As the Turkish mining sector has privatised over the last fifteen years, investors have been attracted to new opportunities, particularly in the gold mining sector.
Despite Turkey hitting the news headlines recently on account of a series of terrorist attacks and the recent coup attempt, a range of foreign investment incentives implemented in recent years has made Turkey one of the prime ‘frontier’ mining destinations in Europe.
Mining in Turkey has historically been an industry that has struggled to attract large volumes of foreign direct investment on account of a notoriously difficult operating environment and an overarching state presence within the sector. Indeed, in 2000, 85% of mining operations were controlled by the state. However, in the last fifteen years, the sector has seen significant development and privatisation since. As of 2014 only 10-15% of operations belonged to public bodies such as Turkish Coal Enterprises (TKI), ETI Maden and Turkish Hardcoal Enterprises (TTK).
President Recep Tayyib Erdogan, who has pledged to transform the country into one of the leading global economies by 2023, used his long tenure as Prime Minister and head of the ruling Justice and Development Party (AKP) to initiate steps to open up the mining sector and to attract new international investors.
The momentum is clear, and while there are clear security challenges for investors to consider, Turkey is set to become one of Europe’s best prospects for exploration for a range of metals and minerals.
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For further information, please contact Harry Floyd, Partner, Mining on +44 (0)20 7466 1305 or email firstname.lastname@example.org