Gold Miners Association Chairman Ümit Akdur, speaking to the Anatolia news agency, discussed the plight of two gold mining firms in Turkey, stating that they had paid TL 132 million in taxes for 2009 for the gold they mined, “In other words, out of the 15 tons of gold produced yearly in Turkey, 2.5 tons are paid to the government in the form of taxes.”
Regarding the potential of Turkey’s gold mining sector, Akdur stated that Turkey had a total potential of $240 billion, but that this number could increase to $1 trillion with value-added goods. In terms of tonnage, this potential represents 6,500 tons. Out of this figure, miners know where 710 tons are located, but to find the rest, much more investment is needed, Akdur said. He added that only 15 tons of gold were produced in 2009, while 200 tons -- worth $7 billion -- were imported. Some $10 billion in capital is needed to discover the rest of the gold hidden under Turkish soil, according to Akdur, who stressed the need to make these investments more attractive for venture capitalists. Stating that on average $5 billion per year is spent on gold exploration in countries similar to Turkey, Akdur highlighted that only $50 million is spent in Turkey per year. “If this figure were to increase to $500 million, Turkey would be in a prominent position in the global economy in terms of gold production.”
Akdur stated that there are 30 firms in the exploration and production enterprises in the Turkish market and that roughly half of them were founded with foreign capital. Adding that it takes five to 10 years to explore for mineable gold, Akdur said, “Domestic capital doesn’t want to invest in a project this long, so they mostly invest in other areas of mining where the returns are quicker.” Out of the 11,000 mining licenses, only 100 are for gold, with 60 of them belonging to firms founded with foreign capital, Akdur noted.
Akdur said that from 2001 to 2009, 62 tons of gold were produced from Turkey’s mines. Revealing that a ton of gold roughly corresponds to TL 55 million in today’s market, Akdur said: “In 2009 the 15 tons mined were valued at roughly $550 million. The indirect contribution to the national income was about $2.5 billion. For 2009, it is expected that the top 50 institutional taxpayers will include two gold mining firms.”
