Smelting furnace in a TVA chemical plant in the Muscle Shoals area, Alabama (the United States Library of Congress)
Keywords: Mining, Metal production unit or smelter, Refinery, Metal, Power Plant, Mining
Regulations, Industrial Policy, Current Account Deficit, Balance of Payments.
Authors: Turgut A., Alan M. CLEGG, Dr. Zafer TOPER, Pr. Eng.
AFRASIA Mining, Energy Consultancy, and Engineering A.Ş., Ankara, Turkey
Acknowledging that my research sparked the idea of writing this article, generating the initial version, and overseeing the modifications are important. Mr. Alan Clegg served as the advisor, while Dr. Toper and his colleagues examined TUIK data and constructed the tables to provide the results substantiating the assertion in this work. The collaboration was immense. Although the paper is old, it is valuable for Turkey's mining industry. There have been no subsequent alterations in the sector, and no solution has been implemented.
Executive Summary
This report examines Turkey's mining and metal industries, particular industry structure, the regulatory environment, and the opportunities from smelter production and refinery investors' point of view. In addition, it looks at the market structuring, regulatory, and policy work in Indonesia concerning the same sector so that the reader can relate them to the business and regulatory environment in Turkey.
This report has been produced from publicly available information sources. Care has been taken to check the source's reliability and verify the accuracy of all the information in this report. The facts contained in this report are subject to change.
Turkey has plans to continue achieving significant economic growth and expansion at rates above 5% p.a. continually up to 2023 and beyond. Meeting the growth targets will require a continuing and rapidly increasing demand for infrastructure commodities to produce energy, metals and materials, water, and other vital resources.
By 2023, Turkey aims (a) to be among the top ten economies of the world in terms of GDP, today Turkey is the 16th largest economy; (b) to maintain a stable reduction in inflation and keep interest rates at single-digit; (c) to increase exports to USD 500 billion per year; (d) to increase per capita income to USD 25 thousand; (e) to reach an annual GDP of USD 2 trillion.
This vision comes with a price tag, and industrial development, including developing and further establishing major and heavy industries within the country, such as energy generation, materials production, industrial metals production, transportation, construction and building materials, aerospace and defense, auto manufacturers, and auto parts, etc., is deemed essential.
In comparison, industrial development and a particular range of policy changes have been essential in the economic growth of countries like China, the Republic of Korea (Korea), Taiwan Province of China (Taiwan), and most recently, Indonesia. (KNIIVILÄ, Matleena 2007) Turkey has similar strategies in development.
Currently, an approximately beneficiated USD 4.4 billion negative impact on the Balance of Payments annually is created in Turkey by exporting unbeneficiated ores, solid or liquid concentrates, and even reexportation of imported final metal or alloys products to meet the needs of Turkish businesses (TUIK Study by AFRASIA Team, 2013).
Turkey is a country that has rich underground resources and a burgeoning mining industry with world-class potential yet to be commercialized. In recent months, IMIB (Istanbul Minerals and Metals Exporters' Association) stated in the news, "Turkish mining industry continues to provide added value into the Turkish economy with export success". The sector succeeded in a USD 3.3 billion export of unprocessed and unrefined mining products between January and August 2013 and increased its exports by 26.5% compared with 2012 (News Report 2013). Mining exports were made mainly to China, the US, Iraq, Belgium, and Italy, respectively, during the mentioned time frame in 2013. The Turkish mining industry's exports were USD 401 million in August 2013 alone, increasing by 17.1% compared with the same month in 2012.
Exporting unprocessed and unrefined mining products from Turkey worth USD 3.3 billion and importing processed and refined mining products into Turkey worth around USD 7.65 billion is reflected in Turkey's BoP (Balance of Payments) the CAD (Current Account Deficit) has a negative impact. If trends continue in line with the government projection of GDP growth, the deficit will grow to nearly USD 24 billion!
To reverse this, Turkey needs to build world-class Metals and ferro-metals production capability and capacity, which would generate actual sustainable industrial and economic development.
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