Çayeli Bakır İşletmeleri

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1 by R ISSN: Mining & Earth Sciences Magazine September 2013 Vol 3 Number 5 Çayeli Bakır İşletmeleri 30 Years of Success in Black Sea Latest Picture of Turkish Mining by the Leaders of the Sector Turkish Progress and Recent Trends in Chrome Beneficiation


3 R contents Mining Turkey is published biannually by Mayeb Madencilik ve Yer Bilimleri Basım Yayın Dağıtım Ltd. (Yayın Sahibi) A. Öveçler Mah Sk. Vadi Köşk Apt. No: 6/8 Çankaya / ANKARA / TURKEY Phone : +90 (312) Fax : +90 (312) Editor - International Relations (Sorumlu Yazı İşleri Müd.) O. Çağım Tuğ General Coordinator Onur Aydın Administrative Affairs Volkan Okyay Graphic Design M. Anıl Tuğ Web Technologies Bilgin B. Yılmaz Legal Adviser Av. Evrim İnal Academical Advisers Prof. C. Okay Aksoy Prof. Erol Kaya Prof. Hakan Benzer Prof. İlkay Kuşcu Assoc. Prof. Ali Sarıışık Assoc. Prof. Hakan Başarır Assoc. Prof. M. Emin Candansayar Assoc. Prof. Melih Geniş Assoc. Prof. Melih İphar Assoc. Prof. Niyazi Bilim Assoc. Prof. Nuray Demirel Assoc. Prof. Özcan Yiğit Assoc. Prof. Talip Güngör Advertising Sales Annual Subscription Enquiries Printhouse Başak Matbaacılık ve Tanıtım Hiz. Ltd. Şti. Macun Mah. Anadolu Bulv. No: 5/15 Yenimahalle - ANKARA Tel: +90 (312) Publication Type and Period (Yayının Türü ve Şekli) Worldwide (Yerel Süreli) - Biannualy (6 Aylık İngilizce) Circulation (Tiraj) 3000 Cover Photo FROM THE EDITOR TURKISH MINING SECTOR NEWS CHAIRMAN S MESSAGE OF AME-JAMIESON AŞ ÇAYELİ BAKIR İŞLETMELERİ: 30 YEARS OF SUCCESS IN BLACK SEA - Iain Anderson BARKOM GROUP DRILLING RIG & EQUIPMENT CO. LTD. LATEST PICTURE OF TURKISH MINING BY THE LEADERS OF THE SECTOR - O. Çağım Tuğ NETCAD - NETPRO/MINE METALLOGENY OF TURKEY A DIVERSE COLLISIONAL AND POST-COLLISIONAL ENVIRONMENT FOR MINERAL DEPOSITS - İlkay Kuşcu DIFFICULT AND ABRASIVE MATERIALS? LET PUTZMEISTER SOLID PUMPS SEE TO IT USAGE OF PUBLIC LANDS FOR MINING ACTIVITIES - Cemâl Dursun THE FUTURE OF MINING THIS WAY! TURKISH PROGRESS AND RECENT TRENDS IN CHROME BENEFICIATION - Barış Elçi, Alp Malazgirt PLASTIC COMPANY IN MINING BUSINESS - ŞEN PLASTİK THE POWER OF SOCIAL MEDIA IN THE MINING INDUSTRY - Sean Dessureault, M. Mustafa Kahraman GLOBAL COMMINUTION COLLABORATIVE - AN INTERNATIONAL RESEARCH TEAM - Hakan Benzer ARE CERTAIN MINERALS STILL UNDER STATE MONOPOLY? - Şebnem Önder, Ayşe Eda Biçer, Işıl Selen Denemeç XVII. INTERNATIONAL COAL PREPARATION CONGRESS İSTANBUL - Gülhan Özbayoğlu First Quantum Minerals copper producer fully-owned subsidiary Çayeli Bakır İşletmeleri (ÇBİ) celebrates its 30 th year anniversary this year. ÇBİ s annual contribution to Turkey s economy (2012) is 148 million dollars and the mine life of ÇBİ s Çayeli copper mine is Please find the interview with Managing Director of ÇBİ, Iain Anderson at page 18. September

4 Editor R Exploration Slows Down While Production and Resources Increase O. Çağım Tuğ As I pointed out in the 4 th edition of Mining Turkey, Turkish mining sector has been going through a Mining Boom. Local investors as well as the leading firms of construction and energy sector are now making significant investments in the mining sector. For foreign investors, on the other hand, particularly in parallel with the downward trend of the gold prices have shown, projects that would potentially turn up in Turkey with lower costs have become more interesting rather than the high-cost production projects carried out in the various locations around the globe. The leading foreign mining firms which are presently engaged in production in our country, Eldorado Gold, Alacer Gold, First Quantum and Sibelco are likely to be followed, in a couple of years, by other foreign investors such as Alamos Gold, Aldridge Minerals and Ariana Resources. Nevertheless, not only the several administrative problems which appeared subsequent to the amendment of the Mining Law in 2010 and the relevant regulations and which we believe would be solved in the short run, but also the decision that permits regarding the use of any stateowned real estate must be subject to the Prime Minister s approval upon the Ministerial Decree of 16 June 2012 have virtually created a barrier against the sector which had been progressing in a motivated spirit. When suddenly the permit procedures have begun to take longer and longer, exploration companies business have slowed down. Exploration had already been suffering due to the budget cuts made by the firms as the first resort in response to the world-wide economic distress, and it was struck, once more, as a result of the permits which could not be taken in due time or taken only after dreadfully prolonged processes. While a number of firms managed to maintain their explorations smoothly by virtue of submitting early applications and thanks to the conditions of the land explored, other firms had to cancel their drilling schedules. These circumstances, after one and a half year, have cast a serious effect on exploration, drilling and equipment sectors. Despite the positive responses received upon the communications made to the decision-making authorities, a conclusive result has yet to be achieved. The first suggestion to solve this problem would be leaving the mining sector out of the decree s scope. A summary of the latest developments in our country could be found in our article titled Latest Picture of Turkish Mining by the Leaders of the Sector including statements of significant figures from the sector. It is OK to say that the circumstances which have discontented the exploration sector have almost had zero effect on production. No factors other than the sudden drop in the gold prices in April caused an impact on production figures. The production increase planned in the Kışladağ Gold Mine owned by Tüprag Metal Mining, a subsidiary of Eldorado Gold which is one of the leading producers in Turkey, had to be postponed on account of the downward trend of the gold prices. On the other hand, Alacer Gold s subsidiary Anagold Mining announced a resource increase regarding Çöpler Gold Mine. Local gold producer Koza Gold is presently carrying out production in 4 different mines. In addition to these companies, Soma Holding - Turkey s prime coal producer in the private sector - has experienced major developments as in the cases of Eczacıbaşı Esan in lead-copper production as well as other merchandises, Meta Nikel and VTG Holding in nickel production field, Centerra Gold, Chesser Resources and Stratex in gold sector. Upon the achievements by 100% state-owned enterprise Eti Mining, in boron production and market, Turkey as the host of the 70% of boron reserves, has become the leader in the boron market. Within the tax champions list, there are 10 mining firms in the top 100. Despite the advancements in our raw material exportation (particularly as part of the effect cast by natural stone and marble sector), the prevailing high levels of importation (prominently gold and copper) indicate that Turkey still needs a better domestic production. In the light of the development of the past six months, one can easily say that Turkey has been keeping up the good work in becoming a country of mining. According to the statements by the authorities, the government plans to increase the contribution of the sector to the economy which is 1.5% of GDP, which falls below the world average of 2%. In the wake of these statements, we hope the government will promptly find the due solutions to increase the sector s effect on the GDP and thus, another complication against making Turkey a leading mining country will be eliminated. R Subscribe for new Issue alerts and more! 2 September 2013


6 News Canadian Mining Roundtable Meeting The Canadian Consulate in İstanbul organized a Mining Roundtable lunch meeting at the Sheraton Hotel in Ankara for the Canadian companies active in the Turkish mining sector. The main objective of the function was to discuss with Canadian companies the highlights of the Canadian Government s approach to Corporate Social Responsibility (CSR) issue and to review the CSR activities undertaken by the Canadian companies in terms of environmental preservation and community services in Turkey. The discussions were also aimed at reviewing the challenges faced by Canadian firms in Turkey and ways to address them. The meeting also included discussions of pre-requisites 4 September 2013 for sustainable mining in the Turkish environment. Senior officials from Canadian mine exploration and operation companies attended the meeting and they expressed their satisfaction with the exchange of views. In his welcoming remarks, John Holmes, the Ambassador of Canada, who chaired the meeting mentioned that environmental sustainability as well as healthy community relations based on mutual trust are essential elements which the companies should make priority. Mr. Shawn Steil, the Consul of Canada in İstanbul, made an overview of the CSR 12-Billion-Dollar Project Delayed The United Arab Emirates state-owned energy company TAQA has decided to delay its 12-billion-dollar investment in Afşin - Elbistan. In his statement, the Minister of Energy and Natural Resources Taner Yıldız indicated that the negotiations had reached a certain level up until the decision of postponement and that they hope the decision is not driven by political motives. Yıldız suggested that the developments in Egypt and Syria show that they have come to a point to make a choice in terms of energy investments. He also noted that they have already initiated talks with other countries to take on the scheme. In January 2013 Turkey and TAQA had signed a contract for establishing a- 8000MW power plant upon an investment of 12 billion dollar in Afşin - Elbistan. The plan was, by means of this guidelines of the Canadian Government and the incentives and assistance available for CSR programs both in Canada and overseas. The company representatives who participated in the event shared their experience in implementing their CSR projects with reference to the specific regions and communities where they operate. Discussions also covered the elements of successful CSR programs to ensure harmonious relationship with host communities. The emphasis was made on the mutual trust, transparency and utmost respect to the environment and the livelihood of the communities they interact with. It was agreed that satisfactory CSR programs are indispensable elements for sustainable mining activity. Successful CSR track record of the Canadian companies and community acceptance for them were cited as the proof of this concept. Akın Kösetorunu, Trade Commissioner at the Consulate of Canada in İstanbul stated that such gatherings are beneficial and discussions in these functions very productive. Dedeman Madencilik is Looking for New Partners Dedeman Group announced its growth strategies in one of the important areas of the company s business, mining, as new investments, public offering and acquiring partners for minority stake. Levent Gökmen from Ekonomist reports, Dedeman group, one of the leading companies in the country s mining sector, is planning new investments in lead-zinc field in Balya, Balıkesir and chromium field in Adana. In addition, a manager of the Group, Rıfat Dedeman stated that upon completion of the said investments in three years, they plan to launch Dedeman Madencilik public offerings at domestic and outside markets, adding that they are open to strategic partnerships that can contribute in know-how for reaching the mining company s growth targets, with the condition of holding minority stakes. In January of this year, Murat Dedeman, CEO of the 66-year-old company, had announced their target of 130 million dollar of turnover for 2013, and 100 million dollar of mining and 20 million dollar of tourism investments, totalling to 120 million dollars in investment. investment, to generate 45 billion kwh of energy annually in exchange for 85 million tonnes of coal, each year. By virtue of this contract signed between the governments, the aim was to build new power plants in sites B, C, D, E and G within the basin, and to integrate coal reserves into the economy upon ensuring their operation.

7 Çöllolar is Restored to Operation Çöllolar Coalfield, a part of Afşin - Elbistan B Thermal Power Plant, is restarted to operate 25 months after two accidents. Eleven mine workers died as a result of two landslides at the site on 6 th and 11 th of February, due to very large masses of earth moved. Şeref Göksu, Operations Manager of Çöllolar Coalfield, has informed Cihan News Agency that the Electricity Generation Company (EÜAŞ) has authorized stripping of a total of 33 million cubic meters of earth so as to stabilize the damaged slopes and added that they have commenced work with this scheme. Highlighting that the work will absolutely not involve lignite production, Göksu stated the purpose as restoring the field safety. He also claimed that lignite production is believed to resume, with the authorization by EÜAŞ, after safety of the slopes and the mine is reestablished. Göksu noted that following the accidents in 2011, operations were suspended and the staff was sent on leave, and he added that required number of workers will be called back to work and there are no plans for recruitment for the time being. Ariana Resouces Announced the EIA for Kızıltepe Ariana Resources plc, the gold exploration and development company focused on Turkey, announced the submission of its final Environmental Impact Assessment (EIA) report for the Kızıltepe gold-silver project to the Ministry of Environment and Urban Planning (MEUP), via its joint venture company in Turkey, Zenit Madencilik San. ve Tic. AS, in September. Turkish Mining Committee to Ring the Opening Gong of London Stock Exchange on September 25 th Turkey Mining Finance Investment Summit organized by EBY International Summits will take place in London on 26 th and 27 th of September, With press sponsorship by Madencilik Türkiye and Mining Turkey, the most recently announced highlight of the summit supported by Turkish Miners Association is ringing the opening gong of London Stock Exchange on September 25 th by Turkish Mining Committee. Erdemir Receives 1.5 Billion Lira Incentive for Hasançelebi Erdemir Madencilik announced that it received an investment incentive certificate of 1.5 billion Turkish lira for iron ore enrichment and pelletization works that have 3 million tonnes capacity, planned to be constructed in Malatya, 700 km southeast of Ankara. Stated to be a completely new enterprise, the investment in question, received with the investment incentive certificate with date and number , is a total of 1 billion 569 million lira and the breakdown is revealed as; 208 million 339 thousand Ariana expects that the MEUP will review the submitted documentation ahead of ministerial approval which is anticipated during Q Once Ariana has received its environmental positive certification it will be able to proceed with final permitting for construction, targeted by the end of Q In parallel, the company and its JV partners are negotiating finance for the construction of the mine and of expected commissioning of 362 dollar (385,427,819 lira) for imported machinery and hardware, 10 million 493 thousand 304 lira for locally manufactured machinery and hardware, 582 million 332 thousand lira for building construction, and 590 million 746 thousand 877 lira for other expenses. Supporting components of the investment are; vat exemption, vat reimbursement, customs duty waiver, interest rate waiver, support for social security employer portion (7 years) the mine, which is currently scheduled for H Michael de Villiers, Chairman of Ariana Resources commented: The submission of our EIA marks a further crucial step towards Ariana and its partners commencing construction of our initial mine at the Red Rabbit Gold Project, before expected initial commercial production in H In his statement to Madencilik Türkiye, Yaşar Şuşek, CEO of EBY International Summits, pointed out that this summit organized with the goal of promoting mining in Turkey, will be a pioneer in the sector. Şuşek claimed that Turkey s mining companies will meet with the global capital for the first time and at the heart of the world s financial markets; London. He suggested that opening London Stock Exchange by Turkish Mining Committee a day before the summit is a sign of importance of Turkey s mining for London s financial market. Communicate with Mining Turkey for discounted participation opportunities to the Summit that will serve as a platform to reach most needed venture capital and other funds for project development and investment. with tax reduction rates (90%, 50% Contribution to Investment). Previously disregarded Hasançelebi site on the basis of bearing low-grade ore can now be utilized with advanced technologies. Detected reserve at the site is calculated as approximately 1 billion tonnes and the grade is on average 19.49% (Fe 3 O 4 ). The facility is expected to produce 3 million tonnes of pellet with a mine life of 64 years. September

8 AME Jamieson Management Consultancy and Engineering AŞ Joint Venture Announced Jamieson Group of Australia and Afrasia Mining and Energy AŞ have joined forces to create a new joint venture, AME Jamieson Management Consultancy and Engineering AŞ in Ankara Turkey. The new company, AME Jamieson (AMEJ) is to offer a complete end-to-end services solutions for mining industry in Turkey and the surrounding region. This joint venture was designed to provide customers with a single point of access for all of their performance improvement, change management, technical and engineering services, including green field explorations to mine closures and mining operations. 6 September 2013 We are very excited at the level of the combined expertise and experience of AME Jamieson can deliver. AME Jamieson AŞ, will excel at providing strategies, methodologies, best practices, technical and operational due diligence, engineering and operational performance improvement services, training to ensure delivering practical ideas and performance driven solutions that produce measurable business benefits to the client companies as quickly as possible said David Jamieson, President of Jamieson Group and Chairman at AME Jamieson AŞ. Our Areas of Primary Focus & Value- Add will be (1) Diagnosing Risk and Opportunity (2) Articulating Performance Potential, (3) Improving the Quality of Internal Decision Making, (4) Implementing Systematic and Behavioral Change, (5) Delivering Tangible Results and Superior ROI s (6) Building Sustainable Organizational Capacity in addition to all technical and engineering services in mining said Alan Clegg, Chairman at Afrasia Mining and Energy and Vice Chairman at AME Jamieson AŞ. Immediate target market will be Turkey. AME Jamieson will also focus on markets where AME is already active in North Africa, Middle East, Eastern Europe, Balkans and Turkic Republics. Turkey s First Stainless Steel Production Facility Opened The factory in Kocaeli, which will produce stainless steel to be also used in automobiles, has initiated production upon the partnership between the South Korean Posco, world s fourth largest steel producer, Kibar Holding and Daewoo International. The factory, located in Alikahya district of Kocaeli, with its annual production capacity of 200 thousand tonnes, will provide direct employment for 400 people. The opening ceremony of the facility welcomed the Minister of Science, Industry and Technology Nihat Ergün, President of Kibar Holding s Management Board Asım Kibar, President of Posco Joon Yang Chung, President of Posco Assan TST Management Board Ali Kibar and Vice-President Dong Hee Lee on behalf of Daewoo International. In his speech during the ceremony, the Minister Nihat Ergün pointed out that the facility was Turkey s first stainless steel factory. Ergün also noted that our country s annual stainless steel consumption was around 325 thousand tonnes and almost all of this demand had been satisfied through impartation. A significant need in our country will be met thanks to this new factory he added. As he took the floor in the ceremony, the President of Posco Assan TST Management Board Ali Kibar indicated that the factory has been established with an annual production capacity of 200 thousand tonnes initially and it had commenced its operation as Turkey s first cold-rolled stainless steel producer. Kibar also noted that in the next stage, the facility s annual production capacity will reach 400 thousand tonnes and subsequently will hit 1 million tonnes. As long as the raw material demand of the facility is satisfied domestically, it will surely provide for the rise of a larger market within the mining sector. Meskan İsmet Ölmez Invests 6.5 Million Dollars in Hakkari Meskan İsmet Ölmez Madencilik owned approximately 6.5 million dollar worth zinc enrichment facility, which was built in Ulgunlar village, on the Hakkari - Çukurca highway in 1999 but started operating only in 2005, is said to be at its final stage of establishment and that the production will soon begin. According to İHA s report, the mine that has nearly 30 working construction equipment and that has provided approximately 250 employment opportunities has exported 350,000 tonnes of ores and the new establishment will not only increase employment but also regional exportation. İsmet Ölmez, the owner of Meskan İsmet Ölmez Madencilik stated that they have established an important presence in the exportation of the region with the construction of their mine and pointed out that this region has the highest emigration and the industry is not well developed due to terror in the eastern Turkey. Ölmez indicated that the region bears rich zinc and lead reserves, and that their facility, which costed 6.5 million dollars, will start production shortly. In different fields of the company, 4 types of zinc ore; Akkaya Massive Metallic Giper Carbonate Zinc, Meskan Metallic Zinc, Meskan Oxidized Zinc and Diyarbakır Metallic Zinc are produced. Geological surveys estimate the apparent zinc reserve at the company s licensed fields to be 5 million tonnes and additional drill holes are believed to increase this estimate.

9 Contract Signed for Kangal Thermal Power Plant and its Coal Site Kangal Thermal Power Plant Electricity Generation Co. whose tender was concluded in February 2013, owned by the Joint Venture Group of Konya Şeker and Trade Co. - Siyah Kalem Engineering Construction Industry and Trade Co. with a share of 51% and by Çobanyıldızı Electricity, a subsidiary of Anadolu Birlik Holding, with a share of 49%, signed its contract of 985 million dollar on 14 August The license of generation to be awarded will be valid for 49 years. Eti Maden Strives to Increase Colemanite Use in Iron and Steel Production Working towards making colemanite use in iron and steel production a common practice, Eti Maden announced joint experimental studies with Diler Demir Çelik, a subsidiary of Diler Holding. The experiments performed at Diler s production facilities together with Eti Maden staff aimed at transforming slag into a glass-like state by adding appropriate amount of colemanite to powder slag produced in ladle metallurgy during iron steel production from scrap. In case colemanite is used by scrapbased iron steel producers in Turkey, a colemanite market of 10,000-15,000 tonnes/year, and if it becomes a globally common practice an additional 200,000 tonnes/year, is estimated to emerge Main Economic Indicators Report by Directorate General of Mineral Research and Exploration (MTA) The Main Economic Indicators Report of 2012, which takes detailed stock of Turkey s mineral reserves, indicates that our country hosts 700 tonnes of gold reserves and 9 thousand 129 tonnes of established uranium reserves. According to the sectorial distribution of the GDP, mining and quarrying has grown by 21.5% in 2011 and 10.3% in The ratio of mining within the GDP has been 1.49%. The report which demonstrates the progress Turkey has made in the mining sector during the past 8 years, contains information on the minerals Turkey produced between the years 2003 and Anthracite production which was 51 million 670 thousand tonnes in 2003 reached 85 million tonnes in 2011; cement and construction raw material production which was 69 million 900 thousand tonnes in 2003 reached a total of 397 The contract signed between the Presidency of Privatization Administration (ÖİB) and Kangal Thermal Power Plant Electriciy Generation Co. regarding the sale of Kangal Thermal Power Plant and its coal site is scheduled to be announced to the public upon a ceremony to be held in Ankara on 19 August 2013 and the Minister of Finance Mehmet Şimşek, the Minister of Energy and Natural Resources Taner Yıldız, the Acting President of ÖİB Ahmet Aksu and the President of Energy Market Regulatory Authority (EPDK) Hasan Köktaş are expected to show up at the ceremony. million 284 thousand tonnes in 2011; metallic minerals production which was around 3 million 537 thousand tonnes in 2003 reached 25 million 774 thousand tonnes in 2011 and industrial raw material production which was 28 million 908 thousand tonnes in 2003 reached 83 million 178 thousand tonnes in The report revealed that the growth experienced in the construction sector in the recent years has cast an effect on the production of cement and construction raw materials. In this regard, the amount of the cement and construction raw materials produced in 2003 was 69 million 900 thousand tonnes whereas this number has reached 397 million 284 thousand tonnes in Whereas the tender of Kangal Thermal Power Plant Electricity Generation Co. had been awarded to the Joint Venture Group of Konya Şeker and Trade Co. - Siyah Kalem Engineering Construction Industry and Trade Co., the winning consortium later altered its partnership structure. The Joint Venture Group has maintained its dominant share of 51% within the new partnership structure; however the share of Siyah Kalem has declined. Çobanyıldızı Electricity, a subsidiary of Anadolu Birlik Holding, joined the consortium as the third company with a share of 49%. Turkey s other mineral reserves are as follows: Turkey has reserves of 700 tonnes gold, 4 million tonnes alunite, 203 thousand tonnes antimony, 82 million tonnes asphaltite, 29 million 646 thousand tonnes asbestos, 1 million 786 thousand tonnes copper, 35 million tonnes barite, 1 billion 641 million 381 thousand tonnes bituminous schist, 250 million 543 thousand bentonite, 87 million 375 thousand tonnes bauxite, 3 billion 660 million 300 thousand tonnes boron, 3,820 tonnes mercury, 2 million 294 thousand tonnes zinc, 122 million tonnes iron, 44 million 224 thousand dolomite, 70.5 million tonnes phosphate, 90 thousand tonnes silver, 5 billion 733 million 708 thousand tonnes rock salt, 354 thousand 362 tonnes clay, 26 million tonnes chrome, 860 thousand tonnes quartz, 626 thousand tonnes sulphur, 13.3 billion tonnes lignite, 5 billion 161 million tonnes marble, 1 billion 479 million tonnes pumice,1 billion 126 million 548 tonnes anthracite, 380 thousand tonnes thorium, 9 thousand 129 tonnes uranium. September

10 500 Largest Companies of 2012 Published Fortune, one of the leading finance magazines of the world, announced its annual list of 500 largest companies. According to the list, upon a sharp slam on the brake in our economy in 2012, the growth of GDP remained in 2.2%, and such downfalls experienced last year caused negative reflections in the balance sheets of companies. Nevertheless, the economic magnitude of the companies in Fortune s 500 has increased by 11.2% and reached 614 billion 977 million Turkish lira. In 2011 when the growth of GDP was 8.8%, the growth in the net sales of Fortune s 500 companies was 22.2%, and it has been discovered that the growth of the companies on the list in 2012 did not slow down as in the case of the country s economy. Several companies in the mining sector or dependent on the mining sector have again made it to the Fortune s 500 list and public organizations such as Turkish Coal Enterprises and Eti Mine Works stood out in the higher ranks of the list. Turkish Coal Enterprises, upon net sales of 3 billion 182 million Turkish lira in 2012, came 33 rd on the list compared to the 32 nd place it held on the list last year with 2 billion 907 million Turkish lira. Eti Mine Works, on the other hand, came 69 th on Fortune s 500 list with its net sales of 1 billion 491 million Turkish lira whereas it ranked 72 nd on the same list upon 1 billion 474 million Turkish lira. As there has been no significant variation in 8 September 2013 the ranks of both companies compared to last year, it can be inferred that they maintain a consistent line of progress. The proximate values observed in the net sales of Eti Mine Works, in the last two years indicate the prevailing maximum gain acquired upon full-capacity operation of the organization s facilities. The organization will surely climb up in the list in the coming years, upon capacity increases. Despite its one step down within the list, Turkish Coal Enterprises displayed an increase of 200 million Turkish lira in its net sales in 2012, compared to last year. It seems Turkish Coal Enterprises will set its bar higher up in the coming years, when recently discovered coal sites begin production. Turkish Hard Coal Enterprises which was unable to make it to the list last year, however came 347 th this year, completed the year 2012 taking a financial bath due to 529 million 347 thousand Turkish lira of expenditure compared to its net sales of 305 million 199 thousand Turkish lira. Park Electricity Generation Mining Industry, İston İstanbul Concrete Elements and Ready Mixed Concrete Corporation and Eti Krom Inc. have also made it to the list of 500 largest companies this year, although they failed to do so last year, just like Turkish Hard Coal Enterprises. Fortune s 500 hosted 21 cement production companies and no significant variations were observed in their ranks. Söğütsen Ceramic and Seranit Granite Ceramic stood out upon their advancement in the list, followed by Eti Copper by virtue of its stride of 60 places. Although Anadolu Glass Industry and Trakya Glass Industry experienced a downfall in their profit volume ratios; they ranked higher on the list compared to that of The aggregate net sales of the 33 companies listed below amounts to 19 billion 156 million Turkish lira which correspond to the 3.1% of the net sales of all the companies on Fortune s 500. There are also (iron-steel industry, etc.) companies which are not cited in the list below which is cut out from Fortune s 500, however operates in the mining sector although indirectly. When we add such companies to the list, still a share of 10% within all of the net sales cannot be reached, which reminds us the importance of mining in the development of a country, as in the case of developed countries. The power a developed country s economy of is vested in the listing of that country s mining companies on the first 500 companies in higher numbers and upon higher earnings. 900 Million Dollar Investment to Soma Hidro-Gen Enerji, a subsidiary within Kolin İnşaat, made a license application for the thermal power plant they are planning to build in Soma - Deniş coal field, for which they were the preferred bidder in royalty tender. Hidro-Gen Enerji had the highest bid among 15 companies in the August 2012 tender and was the preferred bidder. The company is planning to invest 900 million dollar to the region by building a 150 x 3 MW thermal power plant. The company s investment will be 25% sourced from equity capital and 75% from external financing to obtain an annual 3 billion 942 million KW gross, 3 billion 150 million KW net electricity production by the thermal power plant. The coal field in Soma - Deniş, license no. İR:4168, that will feed the power plant is stated to bear 152 million tonnes of coal reserve and the calorific value of the coal in the field is said to vary in the 1,200-2,000 kcal/kg range. Hidro-Gen applied to Energy Market Regulatory Authority (EPDK) for license and also took the required steps for Environmental Impact Analysis Report. They are planning to use circulating fluidized bed type boiler in the thermal power plant and the plant will comprise three circulating fluidized bed type boilers, three electrostatic precipitators, fans, one chimney, desulfurization system, switchyard, steam boiler, coal storage area, coal feeding systems, fly ash and bottom ash silos, cooling tower, one steam turbine and a generator. According to the contract, the company is required to pay 4.69 krş/kwh royalty to Turkish Coal Enterprises and complete the construction of the plant within 6 years. Power plant is expected to provide 900 employment in the construction phase and 250 in the operation phase.

11 Pilot Gold Q Highlights Pilot Gold Inc. reported its financial results for the second quarter ended June 30, 2013, and provides an update on activities highlighted by continued strong gold and silver drill results at TV Tower s KCD target, the launch of drilling at TV Tower s oxide gold Kayali target, and the resumption of drilling at Kinsley Mountain, Nevada. We believe the quality of our projects, our proven team and healthy treasury are strong differentiators in today s market, and position Pilot Gold as a standout in the sector, stated Matt Lennox-King, President and CEO, Pilot Gold. We will continue to build on our success in the second half of 2013, with significant exploration drilling of an additional 29,000 metres at our priority projects, and expect to meet key resource and permitting milestones by year end. Eurasian Minerals Announces Option Agreement to Sell the Akarca Gold-Silver Property Eurasian Minerals Inc. (EMX) announced the execution of an option agreement to sell the Akarca property in northwest Turkey for a combination of cash payments, gold bullion, work commitments, and a royalty interest, in June The agreement gives Çolakoglu Ticari Yatırım AŞ, a privately owned Turkish company, the option to acquire EMX s 100% owned subsidiary, AES Madencilik A.S. ( AES Turkey ), a Aldridge Completes its Fully Owned Yenipazar Project s EIA Report Aldridge Minerals Inc. announced that it has completed the Environmental Impact Assessment Report ( EIA Report ) for its Yenipazar Project in central Turkey. The Company has submitted the EIA Report to the Ministry of the Environment and Urbanization in Turkey, initiating the final stage of the EIA approval process. Aldridge earlier successfully completed an initial application defining the scope of the proposed project as well as a public consultation process. The completion of the EIA Report, which is based on over two years of baseline studies, fieldwork, and analysis by numerous consultants and the Aldridge team, represents a significant milestone in the development of the Yenipazar Project. Following receipt of the EIA permit, Aldridge will proceed to apply for construction, operating and other required permits. In June Aldridges announced the exercise of its option to earn a 100% working interest in the company s flagship Yenipazar Property in central Turkey. Aldridge completed the earn-in by delivering the Yenipazar Feasibility Study to Alacer Gold Corp. Alacer retains a 6% net profit interest in the Yenipazar Property until such time as operational revenues reach the amount of 165 million dollars. When revenues exceed this threshold amount, the NPI will increase to 10%. Çöpler M+I Resource Increases to 8.5 Million Ounces of Gold Alacer Gold Corp. announced an updated mineral resource estimate for its Çöpler gold-silver-copper deposit in Turkey, in June The updated Çöpler resource estimate has resulted in measured and indicated ( M+I ) resources increasing to million tonnes at a grade of 1.4 grams per tonne gold, containing a total of 8.5 million ounces (inclusive of reserves) as at June 30, Alacer announced also its second quarter production at Çöpler. Mr. David Turkish corporation that controls the Akarca property. EMX looks forward to working with Çolakoglu to further advance the Akarca project towards resource delineation while exploring for new discoveries on the property. The Akarca project consists of six separate epithermal gold-silver mineralized zones occurring within a district-scale area. Gold and silver mineralization occurs as both structurally focused vein-style, as well as disseminated-style mineralization in silicified zones. EMX announced its second quarter 2013 results in August, which are available on SEDAR at on the U.S. Securities and Exchange Commission s website at gov and on Eurasian s website at www. eurasianminerals.com. Quinlivan, President and CEO stated, Costs were 395 dollars per ounce. The Our flagship Çöpler Mine achieved balance sheet remains strong, finishing record quarterly gold production of the quarter with 268 million dollars 68,195 ounces in Q2 2013, which is in cash, including 50 million dollars 10,395 ounces or 18% more than the in Australia. The current sale process previous record. In this challenging for our Australian assets is ongoing gold price environment, Çöpler and in accordance with international provided strong cash flow of 41 million accounting standards we are dollars, before taking into account reporting these assets as Discontinued approximately 14 million dollars in Operations. We are continuing to one time capital expenses for SART, reduce costs across our business as clay sizer and the agglomerator during well as evaluating how best to optimize the quarter. Çöpler s average Total Cash gold production going forward. September

12 Aksa Wins the Karlıova Coal Field Tender Aksa Enerji AŞ won the management rights to 3,167 hectares of 88,662,000 lignite coal reserve bearing field in Karlıova, Bingöl, that is owned by Turkish Coal Enterprises (TKİ). Aksa Enerji will establish a minimum 150 MW electric power plant in the field specified in the tender and produce energy using the extracted coal. According to specifications of the tender, the company will complete investments and start to operate in the first 6 years after Eti Maden Overtakes Global Market, Passing Rio Tinto Eti Maden overtook US based Rio Tinto that had been the captain of the industry until recently, by increasing production of boron products and exporting 16 boron end products to 84 countries. As Eti Maden gradually strengthened its presence in the global market in the last couple of years, Rio Tinto s market share receded to 23% by 2012 while Eti Maden s reached 46%. Orhan Yılmaz, general manager of Eti Mine Works that almost doubled the market share of its competitor, 10 September 2013 reminded that the mining giant Rio Tinto owned 40% of the global boron market and stated that they increased their share against Rio Tinto by investing in research and development. Adding that they have obtained a new boron product as a result of a 5-year-long study, Yılmaz claimed that this product has big demand in the iron-steel sector. The product they have presented to the market just 3 months ago is purchased by 9 iron steel firms, Yılmaz claims, explaining that it increases the steel quality and decreases the arc furnace waste storage costs. General manager also mentioned the big vehicle park of Eti Maden, stating that their practice involves earthmoving 100 million tonnes of soil each year. In this context, Yılmaz explained they have started to use locally manufactured equipment, due to a 2008 decision, and doing so they have saved 32 million years in 5 years. Hattat Holding Enters into Agreement with the Chinese for Hardcoal Mine in Amasra Hattat Holding signed contract with China Coal Construction for extraction of hard coal from its field in Amasra - Bartın, to be used at MW thermal power plant that they are also planning to build on the same site. Targets being 5 million tonnes/year in the first years and 10 million tonnes/ the contract is signed. Among the three bidders, Aksa Enerji made the highest bid of 3.2 kuruş per kilowatt-hour royalty and won management rights of the field for 30 years. The second highest bid was 1.53 kuruş by Flamingo Bio Yakıt Ltd. and Difer AŞ. was the third bidder with 0.77 kuruş. In relation to our current knowledge of the field and modern technologies, much year in the coming years, underground coal is anticipated to be extracted by underground and above ground machinery and equipment from Europe and China. Project is planned to be completed in 10 years with a total investment of 700 million dollar and 11 thousand employment opportunities. more coal is expected to be produced with surface mining techniques. The entirety of the coal that can be extracted from the field has the quality to be utilized in the thermal power plant. Present coal potential can feed a power plant with upwards of 150 MW power for 30 years. The company also has an ongoing 270 MW coal power plant project in Göynük, Bolu. Hattat Holding has invested 310 million dollar in Amasra - Bartın Hard Coal Project so far. Planning to reach a gallery inclined shaft length of 24 km at the end of the project, Chinese Datong is opening galleries of total 11 km and three 8 m diameter deep holes of up to 750 m with its 180 staff. 950 Million Tonnes of Lignite Reserve Found in Dinar MTA (General Directorate of Mineral Research and Exploration) discovered a lignite reserve of 950 million tonnes in Dinar, Afyon as a result of prospecting and development studies. A 3,500 MW thermal power plant is planned to be built, providing 6,000-7,000 job opportunities, in the region. Energy and Natural Resources Minister Taner Yıldız has announced in a written statement that this investment involving the local high-calorie lignite will serve not only Afyon but Turkey. Adding that they invested 1.2 billion Turkish liras to environment for thermal power plants in the last decade, Yıldız stated We are not investing at the expense of the environment but use clean coal technologies in these enterprises together with environmental investments. In the last decade we invested 1.2 billion Turkish liras in the thermal power plant environment. We are planning to invest more than 1 billion liras in the next term, as well. These investments are associated with old power plants. For the new thermal power plant constructions, we made completion of these investments compulsory. Flue gas desulfurization plants, electrofilters, ash storage field investments, air quality monitoring stations and waste water treatment plants are all completed at this stage.

13 Yıldırım Group s Latest Acquisition is Mechel s Chrome Assets Turkish conglomerate YILDIRIM GROUP s latest acquisition is Mechel Chrome, the chrome division of Russian Mechel. After a very competitive international tender among eight bidders, YILDIRIM is now the owner of Mechel Chrome s vertically integrated Voskhod Mining Plant in Kazakhstan and Tikhvin Ferroalloys Plant (TFP) in Russia. Located in northwest Kazakhstan, the Voskhod chrome ore mines and chrome concentrate plant, which began production in July 2009, feature an underground state-of-the-art mine and a modern ore processing plant. The mine has total reserves of 21 million tonnes of chrome ore. The plant s chrome ore boasts one of the highest Cr/Fe ratios in the world, at Voskhod is also responsible for sourcing chrome concentrate for TFP. The plant currently has an annual beneficiation capacity of 1 million tonnes of raw ore, which can be increased up to 1.5 million tonnes. Meanwhile, TFP, which is located 200 km southeast of St. Petersburg in Tikhvin, is one of Russia s largest producers of high-carbon ferrochrome (HC FeCr) with a chrome content of 69.5%, accounting for 22% of the country s production volume. As a relatively young plant that began production in April 2007, TFP is also renowned for being the most modern ferroalloy plant in the CIS, with advanced facilities like a gas cleaning system for the furnace, briquetting line and slag processing unit, as well as one of the lowest power consumption per ton rates in the CIS. Combined, Voskhod and TFP s assets supply the ferrochrome, chrome chemicals, alloy steel, foundry and stainless steel markets of Russia, Europe, US, China and Far East Asia. After the acquisition of Mechel s chrome division, YILDIRIM GROUP reached a consolidated 520,000 tonnes production capacity for high-quality high carbon ferrochrome (HC FeCr) in Turkey, Sweden and Russia, said Robert Yüksel YILDIRIM, President and CEO of YILDIRIM GROUP, about the investment. Therefore, YILDIRIM GROUP is the only global high carbon ferrochrome producer in three different countries in order to hedge the political, economic and other risks for its global long-term stainless steel customers. In addition, YILDIRIM GROUP s total annual chrome ore production will now reach 2.5 million tonnes in Turkey and Kazakhstan for its internal ferrochrome production and chrome ore exports. As the owner of Eti Krom Inc. in Elazığ, Turkey, as well as Vargön Alloys AB in Vargön, Sweden, YILDIRIM GROUP is already the world s largest hard lumpy chrome ore producer and the second biggest high-quality HC FeCr producer, after Eurasian Natural Resources Corporation (ENRC). YILDIRIM GROUP is also active in port, shipping and shipbuilding, fertilizer, coal and coke, energy, real estate development and private equity businesses. Columbus Copper and First Quantum Enter into Project Generation Alliance Columbus Copper Corporation (formerly Empire Mining Corporation) announced in its press release dated 8 May 2013, that it has entered into a project generation agreement with First Quantum Minerals Ltd (FQML). The agreement provides 250,000 dollar in reconnaissance funding to Columbus Copper over a twelve month period for the objective of identifying prospective copper dominant projects for acquisition in the European Balkan Peninsula and in Turkey, in which FQML may then elect to earn an interest by funding exploration spending. Specifically, if reconnaissance identifies a prospective mineral project, Columbus Copper will own the project and FQML will have the right to earn up to a 70% interest therein by entering into an option and joint venture agreement with Columbus Copper that requires FQML to fund up to 5 million dollar in staged exploration expenditures. The agreement may be terminated by either party on 60 days notice. David Cliff, the President and CEO of Columbus Copper, stated this generative agreement presents an excellent opportunity for Columbus Copper to strengthen its exploration and development portfolio in the Balkans and Turkey at minimal expense to the company. We are very pleased to be working with First Quantum under this agreement, which utilizes the local knowledge and experience of our exploration team. Stratex Announced its Q2 Figures AIM-quoted exploration and development company Stratex International Plc focused on gold and base metals in Turkey, East Africa and West Africa, announces its interim results for the six - month period ended 30 June According to the press release, Bahar Madencilik now vested at 55% in the Altıntepe project for 396,019 euro and million tonnes of low-grade material has confirmed its decision to start production, averaging 0.35 g/t Au, over 40 months. subject to permits. On receipt Lodos Maden Yatırım Sanayii ve Ticaret of the Forestry Permit, Bahar confirms AŞ ( Lodos ) now vested at 61% in the that construction will commence immediately. Muratdere project following comple- Initial production target tion of 7,900 metres of diamond drill- has been identified at three million ing and the payment of 500,000 dollar tonnes averaging 1.34 g/t Au, plus half to Stratex. September

14 New Copper Reserve in Küre It is reported that a new copper reserve of 25 million tonnes has been discovered in Eti Copper Co. s copper enterprises located in Küre District of Kastamonu. According to Anadolu News Agency, in his related speech, the Governor of Kastamonu Erdoğan Bektaş said that the copper reserve of Big Investment to Silopi Official opening ceremony of the first unit of the thermal power plant, foundation of which was laid by Ciner Group in 2006 and which has been producing electricity for some time, took place on March 9th, together with foundation stone laying ceremony of second and third units, with the participation of Prime Minister Recep Tayyip Erdoğan and Minister of Energy and Natural Resources, Taner Yıldız. With the official opening of the 135 MW first unit of the power plant, the 12 September 2013 company announced the second and third units to start to operate in 2014 and the total investment to reach 800 million dollar when the project is completed. When all units are functioning, the power outcome is expected to be 405 MW, which corresponds to 1% of the country s established power. Locally produced asphaltite will be used as fuel for the thermal power plant that is expected to produce 2.7 billion KW/hour of electricity. Employment opportunity for 2000 people will have emerged upon power plant operating at full capacity. Yıldızlar Holding Invests in Afghanistan It has been reported that Eti Gümüş AŞ, a subsidiary of Yıldızlar Holding has won a gold mine tender of 4 distinct fields. Ministry of Mines of Afghanistan announced that the Kabul-based Turkish - Afghan Mining Company (TAMC) is one of the preferred bidders of the tender initiated last November. TAMC Meanwhile, Ciner Group owned Park Elektrik AŞ that manages the asphaltite field in the region for Silopi Thermal Power Plant has announced that Tellioğlu Petrol İnşaat Nakliyat Ltd. is the selected preferred bidder for stripping in the asphaltite field. Another note from the company s statement is that Park Elektrik AŞ Administrative Board has decided on a one-year contract with Tellioğlu İnşaat. Miners Waiting for Solution on Circular Problem The circular, published on the Official Journal on 16 th of June, 2012 with the signature of Prime Minister Recep Tayyip Erdoğan, for a requirement of authorization at the Prime Ministry level for acquisition, leasing and utilization of every publicly owned immovable property has been causing trouble in the mining, energy and telecommunications sectors. In its April 8 th 2013 edition, Dünya Gazetesi published thoughts and comments of Association of Mining Sector Presidents Concil (MSBK) president İsmet Kasapoğlu on the matter. Kasapoğlu once again called for discontinuance of this practice and stated that their year-long strife for a solution has been to no avail. Adding that they are preparing to send a new letter to Ministry of Energy and Natural Resources 25 million tonnes recently discovered in Küre is highly significant considering Turkey s huge demand for copper. Eti Copper Co. Küre General Director Ahmet Tezcan expressed their hope that the reserve would reach 30 million tonnes subsequent to the studies to be is 51% owned by Eti Gümüş and 49% Afghan Gold and Minerals Company. Each covering 250 km 2, fields associated with this tender are situated within the Badakhshan Province, sharing borders with Tajikistan and Pakistan. The fields fall within a region known regarding this Prime Ministry circular, Kasapoğlu will explain the impairment of the sector again. Kasapoğlu pointed out that hundreds of applications sent to Prime Ministry from General Directorate of Mining Affairs (MİGEM) and General Directorate of Forests have been waiting for approvals for months and the sector has not received any feedback on the authorizations. As this has been adversely affecting the industry, Kasapoğlu stated his knowledge as to many investors that are new to mining industry or having plans to invest in this sector have decided to fall back and the ones that have been long time investors in the sector have started reconsidering. As he claimed that the negative results of the practice of the circular will be carried out, and added We have been discovering new reserves upon the exploration activities conducted throughout the past 3-4 years and our goal is to unveil the final reserve numbers during and to initiate ore production in Turkey s largest and deepest shaft as of with its richness in gold, silver and copper. Previous accounts by various newsagents have stipulated Afghanistan to harbor 1 trillion dollar-worth of ores and minerals and 25 billion dollar worth of gold. more apparent in 2 or 3 years, Kasapoğlu warned that the projects have become inapplicable and the facilities may soon need to stop operating. He stated that, according to the Mining Law, the licences will become invalid in case the authorizations are not received in 3 years and the delays due to the circular have also resulted in such problems. Kasapoğlu stressed the fact that mining industry matters in other parts of the world are regulated by static and longterm rules; pointing out to a possible period of 15 years between prospecting the ore and managing it, Kasapoğlu added that frequently changing laws and such circulars may halt investments in the mining industry.

15 2012 Tax Champion Mining Companies Turkey s corporate tax champions of 2012 have been announced. The comparison between the Presidency of Revenue Administration s list of top 100 companies to have declared the highest corporate tax throughout Turkey during the taxation period of 2012 and that of 2011, reveals a considerable decline in the number of mining and mining-related companies on the list. 10 companies which produce minerals or use minerals as raw materials in production have managed to make it to the list while this number was 17 last year Corporate Tax Listing of Turkey List of Mining and Mining Related Companies in Top Corporate Tax Listing of Turkey List of Mining and Mining Related Companies in Top 100 Rank Name Tax Assessment (TL) Rank Name Tax Assessment (TL) 19 Eti Mine Works General Management 149,942, Tüprag Metal Mining Inc. 128,520, Koza Gold Operations Inc. 122,801, Tki Corporation Ege Lig. Ins. 63,561, Tki Corporation Güney Ege Lig. 61,816, Eti Copper Inc. 58,371, Çayeli Copper Operations Inc. 52,075, Erdemir Mining Industry Inc. 48,253, Kardemir Karabük Iron and Steel 42,200, Akçansa Cement Industry Inc. 28,846, Eti Mine Works General Management 163,438, Ereğli Iron and Steel Fab. Inc. 141,289, Tüprag Metal Mining Inc. 111,105, Koza Gold Operations Inc. 99,883, Çayeli Copper Operations Inc. 67,615, Erdemir Mining Industry Inc. 54,518, Soda Industry Inc. 45,899, Tki Corporation Güney Ege Lig. 41,446, Eti Copper Inc. 41,198, Trakya Glass Industry Inc. 37,911, This year, as in the case of past three years, Eti Mine Works came first among the mining companies, however receded to the 19 th place on the list of 100 companies due to the approximate decrease of 8% in its accrual amount. Tüprag Metal Mining which ranked second among the mining companies advanced to the 20 th place among the top 100 companies paying a tax of 128 million 500 thousand Turkish lira, upon an 16% increase in its accrual amount. Tüprag ranked 23 rd last year. The tax ratio of Koza Gold Operations, owner of the third place on the list this year, has increased by 23% compared to last year and reached 122 million 800 thousand Turkish lira. Koza came 21 st among the top 100 companies. The climb of Tüprag and Koza on the list could be attributed to the high course of gold prices during the year An overview of the table would indicate that, during the taxation period of 2011, companies associated with mining paid the government an aggregate tax of 1 billion Turkish lira, whereas this number 64 Tki Corporation Seyitömer Lig. 36,151, Tki Corporation Ege Lig. 33,934, Çimsa Cement Industry Inc. 29,448, Eti Silver Inc. 26,752, Park Electricity Generation Mining Industry Inc. 25,470, Kardemir Karabük Iron and Steel 25,034, Eti Aluminium Inc. 24,774, was only 756 million Turkish lira this year. Bearing in mind that this amount of paid taxes belongs only to 10 companies, one can easily comprehend how profoundly the mining sector would contribute to the country s economy, if it advances. Rubicon Resources Established a Base in Ankara, Turkey According to the update on Turkish focus dated 19 March 2013, it has now established a Turkish registered subsidiary company and assembled the core of a high quality in-country team to assist in the accelerated programme of project assessment, exploration and development in Turkey, Rubicon has targeted project interests in gold/copper and base metals and is in advanced discussions for initial acquisition. So far, Rubicon has conducted field visits to projects containing low and high sulphidation epithermal, porphyry related and VMS mineralized systems in Western, Central and Central Eastern Turkey. Rubicon is targeting projects that have existing ore grade intersections that are held by both international companies and local Turkish groups that are seeking partners with exploration expertise. First Quantum Acquired 92.74% of Inmet Shares Tendered First Quantum Minerals Ltd. announced on April 2013 that a total of 65,206,044 common shares of Inmet Mining Corporation representing 92.74% of the Inmet shares had been validly tendered to the First Quantum s offer to acquire all of the shares of Inmet Mining Corp, winning a 5.1 billion Canadian dollar hostile battle for control of one of the world s largest untapped copper deposits - Cobre Panama. Commenting upon the offer s successful completion, Philip Pascall, First Quantum s Chairman and CEO, said: We are delighted that our offer was met with such overwhelming acceptance by Inmet shareholders. We wish to once again thank them for their tremendous support throughout the course of our offer and to welcome them as new shareholders of First Quantum. We look forward to a bright future in which, together, we turn our vision of a new global copper leader into a reality. September

16 Tenth Development Plan ( ) Adopted in the Turkish Grand National Assembly The tenth development plan submitted to the Turkish Grand National Assembly (TGNA) has been adopted. In his presentation before the TGNA Commission on 18 June 2013 Tuesday, The Turkish Minister of Development Cevdet Yılmaz noted Exportation in our mining sector has risen from 382 million dollar to 3.2 billion dollar in the past decade. Between the years , the investment allocations for petroleum, natural gas, mineral and geothermal resource exploration has been significantly increased. We are going to amplify explorations in the mining sector. In his regard, we aim to raise the quantity of drilling from 1.3 million meters to 3 million meters.. The part regarding the mining sector in the Tenth Development Plan is as follows: STATUS ANALYSIS While the share of Turkish mining sector within the GDP was 1.2% in 2006, it has risen to 1.5% in The aggregate exportation in 2006 was 1.1 billion dollar, whereas in 2012 it has reached to 3.2 billion dollar and a substantial part of this exportation consists of natural stone, copper, zinc, chrome, feldspar, and boron. The aggregate importation was 22 billion dollar in 2006, however in 2012 it has reached to 42.2 billion dollar and of this amount, an about 39.5 billion dollar pertains to crude oil and natural gas, 1.1 billion dollar to anthracite and 1.1 billion dollar to iron. The financial resources allocated to investments in exploration of mines, raw materials for energy and geothermal resources has been increased significantly, with a view to mitigating external energy dependence and meeting raw material needs in industry. In this framework, while the funds allocated in the year 2006 to the Directorate General of Mineral Research and Exploration (MTA) for mineral and geothermal resource explorations during term of was 32 million Turkish lira, in 2013 this amount has been increased to 200 million Turkish lira, and the funds allocated to Turkish Petroleum Corporation (TPAO) for petroleum and natural gas exploration has been increased form 450 million Turkish lira to million 14 September 2013 Turkish lira, during the same term. In an attempt to increase domestic production in petroleum and natural gas and to ensure uninterrupted activities of exploration, a seismic research vessel was procured in Moreover, the petroleum and natural gas exploration activities initiated abroad by the Turkish Petroleum Corporation (TPAO) and Petroleum Pipeline Corporation (BOTAŞ) are currently underway. In addition, the full-fledged national research vessel of the Directorate General of Mineral Research and Exploration (MTA) is under construction. The rapid growth trends of developing countries, particularly China and India, have cast an effect on the global mining market and caused a profound increase in the mine prices. The leading developed and developing economies such as the USA, the EU, Japan, South Korea and China, conduct studies on demand and supply-focused management of raw materials and develop and implement their respective raw material management strategies. This clearly indicates that an initiative in this regard must be developed in our country, as well. Upon the Law on Geothermal Resources and Mineral Waters which took effect in 2007 and the various amendments and alterations made on the Mining Law in 2010, the disarray in the legislation has been eliminated and the legal infrastructure for more efficient uses of such resources has been provided. Exportation of boron products has risen, upon a significant boost, from 367 million dollar in 2006 to 797 million dollar as of 2012 and Turkey, with its 46% market share, has maintained its global leadership in boron products exportation. Furthermore, raw marble exportation has risen from 239 million dollar in 2006 to 881 million dollar in By virtue of the exploration activities carried out during the term of the Ninth Development Plan, the known lignite coal reserve has risen from 8.3 billion tonnes to 12.8 billion tonnes and 38 new geothermal sites have been discovered. Then again, it is essential to ensure that underground resources such as geothermal, lignite, marble, boron and chrome of which our country has great potential, are integrated in the economy providing a higher added-value. In the mining sector, there is an ongoing need for the enhancement of license guarantee, simplification of complex and prolonged permit processes, increasing the added-value upon domestic processing of imported mines, scaling up exploration activities particularly in the private sector, restructuring and improving the efficiency of public organizations, planning of mining activities in coordination with activities and investments of other sectors, eliminating the problem of scale and technology in mining companies and enterprises. GOAL AND OBJECTIVES The fundamental goal is to soundly identify the mineral potential of our country, ensure supply guarantee for raw materials required for production and increasing the added-value upon domestic processing of mines with a view to amplifying its contribution to the economy. POLICIES In line with the objective of mitigating external dependency for energy production, petroleum and natural gas exploration activities within and outside the country will be accelerated, exploration activities to identify the potential for domestic resources such as lignite coal and geothermal will be maximized. Comprehensive research activities on shale gas will be ensured. Domestic exploration and production of industrial raw materials such as iron ore, marble and boron will be prioritized. A strategy will be generated for the secure supply of raw materials that are fundamental and critical for the Turkish economy. A system will be established to provide order in outflow of critical raw materials, mines and minerals. With regard to the list of critical raw materials designated by countries and groups of countries, the exploration program for the exploration and production of raw materials in

17 Turkey, in particular Rare Earth Elements. The harmonization of the mining sector with the legislation on labor safety and environment will be improved. Domestic processing of mining products such as chrome and marble, and thereby increased addedvalue will be ensured. Formation of global and competitive mining companies will be encouraged Ratio of Mining Added-Value to the GDP (Current rates, %) Mining Exportation (Billion USD) Boron Exportation (Billion USD) Drilling Quantity (Thousand Meter) ,000 1,300 3,000 Visible Lignite Reservoir (Billion Tonnes) Table 26: Advancements and Objectives in Mining Sector Source: Data on the years 2006 and 2012 are cited from Turkish Statistical Institute (TurkStat) and the Ministry of Energy and Natural Resources. Data on the years 2013 and 2018 are the estimations of the Tenth Development Plan. (1) The data on the years 2006 and 2012 are estimated values. Austrian RHI Buys Cihan Group s Magnesite Enterprise Austria s leading refractory material producer RHI AG officials announced they have been negotiating to buy the magnesite enterprise owned by Turkmag, one of Cihan Gruop companies based in Kocaeli, as well as the due mineral Mine Producers in İstanbul Chamber of Industry 500 Announced The awaited Top 500 Industrial Enterprises of Turkey report issued each year for the past 45 years by İstanbul Chamber of Industry (ISO) has been announced. In the press conference, the Head of the ISO Management Board Erdal Bahçıvan noted that the sectors which were regarded as the backbone of the industry 30 years ago have now fallen behind, whereas the ones rights. Noting that the official process was underway, the statement referred to an amount of 36 million euros as the price offered for the enterprise located in Aşakale district of Erzurum, with a reserve of 85 million tonnes and annual production capacity of 120 million tonnes. The statement by the Austrian refectory producer also indicates that the company aims to extend its raw material supply chain via procurements. on the lower ranks on the list in the past have become the drivers of the industry today. In parallel with Bahçıvan s statement, the mining sector has also manifested an increase this year. Mining Companies in Turkey s Top 500 industrial Enterprises of 2012 Mining Companies in Turkey s Top 500 industrial Enterprises of 2012 Rank By No. In Top 500 In 2012 Firm or Enterprise Net Sales Revenue (TRY) Rank By No. In Top 500 In 2012 Firm or Enterprise Net Sales Revenue (TRY) 15 General Directorate Of Turkish Coal Enterprises 2,886,203, Eti Mine Works General Management 1,487,462, Tüprag Metal Mining Inc. 1,085,155, Koza Gold Operations Inc. 1,041,141, Akçansa Cement Industry Inc. 992,214, Soda Industry Inc. 844,690, Çimsa Cement Industry Inc. 799,027, Eti Copper Inc. 684,731, Kaleseramik Çanakkale Kalebodur Ceramic Industry Inc. 598,072, Limak Cement Industry Inc. 496,166, Çayeli Copper Enterprises Inc. 495,019, Erdemir Mining Industry Inc. 481,032, Aşkale Cement Industry Inc. 468,812, Nuh Cement Industry Inc. 468,522, Limak Batı Cement Industry Inc. 404,392, Çimko Cement and Concrete Industry Inc. 402,802, Eti Soda Inc. 402,785, As Cement Industry Inc. 390,120, Esan Eczacıbaşı Industrial Raw Materials Inc. 372,937, Eti Silver Inc. 348,220, Adana Cement Industry Inc. 287,034, Çimentaş İzmir Cement Factory Inc. 283,878, Soma Coal Enterprises Inc. 281,483, General Directorate of Turkish Hard Coal Corp. 274,618, BATIÇİM Batı Anadolu Cement Industry Inc. 262,497, Seranit Granite Ceramik Industry Inc. 241,744, Konya Cement Industry Inc. 235,685, Ünye Cement Industry Inc. 231,117, Park Electricity Generation Mining Industry Inc. 225,534, Mardin Cement Industry Inc. 206,067, GÖLTAŞ Cement Inc. 203,142, Eti Chrome Inc.. 195,537, Traçim Cement Industry Inc. 194,933, Adoçim Cement Concrete Industry Inc. 193,605, Bolu Cement Industry Inc. 193,361, KÇS Kahramanmaraş Cement Concrete Industry and Mining Operations Inc. 189,138, Denizli Cement Industry Inc. 188,265, Demir Export Inc. 178,070,546 September

18 Profile Chairman s Message Of AME-Jamieson AŞ The mining industry worldwide is undergoing unprecedented changes and influenced by the waning Chinese demand, high volatility of commodity prices and rising exploration costs, it s becoming harder for mining companies to predict future demand and assess an increasingly complicated choices to satisfy the shareholders, commented Alan M. Clegg, Deputy Chairman of AME-Jamieson Group (AMEJ). David Jamieson, AMEJ s Chairman, said There are also strong signs of deferring investment and expansion projects globally. However, continued investment in parallel to increasing operational efficiency, productivity, mitigating risk and monitoring compliance in addition to appropriate effort on health, safety and environmental (HSE) management is necessary to enable companies to stabilize the volatility and continued business success. Thus Jamieson Group in close cooperation with the globally experienced and locally focused Afrasia Mining and Energy Consulting (Afrasia or AME) from Ankara is focusing its efforts in Turkey and the region within which Turkey is situated, i.e. North Africa, Eastern Europe, Balkans, Middle East and Turkic Republics to provide better and high quality services to its clients. Despite Turkey s amazing diversity of industrial mineral deposits and varied base metal reserves, the mining industry is still in its development phase and infancy. Due to constantly increasing domestic and world demand and also with an increasing number of local and foreign participants playing active roles in shaping the growing market, the mining industry in Turkey has flourished rapidly in the last 20 years as one of the world s most promising 16 September 2013 and dynamic mining destinations. Major opportunities exist in upgrading facilities for mining coal, zinc, copper, gold and silver, as well as for iron ore, bauxite lead and nickel. In mining sector, there is growing demand for environmental engineering and consulting services include process development, process-control, chemical and metallurgical analyses, reserve estimation and underground mining operation, operational efficiency and also specialized auditing services to fulfil local accounting and international compliance requirements. David Jamieson commented further that, These complexities put burden on project, design and operations teams and in addition there is an ever increasing demand for effective management of operations, production and supply throughout the mine and plant lifecycle. AMEJ offers a unique solution to identify leaks and losses and close gaps to enhance productivity and profitability. Alan M. Clegg added, Also without monitoring compliance, and indeed optimizing business performance based on the intelligence gained from careful scrutiny of operations, processes and activities, businesses can struggle to survive. In Turkey we have many medium to large companies in the sector in this position with low or negative equity making it impossible for them to raise further investment funding. There only way out is to work their way out through business improvement at the existing root status. Jamieson Group s efforts with Afrasia Mining and Energy Corporation have 2 goals to achieve. 1. As a new organization in Turkey, AME-Jamieson would like to maintain the competitive advantage even increase it with integrity in services from management consultancy to full fledge technical services in mining. 2. The second goal is to increase our stronghold in the region to further support regional industries. This will further allow us to share best practices in the region for our new and existing valued clients. Having a truly global footprint ensures that we can support our clients with impeccable service quality wherever they may be located. Our new JV Corporation, AME Jamieson AŞ with its partners has experienced consultants in all industrial operational areas ready to assist in management consultancy, gap analysis and assessments, business process design and changes in every step of the Mine and Plant Life Cycle including exploration, engineering and project development. We look forward to working with all our current and prospective clients to assist them to grow and flourish their businesses during this challenging economic period. CONTACTS AME-Jamieson AŞ Address : Mustafa Kemal Mah Sok. Demirler Atlas Plaza No : 14 / 16 Çankaya - Ankara - Turkey Phone : +90 (312) Fax : +90 (312) Website :


20 Interview Çayeli Bakır İşletmeleri: 30 Years Of Success In Black Sea Çayeli Bakır İşletmeleri AŞ (CBI) is whollyowned subsidiary of First Quantum Minerals and operates Çayeli mine located on the Black Sea coast of northeastern Turkey. Çayeli mine is an underground copper and zinc operation and produces copper concentrate, copper and zinc bulk concentrate and zinc concentrate. Çayeli is the largest underground base metals mine in Turkey. It produced its first concentrate in 1994 and is expected to operate until at least Çayeli is an example of mining and metallurgical experience translating to achieving throughput that exceeds design capacity, as Çayeli s initial design mill capacity of 650,000 tonnes per year has grown to 1,200,000 tonnes per year. This year, its CBI s 30th year anniversary. For this reason Mining Turkey Magazine made an interview about CBI and Turkish mining sector with the managing director of CBI, Iain Anderson, who has been living in Turkey over a decade and has joined CBI in Mr Anderson, you are one of the well-known familiar faces of the Turkish mining sector. How would you describe the changes and evolution of the Turkish mining sector as someone who has been closely observing it for more than 10 years? (IA:) I have witnessed many positive developments in both Turkey and our mining sector since I have been living here. There is certainly a lot more interest in the sector; this is evident from the amount of exploration drilling that is occurring today compared to levels that were almost stagnate about 10 years ago. Interest in the sector is being driven by both domestic and foreign investors and it is easy to see that working standards and the level of professionalism across the sector is steadily improving as companies adopt modern exploration, mine planning and operating methods. I m happy to say that the future of mining in Turkey looks healthy and the sector will make an important contribution to the national economy if the government is going to achieve the ambitious growth targets it has set by the 100th anniversary of the Republic in What do you think are the challenges and the advantages of being in this sector? (IA:) Our sector certainly faces challenges probably the greatest challenge is perception management. Many people still believe that mining companies are making super profits at the expense of people and the environment. Mining is and will remain a risky business. My view is that the development of a new mine is the biggest challenge faced by any mining Company. Mining is controlled by commodity prices and in times of declining demand for our products it is only the most cost effi- Remotely operated LHD in the underground 18 September 2013


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