2011, http://www.archerexploration. 2012,V.5,No:2, p22-23 Website: www.saituysal.com.tr
com.au/assets/pdfs/AXE%20Graph- 10- Turkey State Planning Institute, 8th
Article
Investment in Mining & Beneficiation

in Turkey - A National Imperative
WELCOME TO THE CENTER OF ZN METAL (ESTIMATED IMPACT ON BOP)
THE WORLD Year Export (Tons) Import (Tons) Export (USD) Import (USD) Balance (USD)
When arriving in Turkey one should feel 2012 16,464 383,099 158,127,527 3,679,413,982 - 3,521,286,454
welcome to the centre of the world, 2013 17,699 411,831 178,486,447 4,153,138,532 - 3,974,652,085
because geographically – It literally is! 2014 19,026 442,718 201,466,577 4,687,855,118 - 4,486,388,541
Clear evidence is everywhere depicting 2015 20,453 475,922 227,405,398 5,291,416,464 - 5,064,011,066
the more than 10,000 yrs of civilisations 2016 21,987 511,616 256,683,843 5,972,686,334 - 5,716,002,490
making it geo culturally the centre. 2017 23,636 549,988 289,731,888 6,741,669,699 - 6,451,937,811
2018 25,409 591,237 327,034,869 7,609,659,673 - 7,282,624,804

Ofcourse in recent times it has also be- 2019 27,315 635,580 369,140,608 8,589,403,356 - 8,220,262,748
come clear that its where East meets
2020 29,363 683,248 416,667,462 9,695,289,038 - 9,278,621,576
West and has become geopolitically po-
2021 31,566 734,492 470,313,397 10,943,557,502 - 10,473,244,104
tentially the most important centre.
2022 33,933 789,579 530,866,247 12,352,540,530 - 11,821,674,283
And lastly with its top 3 fastest growing
2023 36,478 848,797 599,215,276 13,942,930,123 - 13,343,714,847
economy geo-economically – all must
not only watch but be invested this
space or get left behind. CU METAL (ESTIMATED IMPACT ON BOP)
Year Zn Pb Cu Fe-Mn Fe-Cr Total

ECONOMIC GROWTH VS. BAL- 2012 -509,58 -195,47 -3,521,29 -555,27 -1,063,30 -5844,92
ANCE OF PAYMENTS (BOP)? 2013 -575,19 -220,64 -3,974,65 -626,77 -1,200,20 -6597,45
Ofcourse with the very strongly expand- 2014 -649,25 -249,05 -4,486,39 -707,46 -1,354,73 -7446,87
ing economy come some serious sup- 2015 -732,84 -281,11 -5,064,01 -798,55 -1,529,15 -8405,66
porting requirements such as an un-
2016 -827,19 -317,30 -5,716,00 -901,36 -1,726,02 -9487,88
restricted supply of energy and metals
2017 -933,69 -358,16 -6,451,94 -1,017,41 -1,948,25 -10709,45
and minerals. And now as a result of a
2018 -1,053,91 -404,27 -7,282,62 -1,148,40 -2,199,09 -12088,29
historic lack of focus on these elements
2019 -1,189,60 -456,32 -8,220,26 -1,296,26 -2,482,22 -13644,66
of support for the economy, Turkey is
2020 -1,342,76 -515,07 -9,278,62 -1,463,15 -2,801,80 -15401,41
and will remain for sometime in the grip
2021 -1,515,64 -581,39 -10,473,24 -1,651,53 -3,162,54 -17384,34
of a serious negative balance of pay-
2022 -1,710,78 -656,24 -11,821,67 -1,864,17 -3,569,71 -19622,57
ments. Energy related natural resources
2023 -1,931,04 -740,73 -13,343,71 -2,104,18 -4,029,31 -22148,98
and Metals imports in particular being
the major contributors in this regard.
Its fundamental geological prospectiv-
By way of an example the tables and ity and proliferation of infrastructure
graph below show the conservative (Copper, Zinc, Lead, Iron Ore, Chrome,
estimated impact on the BoP by 2023 etc), industrial mineral and precious
of imports of two main industrial com- metal commodities, when mated with
modities Copper & Zinc and the collec- its highly educated, strong work ethic
tive impact of 5 major imports for indus- population, it is only a matter of time
trial use. and ironing out of bureaucracy in indus-
try related government departments,
ECONOMIC GROWTH VS with some business culture factor modi-
BALANCE OF PAYMENTS? fications and this will be turned around
But this is Turkey! significantly.
and second, a historic lack of focus on
TURKEY BALANCE OF PAYMENTS (MILLION USD$) professionalism in mining companies
established and lack of adherences to
any acceptable standards in terms of
•• Policies & procedures, Safety
•• Management & Reporting with Re-
gulation and Inspection
While any beneficiation being seen as

necessary evil with export of un-bene-
ficiated materials prevalent across the
sector in search of short term profit.
SO WHAT ARE THE MISSING

LINKS?
There are a number of clear missing links
or elements currently available for inves-
tors in the sector as follows;
MINING POTENTIAL IN TURKEY

•• Easily accessible, publicly available,
clear information on potential pro-
Gold (100%), Silver (100%) Copper (100%), Zinc (100%), Lead (100%), Chrome
Deposits & Sufficiency Potential (%) (100%), Manganese (75%), Iron Ore (40%), Coal (75%), Ind Minerals (100%), REE’s jects by commodity;
(100%)
•• Data and/or information which is
Metals & Minerals Commodities Markets Future Market: 100% Domestic for 100% of production capacity: Growing demand
compliant with recognizable mining
and mineral project definitions, stan-
dards and codes;
THE MINING VALUE CHAIN
•• On all prospective or mineable geog-
Locate Evaluate Establish Mine Transport Beneficiate Market Divest raphical areas and properties across
all regions of Turkey;
•• Ranked and prioritized with stated
Determined
Presence of a
Mineral Deposit Bankable
Feasibility
Access to
available local provincial and state
The Mineral
Resource Contained incentives for investment;
And
Classified
Broken Rock
Stockpiled
Tonnage
•• Availability of proximal skills, infrast-
At Grade Saleable ructure & services;
Products
Increased
Enterprise
•• Pre-prepared developmental road
Worth New map to facilitate immediate econo-
Economic
Circumstances mic impact,
heel? Mining historically has shown a CONTINUED

The mining potential in Turkey and its clear lack of focus on sustainability with The missing links or elements currently
ability to generate future self sufficiency a ‘Find it, Dig it, Sell it’ basic approach unavailable as mentioned in detail above
is illustrated in the table below. borne out of the trading culture embed- are the cause of a significantly measure-
ded in the populations gene pool. able slow pace of investment growth and
AN ECONOMIC ACHILLES HEEL? more importantly project execution at
- MINING And with first, a fundamental lack of un- feasibility, construction and production
But is Mining an economic Achilles derstanding of the Mining Value Chain stages in the required commodities
to deal with the BoP issue fast enough to PROJECT COMMUNICATION Value Chain – “Essentially Repu-
stop the economy running out of steam PLAN tation Management”
and the country running out of funds to And the plan must ofcourse have a clear- 3. Selection of the investments and
support further growth. ly specified objective to; local investment partners – “Es-
sentially Sustainable Development
So what should the government be do- •• Develop a Communication plan for Management”
ing to rectify this when the incentives the project to be seen in a positive 4. Project Economic Delivery (man-
alone are just not enough to accelerate way, aligned with “Equator Principles” agement of expectation) – “Essen-
real development to sustainable eco- (“EQP”) for the attraction of mining/ tially Prioritization for Realistic De-
nomically contributing production? beneficiation investment in Turkey; liverables”
•• To eradicate the negative perception
It should have a clear economic focus created by environmentalists and ot- CONCLUSION
on the independent contracted profes- her activists against mining & mineral Well after all of the above it should
sional delivery of the following; exploitation; and be a no-brainer to execute this plan,
•• Through engagement with com- shouldn’t it!? Unfortunately this plan
THE ECONOMIC FOCUS munities proximal to likely mining/ has existed, architected by myself origi-
•• Creation of an attractive “Credible & beneficiation development sites for nally in 2005 for the incumbent Minister
executable” visible Mining & Benefici- participation and broader social de- at the time Dr. Hilmi Guler. To his consid-
ation investment plan; velopment for all stakeholders. erable credit Dr. Guler tried to get things
•• With focus on investment support of started before he was replaced by the
broader & deeper exploration using REGIONAL INCENTIVES current incumbent.
all available technologies for resour- Another clear objective will be to prop-
ce ID & classification; erly contextualize the regional incen- Since then bureaucratic blockage by
•• With focus on mining value chain tives offered by the Turkish Government parties claiming ownership, looking
positioning for investment definiti- to give focus to; to steal the idea for credit award have
on and development selection with •• High Value, easily accessed, focus served to sterilize the systems ability to
investment support for all beneficia- under-developed areas like Region deliver. No government or bureaucracy
tion in particular; and V Eastern Anatolia and Region VI SE can deliver this or any plan for immedi-
•• With focus on closure of the entire Turkey; ate impact without independent quali-
value chain, Exploration, Mining, Be- •• Create opportunity to continue grow fied outside contracted consultants to
neficiation, Smelting & Refining, for at an accelerated rate into a major drive and deliver the required results.
optimal resource utilization within investment hub for Mining/Benefi-
the economy. ciation in Eastern Europe/Asia minor I continually live in hope that someone
with massive spin offs in Financial, somewhere is listening because we/Tur-
MINING BUSINESS IMPERA- Industrial consumable, Industrial key/our country needs this now!
TIVES equipment, Technology and Human
The clear imperatives within the gen- Resource development; and
erated plan for immediate execution •• Enable realization of many extensi-
thereafter must; onal benefits in terms of economies
of scale and economic support of ci-
•• Ensure exploration programmes tizens in all sectors of the economy
meet internationally accepted norms both local and regional.
& standards; The main key deliverables will be as fol-
•• Ensure Mineral Resources and/or Re- lows for such a plan.
serves are defined to verifiable and
auditable limits within accepted co- PROJECT KEY DELIVERABLES
des for reporting on Mineral Resour- 1. Compliance, Governance, Trans- CONTACTS
ces, e.g.: NI43-101 or JORC; parency and Sustainability report-
•• Undertake Valuation of all Mineral Re- ing are key in the establishment of Alan Clegg
sources and/or Reserves defined for Credibility – “Essentially Investor Chairman, Afrasia Mining & Energy Consulting AS
exploitation according to accepted Head Office: Mustafa Kemal Mah. 2146. Sokak.
Relationship Management”
Demirler Atlas Plaza. No: 14/16. Ankara / Turkey
and recognised codes, e.g.: VALMIN 2. Creating a reputation of delivery
Phone: +90 (312) 219 44 15
or SAMVAL in order to attract positive through delivering on the full value
Website: www.afrasia.com.tr
investment for project development of the projects by completing the
Article
Investing in
Turkish Mining Industry
The history of civilization would have ban population in need of jobs and eco- to industrial minerals, there has been an
been very different without the discov- nomic prosperity. Mineral commodities interest from foreign “junior companies”
ery of stones and metals. Since the ex- are extensively used in construction and and new founded local mining compa-
istence of humankind on Earth, the pur- manufacturing industries. The global nies for precious and base metals. Begin-
suit of a better life has been an intrinsic demand for metals has only decreased ning from almost no ounces back in late
objective. During the industrial revolu- in 2009 because of the economic down- 90s in 2011, more than 850 thousand
tion, coal, a key element, powered steam turn. However, the consumption and ounces were produced by several mid
engines for a long time. The importance economic wealth of developing coun- and small sized operations. Turkey has
of minerals and metals arose with devel- tries will continue to rise. become one of the main destinations
opment. Even in today’s world, different Turkey, with its large territory and central for foreign investments in Eurasia. It has
metals and minerals are driving the in- location, has much diversity in miner- been experiencing its gold rush in last
formation age. als. Over 50 different metals and mineral 10 years. Many junior foreign compa-
In the last decades, the need for min- commodities are produced in the Anato- nies and local companies from different
eral commodities has been increasing lian peninsula. In particular, Turkey is the industries have been showing great in-
mainly due to demands from develop- global leader in boron, feldspar, perlite, terest in mining. Despite having a huge
ing countries such as China, Brazil, India, and pumice production. Turkey’s share potential for minerals, the country has it
Mexico, Russia and Turkey. What these of these minerals to world production is own strengths and weaknesses in the
countries have in common is a young ur- in 2011 is shown in Figure 1. In addition field.
M. MUSTAFA KAHRAMAN is pursuing his DR. SEAN DESSUREAULT is an Associate business process alignment, and tech-
Ph.D. in Mining Engineering and Systems Professor in the Mining and Geological nology selection and implementation.
and Industrial Engineering at the Uni- Engineering department at the Univer- Dr. Dessureault has been a consultant for
versity of Arizona. He received his B.Sc. sity of Arizona. He received a B. Eng. in numerous large mining companies in-
in Mining Engineering from Istanbul Mining Engineering from McGill Univer- cluding the United Nations, where he fo-
Technical University, in 2007 and his MS sity from Montreal, Canada, and his M.Sc. cused on how developing nations should
degree in Mining Engineering, from Uni- and Ph.D. from the University of British use technology to expand the benefits
versity of Arizona, in 2011. He works as a Columbia, Vancouver, Canada. Dr. Des- of their resource sector. While on sab-
Research Associate and Project Manager sureault has worked at mines through- batical from 2008 to 2009, he worked for
in the Mine Intelligence Research Group out Canada during his education whilst Freeport-McMoRan Copper & Gold’s Au-
(MIRG) where he applies business intel- engaging in part-time consulting. His tonomous Mining Group MISOM CS de-
ligence tools and integrates different IT appointment to the University of Arizona veloped and implemented a corporate
systems for large mine operations. MIRG began in January 2002. strategy for IT in mining operations for
Lab consists of experienced researchers Peabody Energy. In 2010, MISOM CS es-
from different disciplines, including re- In 2004, Dr. Dessureault formally estab- tablished a sustainable development lis-
searchers from Mining, MIS, and Systems lished a consulting firm, Mining Informa- tening tool called Stakeholder Listening
and Industrial Engineering. His areas of tion Systems and Operations Manage- and Analysis (www.stakeholderla.com),
interest are business intelligence ap- ment (MISOM) Consulting Services Inc. which uses the vast quantity of data in
plications in mining, integrated control MISOM provides a variety of high-tech social media to better understand and
centers,Project Management, strategical services to the mining industry (www. communicate with communities. Dr.
mine management, process optimiza- misomcs.com). Its core competencies Dessureault is the director of MIRG Labo-
tion, and cost reduction strategies. are in technology strategy, mine auto- ratory (www.mirg.arizona.edu), where
mation, data warehouse development, he manages several research programs.
2), salts (group 3), industrial minerals,
coal, precious and base metals (group
4); and semi-precious stones (group
2). These amendments to mining laws
relieved the vast bureaucratic red tape
for investors to get permits. In conclu-
sion, amendments to the mining law
in 2004 encouraged foreign and local
investors to invest in mining. However,
this resulted in many investors obtain-
ing and holding mining licenses for trad-
ing purposes. In 2010, new amendments
were implemented with the purpose of
preventing speculative license holders
and requiring production or exploration
from license holders.
COUNTRY PROFILE: TURKEY changes to the mining regulations have
Going two decades back, almost 90% been put into place. THINGS TO CONSIDER BEFORE INVESTING
of the mining operations were owned IN TURKEY
and operated by government. Currently, In 2004, the new regulation divided Investment in an emerging country has
the government still owns significant minerals different groups and different it is advantages and risks. An in-depth
amounts of ventures. However, the state liabilities such as royalty and licensing analysis of the country is a requirement
of the mining industry has changed in for each group. These groups include: to understand the many risk factors re-
the last ten years. Since 2004, in an effort construction materials (group 1), di- lated to the country’s economy and its
to encourage local and foreign investors, mensional stones such as marble (group cultural and sociopolitical climate.
ECONOMY AND CURRENCY

Historically, Turkey’s economy has been
sensitive to downturns. In the last 20
years, there have been four years with
negative growth rates. However, in the
last decade, the Turkish economy has
recovered from a triple digit inflation
rate. Consequently, it has become one
of the fastest growing economies in
both Europe and the world. Particularly,
after the mortgage crisis in 2009, Tur-
key rapidly recovered from a negative
growth rate and averaged 8.8% growth
rate in 2010 and 2011-only 1% less than
China. In fact, Turkey is one of the main
Figure 1 Turkey’s shares in world mineral production (source: USGS Mineral Commodity Summary 2012)
contenders of BRIC (Brazil, Russia,
Figure 2 Turkey’s GDP Growth Rate Comparison with BRIC (source World Bank)
India and China) which symbolizes the POLITICAL STABILITY AND POLITICAL RISK for the past 10 years. It increased its votes
economic shift from a G7 developed One of the key factors when investing in in the last two elections; moreover, polls
country to developing country (See fig- an emerging economy is political stabil- and surveys indicate that this trend will
ure 2). ity. Globally, there have been many ex- continue. The AKP is expected to con-
Within the past few decades, Turkey had amples of nationalized countries where tinue their governing for at least one
been battling with currency devalu- foreign investors were unwelcome and more term. Mining investors could ben-
ations and a banking crisis. After the were consequently expelled. Normally, efit from this result for two reasons. First,
economic crisis in 2001, amendments investors prefer democratic countries, the current government has been pro-
to the banking system were made. One where stability of government and ex- mining and has invited foreign financiers
such amendment focused on transpar- ecution of the rule of law are not causes to invest in the Turkish mining industry.
ency, which aligned the Turkish banking for concern. In contrast, weak regimes Additionally, the existing laws and regu-
system in compliance with international and unstable leaders or frequently lations for mining investments were un-
standards. As a result, the Turkish cur- changing governments create a lack of dertaken by AKP government.
rency, “Lira”, has become arguably more consistency in implementation and en-
stable than in the 90s)Similar to most forcement of the policies. After a long SOCIAL ISSUES
emerging economies, the Turkish lira is term of a coalition run government in Social acceptance is very crucial in ev-
also offering higher interest rates, which Turkey, the AK party (AKP) described by ery stage of mining. Today even in min-
has led to attracting many investors it is leader as “conservative democrats”- ing dependent economies, (i.e. Peru)
around the world. (See Figure 3) has taken charge of running the country there have been social protests and
Figure 3 Turkish Lira’s Exchange Rate to US Dollars
opposition to mining projects. In Turkey,
in the early 2000s, some environmental
groups had voiced their opposition to
the first gold mine in Bergama, owned
by Normandy (subsidiary of Newmont).
There had been a campaign of disinfor-
mation about the use of cyanide in gold
processing and exploration. However,
the Turkish mining industry responded
to this by forming new associations to
promote mining. New mining laws were
initiated, which has had a positive influ-
ence on public opinion about mining.
Half of the payments for mining opera-
tions are t used to bring services to rural
villages. Additionally, 25% of the rev-
enues from mining operations are uti-
lized for infrastructure development of
the region.
PERMITTING of forms and applications in Turkey. De- royalty paid by operations will be used
The permitting process has been a strug- spite the recent positive changes, there for bringing in services in rural villages,
gle for mining companies in various is still a need for more amendments to where 25% of license payments will be
countries. Mineral prices could change reduce bureaucracy and expedite the used for infrastructure.
significantly in the future. Consequently, permitting process.
delays in the permitting phase could re- Availability of labor/skill could be prob-
sult in huge profit losses for investors. In INFRASTRUCTURE AND WORKFORCE lematic in any country. This issue arises in
some situations, the mine is unable to Mining has it is uniqueness when it Africa, Asia, and even in Australia. Turkey
get the permits required to move ahead. comes to infrastructure. It is common has a young population, with an average
Before the 2004 mining law was initi- to have mining companies providing age of fewer than 30 with an available
ated, a new mining project needed to the basic infrastructure like water, elec- skilled workforce. Furthermore, Turkey
have permission from over 28 different tricity, roads, and phone lines to the lo- has one of the longest working hours
departments and ministries. The law in cation. Another factor that is critical for per week-more than 50 hours/week, in
2004 facilitated the permitting process the companies is skilled workforce. Due Europe. Turkey is also a country with a
from the endless bureaucratic stream to the mining law in 2010, half of the central location and access to sea trans-
port facilities.
INVESTOR FRIENDLY POLICIES

Nationalization and hostility against for-
eign investors could be faced in many
countries. The Turkish government has
encouraged foreign investors and has
also been inviting foreign companies in
the last decade to bring in capital. For
instance, the Turkish government has
established a webpage “Invest in Turkey”,
to inform, notify, and update potential
investors. As mentioned above, the re-
cent reforms have reduced the tradition-
al bureaucracy load. One example of this
is the establishment of a foreign com-
pany within 6 days. Moreover, there are
incentives such as tax reduction, value
added tax (VAT) exemption, and customs
duty exemption for different industries,
including mining.
Figure 4 Summary of Turkey’s ranking among 183 countries “Ease of Doing Business” (source: doingbusiness.org)
TAX LIABILITY of investment incentive schemes: Gen- nomic and political stability have been
Investors need to know how much they eral, Regional, Large-Scale and Strategic successful enough to bring new inves-
have to pay in taxes in advance. Many investment incentive schemes. In the tors in the last decade. However, there
countries are imposing extra taxes for regional investment incentive the state is room for improvement in some areas.
foreign investors. Recent regulations in is divided into six groups. Region 6, the For instance, construction permits still
the Turkish mining industry include dif- least industrialized region of all due to require a long sequence of procedures
ferent royalty shares for different mineral its rural nature, is given the most prior- and is very costly compared to the Orga-
groups. As of 2012, Turkey will have the ity, i.e, there is substantial governmental nization for Economic Cooperation and
new investment incentive system. The financial support and aid. Right behind Development OECD average. As well,
key point in this incentive system is lo- it is the mining industry prioritized the there is a need for secure regulations to
cal and foreign investors have equal most, where regardless of the invest- protect the investors. According to the
rights and access. There are four types ment region mining will be supported as World Bank, Turkey ranks 71th among
if the mining activity is in group 5 region. 183 countries in “ease of doing business”.
In addition to regional incentive system, Figure 4 shows the summary of it is rank-
large scale investments in selected 12 ing for 2011 and 2012. For Turkey to be
areas of investment are be supported. in the top 10 largest economies by 2023
Mining investments over 50 million Liras there is an urgent need for facilitating
(~28 million USD) will be supported. The the business challenges caused by bu-
support includes VAT and customs duty reaucracy.
exemption for at least 7 years. With the
recent corporate income tax amend-
ment, the tax burden was reduced from
33 to 20 percent.
CONTACTS
CONCLUSION
Sean Dessureault1, M. Mustafa Kahraman2
Turkey has come a long way in terms 1) Assoc. Prof., The University of Arizona, Depart-
of attracting foreign investment As of ment of Mining and Geological Engineering
2012, there are over 30 gold explora- E-mail: [email protected]
tion companies, operating in Turkey, and
2) The University of Arizona, Department of Mining
this number is growing. With a young
and Geological Engineering
and energetic population, Turkey has E-mail: [email protected]
an enormous potential in mining. Eco-
DRILLING
Article
Effects of Price Volatility on Mining Companies’

Financials and Ever-Increasing Importance
of Corporate Governance and Operational Excellence
Commodities’ price trend is the most
Gold Price Iron Ore Price
important factor affecting mining com- $2,000.00
$1,800.00 $200.00
panies. Not only the revenue is directly $1,600.00
$1,400.00
$180.00
$160.00
US$/ounce
$1,200.00
affected but also the costs are direct- $140.00
US$/Tonne
$1,000.00 $120.00
$800.00 $100.00
ly related to the commodity prices. $600.00
$400.00
$80.00
$60.00
$200.00
Therefore, volatility in the prices may $0.00
$40.00
$20.00
$0.00
Apr-10
Aug-08
Oct-07
Nov-09
Mar-08
Jul-11
May-07
May-12
Jun-09
Feb-11
Dec-06
Dec-11
Jan-09
Sep-10
cause dramatically drops in profit mar-
Apr-10
Aug-08
Oct-07
Nov-09
Mar-08
Jul-11
May-07
May-12
Jun-09
Feb-11
Dec-06
Dec-11
Jan-09
Sep-10
gins, even if the eventual price is not
changed. It is urgent for investors to
understand the impact of price trends Copper Price Aluminum Price
on companies’ financials. Moreover, in $12,000.00 $3,500.00

$10,000.00 $3,000.00
order to have sustainable profits, min-
US$/tonne
$8,000.00 $2,500.00
US$/tonne
$2,000.00
ing companies must invest on corporate $6,000.00
$1,500.00
$4,000.00
governance and operational excellence $2,000.00
$1,000.00
$500.00
and eliminate unnecessary bottlenecks $- $-
Apr-10
Aug-08
Oct-07
Nov-09
Mar-08
Jul-11
May-07
Jun-09
May-12
Jun-09
Jun-07
Jun-08
Jun-10
Jun-11
Jun-12
Feb-11
Dec-06
Dec-11
Dec-06
Dec-07
Dec-08
Dec-09
Dec-10
Dec-11
Jan-09
Sep-10
of workflows.
COMMODITY PRICES AND Figure 1: Gold, Copper, Aluminum, and Iron Prices 1
TRENDS
Due to global financial crisis, at the
second half of year 2008, uptrend in
commodity prices started to give way
to sharp fall. At the mid-2009, loss in
commodity prices reached 50%. The prices, higher profits are expected from tions where they are struggling to repay
precious metals, like gold and silver, are mining companies. However, due to their debts, push the companies to con-
seen as safe haven investments, there- natural hedge phenomenon, high com- tribute more to the national economies
fore, economic crisis does not have a modity price does not automatically en- with new tax policies. Governments
negative effect on their prices, and on hance the financial indicators of mining impose new duties such as super-profit
the other hand, industrial metals like companies. Countries where the mining taxes, discovery bonuses, resource rents,
nickel, aluminum experienced the big- industry constitute high portion of GDP, license fees, indigenization quotas, en-
gest losses in price. is affected from increasing commodity vironmental levies and reconstruction
prices and the local currency is appreci- tolls. As a result, high profits coming
Despite the long-term effects of the ated with appreciation of commodities. from high commodity prices are some-
global financial crisis, markets seemed In other words, when commodity prices what negated due to governmental re-
to gather strength and started to rise increase, exchange rate versus US Dollar strictions.
again, as a result of demand in develop- increases also. That’s why when trans-
ing countries like China and India and lated into local currency; the escalation Moreover, increases in commodity
the governments’ incentives2. However, in commodity prices eventually disap- prices, increasing demand, decreasing
recently Euro Crisis and uncertainty have pears. deduction limits with technological de-
started to dominate the markets, pulling velopments attract attention of other
the prices down. On the other hand, in such countries, parties; new players start to enter to the
mining sector profits constitutes one of industry. While growing interest of in-
PRICE VOLATILITY CHANGE THE the governments’ main income sources. vestors boosting the competition in this
RULES OF THE MARKET While mining companies’ profitability rapidly growing market, gap between
During the periods of high commodity rising; governments, especially in the na- supply and demand expended further.
This phenomenon drives shortages in appreciation of commodities start to of other big companies, who have huge
equipment, labor, and other key inputs close former levels with slightly higher profits in the past, decrease incredibly at
and increases their prices. By mid-2011, revenues and higher costs. these times.
the price of haul truck tires alone had
tripled, touching $100,000 on the spot When we look at the financial statements CORPORATE GOVERNANCE, OP-
market3. Energy and power prices are of leader companies in the industry, we ERATIONAL EXCELLENCE AND
also on the rise – Brent crude prices rose can see the positive effect of the high KEEPING THE PROFIT
45%year-over-year as of June 20114. On commodity prices. While the prices surg- To exacerbate the situation, global po-
the other hand, bumper profits that high ing up all the time, the profit margins of litical uncertainty and ongoing currency
commodity prices brought have fuelled these companies increase considerably. volatility are causing significant and un-
labor unrest, driving unions to demand For example, Xstrata’s profit margins in- predictable foreign exchange gyrations,
higher wages. All these occurrences led creased from 2.91% to 16.89% in 20105. making it exceptionally difficult to con-
to rapid escalation of costs. Likewise, Rio Tinto increased its profit- tain costs in dollar terms.
ability from 11.65% to 25.81%. After a
In this unstable environment where huge increase, volatile market prices fell In this highly volatile, unpredictable
prices fluctuating all the time, a lot of again, especially in 2011, and this led to environment, operational excellence
companies have failed to get costs under profit margins of the mining companies is becoming extremely important.
control and capital costs have reached to fall more and more. For instance, Rio Without understanding cost drivers
unsustainable levels. As a result of all Tinto’s profit margin fell from 25.81% to that increase loses in processes, it is in-
these factors, rising profit margins with 9.62% in 20116. Similarly, Profit margins evitable for capital costs to reach
M a g a z i n e
“The Brand of Turkish Mining”

Figure 2: Sample Corporate Governance Tools
unsustainable levels. Corporate strate- Especially, in Turkey mining sector, fam- top 10 trends mining companies may
gies can achieve its purposes in the con- ily businesses are the backbone of the face in the coming year.
dition of productive and effective pro- production; they are strong, successful 3- Bloomberg, June 29, 2011. “Mining
cesses. With the help of improved work- and delighted with high profits, until Truck Tires Pricier Than Porsches, Miami
flows and standardization in processes, now. Considering the rapid interest of Condominiums”, by Elisabeth Behrmann.
it is easier to increase productivity and the international capital in Turkey Min- Accessed at www.bloomberg.com/
maintain corporate sustainability. There- ing Sector and mining companies; lo- news/2011-06-29/mining-truck-tires-
fore, it is essential to analyze details re- cal businesses have to take immediate pricierthan-porsches-miami-condomin-
lated to processes and their outcomes to measures. Increasing globalization and iums.html
assess where the problems are occurring sector growth will bring new challenges 4- Reuters, June 8, 2011. “Analysis: Rising
and what are the effects on your organi- to the family businesses. In order to man- mining costs may trigger sector correc-
zation’s performance. In order to survive age growth, keep the profits up, and be tion”, by Clara Ferreira-Marques and Sue
in such an unstable market, companies tough in the competition; family busi- Thomas. Accessed at www.reuters.com/
need to redesign their business pro- nesses have to take immediate steps article/2011/06/08/us-miningcosts-
cesses and in order to implement these towards corporate governance and op- idUSTRE75711520110608
new processes, organizational structures erational excellence otherwise they will 5- Xstrata Financial Reports and Results.
should be reconstituted. Trough success- be vulnerable in such uncertain environ- Accessed at www.xstrata.com/investors/
ful transformation methods and corpo- ment. financial- reportsandresults/2012/
rate sustainability, quality infrastructure 6- Rio Tinto Financial Results. Accessed at
and effective organizational structures To sum up, as these global forces con- www.riotinto.com/shareholders/219_fi-
will be continuous. Today’s economy verge, mining executives must look nancial_ results.asp
shows that, in this high complexity, beyond the traditional scenarios they
growing organizations must constantly have used in their planning. They should
evaluate their processes and they should incorporate even highly-unlikely occur-
be aware of the fact that professional rences into their risk planning and they CONTACTS
process optimization and strong risk must always be ready for every unantici-
Alper Günaydın1, Mine Yılmaz İlkdoğan2
management are the key requirements pated surprise. 1) Manager, Deloitte Consultancy
of the competitive advantage. However, E-mail: agunaydı[email protected]
a lot of companies in the sector are not REFERANCES
2) Senior Consultant, Deloitte Consultancy
capable of planning for the unforesee- 1- London Metal Exchange, LME
able. 2- Deloitte, Tracking the Trends 2012, The
M agazin e
“The Brand of
Turkish Mining”
Online Bookstore
Short Courses & Seminars
Bulletin of Mineral
Rights & Concessions
English Edition of
Madencilik Türkiye
To be a part of it, please reach us...

[email protected]
Advertisers index
Aldridge Minerals Inc. Als Lab. CWP EBY International Summit
Fe-Ni Mining Gemcom Günhan Ark KSB Turkey
Mediterranean Mediterranean Steam

Legisterra Consulting Resoruces Ltd. Coal Markets Conference Metrans
Pozitif Drilling Sandvik SFS Teksomak SGS
Tetra Tech Tüprag Metal Mining

Mining Turkey Magazine Sayi3 LQ PDF

Uploaded by

Copyright:

Available Formats

Mining Turkey Magazine Sayi3 LQ PDF

Uploaded by

Document Information

Original Title

Copyright

Available Formats

Share this document

Share or Embed Document

Sharing Options

Did you find this document useful?

Is this content inappropriate?

Copyright:

Available Formats

Mining Turkey Magazine Sayi3 LQ PDF

Uploaded by

Copyright:

Available Formats

What are the main topics covered in the magazine?

What are the main topics covered in the magazine?

What organizations publish and distribute the magazine?

What organizations publish and distribute the magazine?

by

Mining & Earth Sciences Magazine

Aldridge Minerals Inc. is a near de- of Turkey, approximately 220 kilome-

From Exploration to Production

Subscribe for new Issue alerts and more!

Join the movement towards The Future of Mining.

Orhan Yılmaz: We Are the Real

Park Holding’s 2011

Magnesite AŞ Plan to Increase

Orhan who told that techno-

Global Yatırım Holding Plan

Alacer announced an update on explora-

Exploration Goes On at Cevizlidere

For more information visit: www.madencilik-turkiye.com/eng/bulletin.php or e-mail to: [email protected]

"Bulletin of Mining Concessions"

for finance/partners to their mining concessions or projects since October 2010.

600 MW Thermal Power

The fair which is arranged annually by

A record number of participants and visi-

Over 10 years experience in Turkey

ALS Izmir lab capabilities include:

Contact us to discuss cost-effective solutions:

Mining Companies in Top 1000

898 … Eti Soda Üretim Paz. 20.507.566,06 … …

Çayeli Bakır İşletmeleri (subsidiary of In- 912 … Eti Bakır AŞ 20.052.954,23 … …

Turkey’s Mining Products

NATURAL STONES TOOK FIRST 12 Israel 156.023.930 26.263.442 182.805.825 30.208.523 17 15

PLACE 13 Sweden 103.205.606 31.876.745 65.264.036 29.714.167 -37 -7

23 Bulgaria 92.081.091 44.618.288 66.442.358 16.323.878 -28 -63

30 Mexico 5.017.179 5.301.408 10.521.883 9.762.699 110 84

January - June 2011 January - June 2011 Change (%)

Amount (Kg) Revenue ($) Amount (Kg) Revenue ($) Kg $

Salt 258.399.813 20.501.578 26.088.310 3.726.275 -90 -82

Iron Pyrites 0 0 22.150 3.578 100 100

Sulfur 23.208.793 4.020.322 21.536.723 4.357.565 -7 8

Grafite 92.464 91.089 366.220 475.028 296 421

Quartz, Quartzite 169.219.506 19.745.816 176.452.564 21.678.342 4 10

Bentonite 154.629.787 18.072.352 141.511.576 16.643.379 -8 -8

Other Clays 6.845.513 2.057.249 8.494.613 1.920.812 24 -7

Calcium Phosphate 614.422 161.855 329.193 56.230 -46 -65

Barite, Whitherite 70.752.776 8.383.764 52.080.456 7.302.210 -26 -13

Pumice 68.549.234 4.725.880 44.192.964 3.471.821 -36 -27

Grindstone & etc. 14.382.423 905.839 21.061.267 1.894.638 46 109

Dolomite 11.891.683 1.308.537 13.394.392 1.445.865 13 10

Magnesite 149.752.659 49.054.440 207.116.937 43.896.372 38 -11

Gypsum 377.796.952 31.606.223 418.795.682 34.649.356 11 10

Mica 415.125 136.369 408.045 136.041 -2 0

Natural Steatite, Talk 1.272.610 610.401 989.918 427.357 -22 -30

Natural Cryolite ve Siolite 2.012.968 370.926 316.000 61.823 -84 -83

Natural Borats & Concentrates 244.972.636 78.583.490 269.202.620 85.796.837 10 9

Feldspars 2.091.012.900 70.393.720 2.145.549.989 70.365.352 3 0

Perlite 171.808.680 9.064.716 208.861.215 11.076.073 22 22

Sepiolite 514 1.660 3.002 4.102 484 147

Celestine 3.000 1.032 10.001 3.735 233 262

Other Industrial Minerals 231.880.348 18.200.077 107.264.784 8.851.150 -54 -51