Industrial Minerals And Rocks of Turkey

Transcription

1 by ISSN: Mining & Earth Sciences Magazine Spring 2015 Vol 4 Number 8 Industrial Minerals And Rocks of Turkey 2014 Turkish Industrial Minerals Export Another Step Forward In The Mining Industry

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4 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) [email protected] Editor - International Relations (Sorumlu Yazı İşleri Müd.) Hazal Birses [email protected] General Coordinator Onur Aydın [email protected] Administrative Affairs Volkan Okyay [email protected] Graphic Design Savaş Özyer [email protected] Web Technologies Bilgin B. Yılmaz [email protected] Corporate Communications Buğrahan Haksever [email protected] Interpretations Kardelen Gönül Legal Adviser Av. Evrim İnal [email protected] 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 [email protected] Annual Subscription Enquiries [email protected] 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) FROM THE EDITOR TURKISH MINING SECTOR NEWS TYRFIL: FLATPROOFING SOLUTION TO TIRES - FKK INDUSTRIAL MINERAL AND NATURAL STONE EXPORT OF TURKEY IN Hazal Birses INDUSTRIAL MINERALS AND ROCKS OF TURKEY PRODUCTION ASSESSMENT AND IMPLICATIONS - Özcan Yiğit ANOTHER STEP FORWARD IN THE MINING INDUSTRY - Göknil Ceylan EFFECTIVE ROADHEADER FOR COAL MINING - Sandvik Mining LIFE OF A MINE MANAGER AMIDST CULTURAL TRANSFORMATION - Shane Gant, Sean Dessureault, M. Mustafa Kahraman HIGH CALORIFIC VALUE COAL: GLOBAL AND TURKISH OUTLOOK - Mustafa Kerem Topuz, Süheyl Bilgel ARGETEST - Argetest VALUATIONS IN MINING & MINERAL ASSETS - PART I - Alan M. Clegg PLEASE START USING PETROFER FIRE RESISTANT HYDRAULIC FLUIDS!!! - Petrofer Turkey TURKEY S HIDDEN POTENTIAL: THORIUM - Hazal Birses SPOTLIGHT ON UQ IN TURKEY - The University of Queensland ADVERTS INDEX EVENTS LIST Cover Photo Aragonite, which largely compose limestone with calcite, is a naturally occurring mineral and crystal form of calcium carbonate. Limestone is an abundant sedimentary rock; in fact it consists 10%of all sedimentary rocks. Turkey is an important limestone producer, and the majority of the Turkey s limestone is recovered in the Aegean region. Limestone is used for several industries such as construction industry, medical industry and chemical industry. The naturally occurring aragonite crystal sample on the cover was obtained in Elmadağ, Ankara. 2 Spring 2015

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6 Editor Passive Aggressive Mood of Turkish Mining Industry Hazal Birses Turkish mining industry has been seeking a way out from the drawbacks of the latest legislations for the last two years. The government has been trying to provide an optimum solution, being conscious about the industry s apprehensions and demands. Authorities did not flinch from consulting public institutes or associations before enacting the mining legislations. Companies, on the other hand, were suffering from two major subjects which are permitting process and the value of forest lands. Exploration companies had difficulties obtaining environmental permits and surface areas; therefore many considerable exploration projects had to be precluded by reason of permitting process. Besides, both exploration and production companies were forced to pay high forest land fees in order to do operations. A number of international exploration companies, including large scale companies, have decided to hand over their projects to local or other international companies during this period. They showed risky condition of Turkey as their reasons for leaving. On the contrary, some other internationally large scaled companies have entered to Turkish market to take advantage of this tense atmosphere. These companies either consider this period an exact time to be involved in the mining industry of Turkey or they see the light at the end of the tunnel. The government has recently published a new amendment to the Mining Law No on the official gazette. As a whole, the amendment pleased the mining industry although some articles are not found satisfactory by company authorities. A circular about all entailed lands of Turkey has been constituting the major problem of mining companies since The new amendment failed to offer a solution to this problem, which obliges all transactions related to State owned lands subject to the approval of the Prime Ministry. Hence, mining industry keeps insisting on their primary demands about the circular before it is too late. On the other hand, recent efforts of government may relieve the industry s anxiety. The amendment cleared up an important struggle for the exploration companies. Some clauses of the Law had been penalizing exploration companies by delicensing before the amendment; but now the companies are served with fine. Thus, all the efforts of the exploration companies will not go down the drain for an unexpected reason. Another unpleasant incident showed up with the application regulation of 16th article of the Forest Law no on April Despite the complaints of the industry before the regulation, the regulation instead, tripled the value of use and sale of government forest land. Hopefully, Republic of Turkey Ministry of Forestry and Water Affairs published a draft that lowers the value 50%. In general, mining companies are optimistic about the future of Turkish mining industry. They believe that engaging in dialogue with government structures will solve all of these problems eventually. Recent exploration results and opportunities of Turkey keep attracting companies around the world. However, in order to accelerate the mining development of Turkey, the government needs to get a move on. Collaboration between mining industry and government authorities with the consult of associations, institutes and universities could be the driving force of this acceleration. Subscribe for new Issue alerts and more! 4 Spring 2015

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8 News Turkish Energy and Natural Resources Minister Commented About Privatization of Boron Mines Energy and Natural Resources Minister of Turkey Taner Yıldız commented on a Turkish TV channel program that privatization of Turkish boron is beside the point. We would not privatize boron. We do not have any privatization schedule, on the contrary we would like to emphasize that boron should remain nationalized. Neither Justice and Development Party (AKP) nor Turkey has Koza Announced Partnership Agreements in Ireland and Portugal Koza Limited, a subsidiary of Koza Altın İşletmeleri A.Ş. has signed an agreement with IMC Exploration Limited regarding gold, silver and base metal exploration activities on IMC s four license areas in Ireland. The agreement includes exploration operations, geological surveys and their finance. Koza Ltd, which will operate and/or develop the Project, will have the right to own İhlas Madencilik Continues Operations İhlas Madencilik, an important metal mining company of Turkey released its 2014, 03 report. According to the report, İhlas has continued to reserve determination process on its existing mines as well as making geological surveys in 29 fields in The company, on the other hand, has applied for 81 royalties so far. İhlas initially plans to increase the capacity of Bayındır zinc lead facility, implement polymetal any cogitation about privatization of boron. said Yıldız, regarding privatization of boron mines, which has become a current issue lately. October %of shares of JV company. Koza had signed an agreement with Lonmin Limited in Ireland in Thus, Koza has increased the JV companies to two in Ireland with the latest agreement. At the same time, Koza Ltd announced another agreement with Kote Medgold to TSX. Koza acquired 19.31%of Medgold stakes by issuing C$1.5 Million through Joint Venture agreement. The agreement includes exploration operations of gold and silver deposits in Portugal and Koza will owe the higher share of JV company. Koza Limited will initially have the right to owe of 55%of shares whereas the company has an option to owe 75%of shares of the JV company. March 2015 investment in Salihli and complete preliminary preparations at Elbistan power plant. Reserve determination and development operations will continue by application results and other investment projects will take a place in 2015 schedule. İhlas Madencilik had completed feasibility studies and capital budgeting for Salihli polymetal project in The company applied for mining license and has been waiting for response from competent authority. Mir İç ve Dış Ticaret, which is a subsidiary of İhlas Madencilik has completed the feasibility studies to produce concentrated zinc lead with 500 tons/month capacity in two fields in Bayındır region. İhlas has time extension option in group IV mine in Çanakkale Kalkım, whose royalty was obtained by Oreks Madencilik. November Billion TL Budget for 52 Projects in Spring mining and petroleum-natural gas explorations are billion TL budgeted on 2015 annual investment program. According to Anatolian Agency (AA), mining and petroleum-natural gas explorations were TL budgeted in 2014, now this value has raised to billion TL in 2015.The biggest share of this budget belongs to Turkish Petroleum (TP) General Directorate while General Directorate of Mineral Research and Exploration (MTA) becomes the most budgeted mining institute currently. Electricity Generation Company (EÜAŞ) General Directorate is also one of the most budgeted institutes among all mining sector related to institutes. EÜAŞ budget is determined as 100 million TL for its 8 projects. State-owned coal producer companies, Turkish Coal Enterprises (TKİ) and Turkish Hard Coal Enterprises (TTK) will carry out 10 projects. 5 projects of TKİ have 100 million budget whereas 5 projects of TTK have 95 million TL budget. On the other hand, Eti Maden General Directorate will carry out 11 projects with a 60 million TL budget and Republic of Turkey Ministry of Energy and Natural Resources has 4 million TL budget for 3 projects. January 2015 Source: wikipedia.org

9 Çelikler Won Orhaneli and Tunçbilek Thermal Power Plants and Properties of Bursa Lignite Tenders Qatari Company Negotiates to Invest in Turkish Coal Power Plant Project Negotiations between Qatari company, Nebras Energy and Turkish authority are proceeding for a large scale project including operation of Afşin Elbistan coal field and constructing a thermal power plant on this region. Along with developing coal mines, the project will aim to Çelikler Taahhüt İnşaat ve Sanayi AŞ won privatization of Orhaneli and Tunçbilek thermal power plants and properties of Bursa Lignite tenders for $521 million offer. Tender was initiated by Privatization Administration of Turkey and closed offers were taken at preliminary qualification. Highest offer was $160 million in this qualification then two more tender qualification sessions were opened. Starting bid was $463.8 million on auction and minimum bid was set to $100,000. Konya Şeker Sanayi ve Ticaret AŞ and Çelikler Taahhüt İnşaat ve Sanayi AŞ were the two companies on auction and Çelikler won the tender after a 30 minutes session.çelikler had also won Seyitömer thermal power plant tender for $2.2 billion in Chinese Investors Caused Marble Crises in Turkey build coal power plants that will be able to generate 4,500 megawatts of electricity. Nebras Power and Qatar Holding, in cooperation with some of the world s most experienced developers in this field, have begun working on project feasibility studies. said Khalid Jolo, CEO Lundin Mining Corporation Opened Turkish Branch International mining company, Lundin Mining Corporation opened their Turkish Branch in January 2015 in Ankara. Directors or delegates of Turkey s leading mining and earth sciences companies joined the opening cocktail. We believe in mining potential of Turkey and we would like to invest in Turkish mining industry through Lundin s experience. As a result of our persistence in this issue, our Ankara branch was opened with your kindly participation. I hope Lundin Mining, which has an understanding of One of the most important sectors in Turkey, natural stones and marble sector, has been facing crises after Chinese marble quarry investments in Turkey. Balance of marble sector has been upset because of being a rapidly growing and export-dependent sector in Turkey. Chinese investors have acquired more than 100 marble quarries in Mediterranean region of Turkey which is a critical region for Turkish marble sector. Chinese block marble merchants, who prefer to invest in Antalya, Isparta and Burdur, have come a long way in forming the sectors rules. Mediterranean December 2014 of Nebras Energy. Negotiations between Turkish authority and other companies for Afşin Elbistan project could not be concluded previously. December 2014 sector representatives claim that marble purchasing in Turkey are encouraged and credited by Chinese Government, whereas Turkish companies continue to look for a way to get over this crises. December 2014 caring about people and environment, will contribute to Turkish mining industry and economy. said Tayfun Cerrah, New Business Development, Europe and Near East Director of Lundin Mining. Ciara Talbot, Corporate Manager Exploration and New Business Development of Lundin Mining made a statement about Lundin s Turkish Market penetration. According to Talbot, Lundin has been seeking for mining opportunities of Turkey and evaluating several offers since June 2014 February 2015 Imerys Acquired S&B Minerals Imerys, the world leader in mineralbased specialty solutions for industry, acquired S&B Industrial Minerals assets for 525 million. S&B minerals is the European leader in bentonite and the world leader in continuous casting fluxes, wollastonite and perlite-based solutions. Therefore Imerys, which holds feldspar, calcite and perlite mines in Turkey, is expected to take the world leader position in bentonite, perlite and wollastonite production after acquisition of S&B. Acquisition does not include S&B s bauxite mines in Greece and it will come into force by confirmation of competition authority in December 2014 Spring

10 Chesser Resources Leaves Turkey Australian mining company, Chesser Resources, which has been operating in Turkey for 7 years, announced that they would leave. Turkey by the end of June Chesser had mentioned conducting a strategic review for company s future in a previous announcement, then capital distribution to shareholders instead of investing in sources was decided by company managers. According to the report that was given to Australian Stock Market by Chesser, company s former project, Kestanelik had a considerable potential for future operations. However Chesser decided to sell the project that is under development process to avoid several political or other risks. February 2015 Anatolia Energy Completed Prefeasibility Study for Temrezli According to the prefeasibility study (PFS) carried out by Anatolia Energy, Temrezli Uranium Project is found out as profitable. By taking 5.2 million tons of uranium oxide (U 3 O 8 ) resource into consideration, PFS was based on processing of uranium bearing solutions, which are obtained from Temrezli field, in a central processing plant that delivers 1.2 million tons of U 3 O 8. PFS shows that $41 million will be invested by Anatolia Energy in order to recover 9.9 million lb (around 4500 tons) U 3 O 8 in following 12 years. Completion of the PFS is a significant milestone for Anatolia and takes the company to a great deal closer towards achieving our objective of becoming a high margin producer of uranium in the near term. Our focus over the coming months will be to complete detailed plant designs and seek to assess the project capital based on local Turkish plant costs,which we believe may substantially reduce up front capital requirements. said Paul Cronin, CEO of Anatolia Energy. Besides, Anatolia Energy plans to submit environmental and social impact assessment (ÇED) at the end of February while they will be working on converting their operating license into an operating permit. February 2015 Ariana Resources Evaluated 2014 Operations Anglo-Turkish gold exploration and development company focused on Turkey, Ariana Resources made a brief evaluation of company s Turkey operations. According to the announcement; Ariana successfully completed the permitting process required by the Turkish Ministry of Environment and Urban Planning as a part of the Environmental Impact Assessment (EIA) reporting process by the end of 2013, so the company could apply for a 20 year license extension. Besides, Ariana s application to the Ministry of Economy for a series of tax incentives and other government support mechanisms was also approved in June. Finally the company obtained 100%of the land rights for their primary Reserve at Kızıltepe. According to the announcement, Ariana is likely to move into mine construction at Kiziltepe as they await the delivery of the final permit for access to government-owned land, which in this case relates to an area of forest. Moreover, the company indicated that expanding Kızıltepe resources, which is a part of Red Rabbit district, in size and scale is taking their priority. Once the Kiziltepe mine becomes operational, Ariana expects to convert this potential into further mineable reserves, enhancing mine life as well as the long-term economics of the mine. On the other hand, Ariana continues to advance their exciting Ardala-Salınbaş JV project with Eldorado Gold Corp. Independent reviews of geological, metallurgical and mining data were completed and the JV is in the process of compiling this data as part of an internal scoping study which will be used to gauge the potential value of the project. February 2015 $100 Million Investment to Perlite by Bergama Madencilik Bergama Mining, which is a perlite mining company of Turkey plans to invest $100 Million to company s existing mines in Aliağa and Akhisar regions and projects to produce perlite this year. Chairman of Bergama Mining, Levent Çullas emphasized that 74%of world s total perlite reserve (5.7 billion tons) present in Turkey and he added EU countries have been studying on modification of perlite for more efficient use in recent years and R&D department of Bergama has been following the same procedure. Bergama mining recovers perlite from 10 different perlite ore quarries in İzmir, Manisa, Çanakkale and Ankara which are expanded in 5,752 hectares and the company produces recovered perlite in İzmir and Konya processing plants. February 2015 Source:bergamaperlite.com 8 Spring 2015

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12 Mediterranean Resources Leaves Turkey by Selling its Interests to Turkish JV Partner Canada based, gold and base metal exploration and mining company Mediterranean Resources announced sale of its Turkish property to company s Turkish joint venture partner. Mediterranean has had exploration and development projects in Artvin region of Turkey since The company closed the sale of 80%interests in its Turkish subsidiary, Akdeniz Resources Madencilik AŞ for $9 million to JV partner Çeka İnşaat ve Sanayi Ticaret AŞ. The joint venture with Çeka started well. In fact, had Çeka not made timely payments on the Company s behalf, prior to signing the joint venture, it was likely that the Company would have lost its licenses. Unfortunately, the mounting political risks have led Çeka to believe that even a more aggressive development schedule is the solution. Giving growing concern around the political climate, we believe the Property will have a better chance of succeeding with a domestic owner who has better access to capital. We continue to believe that the Property has tremendous potential, but given our financial position, we believe we are much better off selling the Property to Mr. Kaya. said the Company s President and CEO Robert Abenante. March 2015 Kazan Soda Project of Ciner Group was Awarded Turkish market leader in natural soda ash production, Ciner Group was given ECA Deals of the Year 2014 award by Trade & Forfaiting Review (TFR). As well as the size and the environmental sufficiency of the project, financing agreement between a subsidiary of Ciner Group, Kazan Soda Elektrik Üretim AŞ and China s Sinosure also made a contribution to the company to win the award. Ciner group, which has a production capacity of 1.1 million tons a year, wanted to ramp up its output and sought support for investment in a 2.7 million tons-a-year soda plant together with a gas-fired 800MW generation power plant in Turkey. The agreement is the largest Sinosure-covered longterm facility in Turkey at more than $1billion of financing, and Ciner Group is the first Turkish company which is funded by both Chinese and international banks at the same time. March 2015 Pilot Gold Acquired 60%of TV Tower Project International gold exploration company, Pilot Gold acquired 60%interests of TV Tower Project in Biga Region of Turkey. TV Tower is a joint venture between Pilot Gold (60%) and Teck Madencilik Sanayi Ticaret A.S. (Teck) (40%), which is a Turkish subsidiary of Teck Resources Limited. The TV Tower project has delivered four gold, silver and copper-gold discoveries over the past four years, and hosts numerous untested targets. The Company expects to start the 2015 program soon. The company s priority is to complete drilling operations. The Joint Venture company, which consists of the predecessor company of Pilot Gold, Fronteer Gold and Teck, has been working to define the potential of the district. On the other hand, Pilot Gold defined Turkey s 3rd largest silver deposit with significant gold credits in March 2015 Source: pilotgold.com MNG ORKO Buys Balogo Gold Project Turkish private gold exploration company, MNG ORKO announced an agreement with Golden Rim Resources to acquire its entire interests in Balogo Project for $10 million in staged cash payments, plus a 1%net smelter return.balogo is an advanced gold exploration project situated in southern Burkina Faso that will be managed by MNG Gold through its subsidiary MNG Gold Burkina Sarl. The Project, which is comprised of 2 joint licenses covering 360km 2 and 43,070m of drilling, has been completed to date. I 10 Spring 2015 am delighted to execute this acquisition agreement. Balogo is a high grade gold Project that Golden Rim has been able to develop to its current level through their professionally run exploration activities. We believe that the further funding that we are able to provide from our existing cash resources will enable us to improve upon the resource identified to date and the Project moved into production in a relatively short time frame. Balogo also demonstrates the first step of our gold mining investments in Burkina Faso. Our aim will be continuing to develop the Balogo Project with consideration of the environmental / social impacts and local community collaboration to commence production right after our Kokoya Project in Liberia commences production. Our pipeline of projects started with the acquisition of the Kokoya Project in 2014 and will continue with the Balogo Project purchase in line with our targets and strategies. said Serhan Umurhan, General Manager of MNG ORKO. March 2015

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14 Life Sentence Trial for Soma Mine Executives Turkish prosecutors demand a life sentence for the eight executives of Soma mine who are accused of being responsible for involuntarily causing 301 deaths in Soma coal mine. CEO of Soma Kömür İşletmeleri Can Gürkan, General Manager of Soma Kömür İşletmeleri Ramazan Doğru and six other executives face life sentence whereas prison sentence between 32 months and 20 years was demanded for the eight other company officials. According to the investigations in Soma mine, insufficiency of CO 2 detectors and quality oxygen masks and some other defects were revealed. 301 miners had died of carbon monoxide poisoning after the explosion in the mine. December 2014 Konya Şeker Won Soma B Thermal Power Plant Tender Konya Şeker won privatization of Soma B Thermal Power Plant and its properties tender for $685.5 million offer. Alsim Alarko Sanayi Tesisleri ve Ticaret Record Funding to Yıldırım Holding by UniCredit and EBRD Yıldırım Holding agreed with UniCredit and European Bank of Reconstruction and Development (EBRD) for company s Voshkod chrome mining complex in Aktobe, North-Western of Kazakhstan. The agreement was signed after an evaluation of health and safety, technical, taxational and judiciary criteria of Voshkod complex. The EBRD is considering a loan of up to US$130MM as part of a US$260MM A/B facility whereas the 50%of the loan will be financed by UniCredit. Credit agreement between Yıldırım Holding and EBRD was signed in London with presence Prime Minister of Kazakhstan Karim Massimov and executives of financial institutions on 23 February The loan will be used for reconstruction of Voskod complex and supporting environmental, operational and safety standards. Chrome production in Voshkod started in July 2009 and Yıldırım Holding acquired the complex at the end of The complex consists of an underground chrome mine and a processing plant. Mineral processing capacity of Voshkod is 1 million ton annually whereas its potential is 1.5 million tons. Our group accelerated metal and mining investments by acquiring Voshkod chrome complex in This loan is the longest term credit for a mining company as well as being the first international long-term credit of our company. We feel right pride of being the first company which takes a loan of this amount from EBRD. said Yüksel Yıldırım, CEO of Yıldırım Holding. March 2015 Eti Maden Aims to Reach $2.5 Billion Export Eti Maden, Turkish state-owned mining and chemicals company focusing on boron products, plans to invest $17 million in R&D studies in 2015 and aims to reach $2.5 billion by The company will employ around 2,500 people through this investment plan. Eti Maden has quadrupled its profit for the 5 years, thus the company plans to focus on R&D studies all year round. Increasing the market share of Eti Maden in world market and entering new markets rely on using of contemporary and modern technology, therefore R&D study investments are crucial. Keeping the world leader position in sector, permanence and constant growth underlie a proper R&D policy of the company. Besides, Eti Maden has been AŞ, Kalyon İnşaat Sanayi ve Ticaret AŞ, Konya Şeker Sanayi and Ticaret AŞ, Bereket Enerji ve Üretim AŞ participated to the tender. Soma B Thermal Power studying to supply foreign-dependent equipment in Turkey. said Orhan Yılmaz, Chairman of the Board of Eti Maden. We give weight to value-added boron in production process. In this context, concentrated products share has been decreasing in overall boron export while boron chemicals or equivalent products share has been increasing. said Yılmaz. He also stated that 5.5 million tons of boron chemicals and equivalents producing capacity and $2.5 billion revenue are aimed in According to Yılmaz, they expect a significant growth in their boron based detergent export. Yılmaz added Our R&D studies are in the lab scale but we produce in industrial scale and supply these products for international markets. Source:sendika.org Plant is a lignite fired thermal power plant which consists of 6 units with 165 MW installed power. January 2015 For example, boron oxide, calcined colemanite, calcined tincal, boron soda, Eti Matik, Boron Cleaning Product, glassy boron oxide, zinc borate consist some of our products. January 2015 Source:wikipedia.org 12 Spring 2015

15 Conference on Historical Mining Sites of Turkey Will be Held in Trabzon 1st Conference on Historical Mining Sites of Turkey (CHMT 2015) will be held on December , in Trabzon city of Turkey. After the presentation sessions and the official closing ceremony on December 4, the World Miners Day will be celebrated at beach complex of Karadeniz Technical University. Sightseeing and Technical tours in Trabzon and Gümüşhane cities will be organized on 3rd day of the conference.the aim of the conference is to be a platform for researchers of the topics of mining history and preservation of historical mining sites. It will be free to attend the conference presentations. The fee for dinner and sightseeing tours will be announced through 2nd draft.1st Conference on Historical Mining sites of Turkey is organized by Mining Engineering Department of Karadeniz Technical University, International Society for Rock Mechanics Commission on Preservation of Ancient Sites, Madencilik Türkiye Mining & Earth Sciences Magazine and International Society for Soil Mechanics and Geotechnical Engineering Asian Technical Committee on Geo Engineering for Conservation of Heritage Monuments and Historical Sites. CONFERENCE PROGRAM: 3 December Mining and Tunnel Engineering in History 13:00-13:30 Opening ceremony 13:30-15:20 Presentations (Session 1) 15:20-15:40 Coffee&Tea Break 15:40-17:30 Presentations (Session 2) 4 December Preservation of Historical Mining sites and Tunnels 13:00-14:50 Presentations (Session 3) 14:50-15:10 Coffee&Tea Break 15:10-17:00 Presentations (Session 4) 17:00-18:00 Music recital & Closing ceremony 18:00-23:00 Dinner & Celebrations of World Miners Day 5 December 2015 Sightseeing and Technical tours in Trabzon and Gümüşhane cities will be organized on 3rd day of the conference (Details will be in the 2nd draft) ORGANIZED BY: Mining Engineering Department of Karadeniz Technical University ISRM Commission on Preservation of Ancient Sites Madencilik Türkiye Mining & Earth Sciences Magazine ISSMGE Asian Technical Committee on Geo Engineering for Conservation of Heritage Monuments and Historical Sites ORGANIZING COMMITTEE: Prof. Dr. Ali Osman Yılmaz (Karadeniz Technical University, Turkey) Dr. Guo Qinglin (Dunhuang Academy, China) Dr. Zhang Jingke (Lanzhou University, China) Onur Aydın (Madencilik Türkiye Mining & Earth Sciences Magazine, Turkey) Eren Komurlu (Karadeniz Technical University, Turkey) Sener Aliyazicioglu (Karadeniz Technical University, Turkey) Fatma Sinem Özkan (Karadeniz Technical University, Turkey) Ali Osman Çakır (Karadeniz Technical University, Turkey) LANGUAGES AND PROCEEDINGS The official languages of this conference are Turkish and English. Turkish Proceedings should be sent with an abstract in English. Proceedings will be published with a special issue of MT Bilimsel Journal of Underground Resources as free to read online and download. Please, use the web site of journal to see writing norms ( com). To download guide for authors, the link is In addition to full manuscripts, English and Turkish abstracts booklet will be published. Please use the contact address given below for sending abstract and full manuscript. The conference can be followed on facebook ( com/chmt2015) IMPORTANT DATES Abstract Submission - 13 March 2015 Notification of Abstract Acceptance - 27 March 2015 Full Paper Submission - June 2015 Full Paper Notification - 24 July 2015 Revised Paper Submission - 4 September 2015 INTERNATIONAL SCIENTIFIC AND ADVISORY COMMITTEE: Prof. Dr. Ayhan Kesimal (Karadeniz Technical University, Turkey) Prof. Dr. Bahtiyar Ünver (Hacettepe University, Turkey) Prof. Dr. C. Okay Aksoy (Dokuz Eylul University, Turkey) Prof. Dr. Chen Wenwu (Lanzhou University, China) Prof. Dr. David Williams (The University of Queensland, Australia) Prof. Dr. Eduardo A.G. Marques (Federal University of Vicosa, Brazil) Prof. Dr. Erkan Topal (Curtin University, Australia) Prof. Dr. Ömer Aydan (University of the Ryukyus, Japan) Prof. Dr. Resat Ulusay (Hacettepe University, Turkey) Prof. Dr. Wang Xudong (Dunhuang Academy, China) Prof. Dr. Yoshinori Iwasaki (Geo-Research Institute, Japan) Assoc. Prof. Dr. H. Aydın Bilgin (Middle East Technical University, Turkey) Assoc. Prof. Dr. Bayram Ercikdi (Karadeniz Technical University, Turkey) Assoc. Prof. Dr. Guzin Gulsev Uyar (Hacettepe University, Turkey) Assoc. Prof. Dr. Melih Genis (Bulent Ecevit University, Turkey) Assoc. Prof. Dr. Mostafa Sharifzadeh (Curtin University, Australia) Ass. Prof. Dr. Ferdi Cihangir (Karadeniz Technical University, Turkey) Ass. Prof. Dr. Ibrahim Cavusoglu (Gumushane University, Turkey) CONTACT WITH: Eren Komurlu (PhD. Candidate) KTU Mining Engineering Department Trabzon Turkey [email protected]; [email protected] Phone: , Mobile: February 2015 Spring

16 Mining Sector Will Achieve its 2023 Goal through New Mining Law According to the announcement of Aegean Exporters Association, new mining law pleased Turkish mining sector with about $5 billion contribution to the sector and the sector is now one step closer to its $15 billion 2023 goal. Approval to Çöpler Sulphide Project by Alacer s Board Alacer Gold, a leading intermediate gold mining company with its Turkish subsidiary Anagold Madencilik, approved the Çöpler Sulphide Project for company s world class Çöpler Gold Mine. Board of Alacer Gold has approved advancement of the Project into detailed engineering and procurement of long-lead time items. Company would be waiting for obtainment of land use permits of the project to start Alacer Obtained Environmental Impact Assessment Report for Çöpler Sulphide Mine Alacer, a prominent metal miner of Turkey announced that the company obtained Environmental Impact Assessment (EIA) report by Turkish Ministry of Environmental and Urbanization. Alacer took an important step to increase its production to 3.2 million oz. over 20 years after obtaining the EIA report. The approval of the EIA represents a significant positive milestone for Çöpler and the Sulfide Project and demonstrates the ongoing support from the Turkish Ministry of Environment and Urbanization for Çöpler and the Project. The EIA approval is a further evidence that the Sulfide Project is fully on track and we can now begin the process of securing the necessary land use permits. In parallel with the land use permitting process, we will continue to advance basic engineering and de-risking efforts. With no debt and a growing cash balance of $320 million, Çöpler s high-margin production provides the platform to deliver on our strategy of becoming a sustainable mining operation with a focus on Turkey. said Rod Antal, Alacer Gold CEO. December 2014 Tigris Resources is Listed as Royal Road Minerals in TSX-V However, association has been waiting for cancellation of mining circular that obliges obtaining royalties directly to Prime Ministry.Mining Law No. 6592, which is vital for mining sector in terms of contributing natural resources to construction. The Board s decision to approve the advancement of the Sulfide Project represents a significant milestone for both the Çöpler Gold Mine and Alacer. We remain focused on further de-risking the Sulfide Project and I am confident that we have the resources and expertise in place to advance the Project into the execution phase. said Rod Antal, CEO of Alacer. April 2015 Royal Road Minerals, which is a gold and copper focused exploration and development company working in Western and Southeastern Regions of Turkey announced that its ordinary shares have been approved for listing on the TSX Venture Exchange, and will commence trading on April 20, 2015 under the ticker RYR. Listing is a challenge at the best of times but doing so at the bottom of a cycle is a test of conviction and evidence of the Company s commitment to its projects, people and plans. We are very grateful for the incomparable loyalty of our staff, for the understanding and support of our local partners and for the hard work and persistence of our financiers and our legal and accounting teams. said Dr. Tim Coughlin, President and CEO of Royal Road Minerals Ltd. April 2015 Turkish economy, was approved on 4 February 2015 by Turkish Parliamentary. The law was published in Official Gazette of Turkey on 18 February 2015 after President s approval. February 2015 Source:alacergold.com Source: lidyamadencilik.com.tr Source:royalroadminerals.com 14 Spring 2015

17 Turkey Becomes a Member of International Lead and Zinc Study Group (ILZSG) Turkey has joined to International Lead and Zinc Study Group (ILZSG), which is an effective international mining organization. According to the interview that was made by Mining Turkey Magazine, Selim Ergüder received a congratulation mail from ILZSG regarding the membership of Turkey. Membership of Turkey on behalf of Eti Maden has been approved in March Intervention of Ergüder, who was invited to study group as an observer member in Portugal in 2013, and the contribution of Deputy Undersecretary, Ministry of Energy & Natural Resources Nevzat Kavaklı, played an important role for this membership. TURKEY WILL ACQUIRE THROUGH THE MEMBERSHIP: Intergovernmental dialog about global zinc, lead and metal industry, Representing Turkey in global intellectual platforms, Short Stories... Following the recent developments and R&D studies of the global nickel and copper industries, Sharing the latest industrial innovations and technological developments with other group member countries, Attending to organizations where the results of ILZSG studies are shared with sector representatives, Acquiring about global supply and demand balance information, Obtaining raw material production and consumption in galvanize, iron, steel and automotive industries data, Acquiring a new vision in industrialized countries platforms. ABOUT INTERNATIONAL LEAD AND ZINC STUDY GROUP (ILZSG); ILZSG was formed by the United Nations in 1959 to: Provide opportunities for regular intergovernmental consultations on international trade inlead and zinc, Provide continuous information on the supply and demand position of lead and zinc and its probable development and to make special studies of the world situation in lead and zinc, Consider possible solutions to any problems or difficulties which are unlikely to be resolved in the ordinary development of world trade. The main role of the ILZSG is to ensure transparency in the markets for lead and zinc worldwide. This is achieved by producing a continuous flow of information to the market place on supply and demand developments in lead and zinc through the monthly publication of high quality statistics and in depth economic studies. We also organize international sessions and special conferences bringing together industry and governments to discuss matters of concern in the lead and zinc sectors. May 2015 Mining Law and Other Laws No Entered into Force Mining Law No was amended with the Law Amending the Mining Law and Other Laws No after approval of President of Turkish Republic, Recep Tayyip Erdoğan on 17 February New mining law was published in the Official Gazette of Turkey on 18 February February 2015 Odaş Enerji Started Gold Exploration Anadolu Export Maden Sanayi, subsidiary of Odaş Enerji announced an agreement with Stratex Madencilik that includes gold exploration and production. Completing gold exploration of Karaağaç district near Kütahya and Uşak, and investing through exploration results are included in terms of the agreement. February 2015 Merger between Park Elektrik and Silopi Elektrik was Cancelled Merger between two subsidiaries of Park Holding, Park Elektrik AŞ and Silopi Elektrik AŞ was cancelled. Reason for the cancellation was shown as the unexpected long process of the merger. February 2015 Aşkale Çimento Buys Sançim Bilecik Çimento Two important cement companies of Turkey agreed that the sale, and conveyance will be completed after competition authority s approval. Sançim Çimento has been acquired for $220 million by Çimsa Çimento before. January 2015 Coal Import of Turkey Reached Record High in 2014 According to data obtained from Montel-Foreks, coal import of Turkey reached to 29.8 million tons with a 12%increase in Turkey imports the majority of its coal from Russia and Colombia. February 2015 Alkim Continues R&D Studies Alkim Alkali Kimya, which is the largest sodium sulphate company of Turkey, Middle East, Northern Africa and Eastern Europe, has published a report regarding company s R&D studies and investment policy. Alkim will produce high quality and purity magnesium chloride solution, magnesium hydroxide, magnesium oxide and potassium chloride thanks to their recent studies. On the other hand, the company completed permits for a chrome processing plant. November 2014 Spring

18 Profile TyrFil: Flatproofing Solution to Tires Mining Turkey Magazine made an interview with Vice President of FKK Eyüp Altuncu and Director of Internatyional Sales of Arnco Pathway Fernando Bedos about TyrFil which is distributed over 7 countries including Turkey by FKK Group, and the partnership between FKK and Arnco Pathway. FKK was found in 1957 to produce automotive spare parts from metal and rubber. Today, the company produces more than 3000 type of products from SMR, NBR, EPDM, Vulkollan, Polyurethane, Polyamide and other elastomers in its three production units and supplies to automotive, mining, textile, construction, petroleum and earthmoving machinery industries. On the other hand, Arnco Pathway is a subsidiary of Accella Performance Materials, which is owned by Arsenal Capital Partners. In 1971, Arnco Pathway invented TyrFil, the world s first polyurethane tire fill material intended to flatproof tires. Since then, TyrFil has not only eliminated flat tires in the most hazardous industries, but has also been specifically formulated to promote safety by significantly reducing the transmission of G-Force vibrations. According to Bedos, TyrFil is a liquid polyurethane that has two components: polymer and catalyzer. It is injected to the tires, then the chemistry starts and after 24 hours it takes its elastic form. He added, For the sake of good order, there is no more air in the tire, and the tire becomes flatproof. TyrFil is widely used in mining, construction, airport, sports, military applications etc. We present in 65 countries, and we are happy that FKK is our partner in Turkey. Altuncu states that FKK and Arnco Pathway has started a JV for Turkish market and six other markets. FKK is the distributer of Arnco Pathway in these countries. He also mentioned that steel industry, mining industry and airport industry consist their major customer profile. Bedos expresses his opinions about MINEX: Fair is a perfect opportunity for us to present our products, to open the eyes of OEM s. It is a perfect venue for us to see other manufacturers, clients, products etc. and make them know about our products. CONTACTS FKK Güney Oto Lastik A.Ş. [email protected] Web: 16 Spring 2015

19 15th 17th June, 2015 Turkey Istanbul Excellent opportunity to meet and discuss mutual challenges in the mining industry, especially those challenges that if overcome, could enable significant value generation for the future of mining Paul Roos, Vale Special discount for Madencilik Turkiye Magazine readers. Book now and save up to 25% off the standard price. Use discount code: UB927MTM

20 Article Industrial Mineral and Natural Stone Export of Turkey in 2014 After a sharp decline in Turkish export value in 2009, it started to accelerate in positive direction. This positive trend came up with a short break in 2013 yet overall export increased to $157.6 billion in Meanwhile, total mining export had been increasing proportionally between 2009 and Although a positive trend occurred in overall Turkish export, mining export value decreased to $4.6 billion in Figure 1 shows that total mining export share on overall export dropped to 2.9%in 2014 comparing to 3.3%in On the other hand, natural stones and industrial minerals constitutes the Source: robonik.com.tr Overall Export Value (1000 USD) Mining Export Value (1000 USD) Mining Export Share on Overall Export (%) Mineral Export Distribution Figure 2 Top 10 Turkish Mineral Importers 18 Figure ,027, ,142, ,685, ,571, ,860, ,707, ,622,057 3,241,019 2,508,609 3,655,300 3,876,465 4,181,381 5,042,322 4,646, Spring 2015 Figure 1 Natural Stones Industrial Minerals Others Metalic Minerals PRC USA Italy Belgium Iraq Saudi Arabia İndia Spain Russian Federation Netherlands Others majority of Turkish mineral export. Figure 2 shows that 46%and 18%of total mineral export consists of natural stones and industrial minerals respectively. Variety of natural stones and industrial minerals in Turkey has been exciting importing countries attention recently, and more than 25 varieties of natural stones and industrial minerals are exported worldwide every year. Mineral potential of Turkey has been attracting industry giants of the world. China and USA, which are ranked 1st and 2nd respectively with their industrial outputs among the world s most industrialized countries, have imported the majority of Turkish minerals by 70.9%in 2014 (Figure 3). These countries are followed by Belgium, Italy, Iraq and Saudi Arabia respectively. Marble kept the leading position as most exported Turkish natural stone and industrial mineral with a value of 4.8 billion kg in 2014, despite a significant drop in marble export (12.3%) between 2013 and 2014 (Figure 4). On the contrary, feldspar export increased by 11.3%and reached to 4.5 billion kg in 2014 but due to decline in feldspar price, total feldspar income of Turkey increased by 9.5%. Turkey is the primary source of world s borate and boric acid demand. Although unit borate and boric acid price remained close to previous years unit price, total borate and boric acid export of Turkey increased by 14.9%in 2014 comparing to 2013, and consequently Turkey CONTACTS Hazal Birses Mining Turkey Magazine Petroleum and Natural Gas Engineer, [email protected] Web:

21 obtained more than $266 million income from boron product s export million kg of gypsum were exported in 2014, which is 13.9%less than 2013 export value. The decrease was resulted in a $12 million loss in Turkish economy with respect to 2013 value. On the other hand, quartz export contributed to Turkish economy positively in Quartz export of Turkey increased by 10.8%in amount and 20.6%in value. Another important mineral recovered in Turkey is perlite. As Turkey is the second largest perlite supplier of the world after Greece, perlite export tends to increase every passing year; thus perlite export reached to 418 million kg ($25.4 million) in Despite a decrease in bentonite export amount, export value increased by 3.2%in 2014 due to increase in bentonite price. One of the most significant increase in mineral export of Turkey occurred in barite with 28.9%in Other outstanding changes in mineral and natural stone export of Turkey take place in salt, sulphur and sepiolite exports. On the other hand, graphite, soda ash and diatomite exports faced a significant drop in Besides, although 19%increase occurred in granite export in amount, total income dropped 9.2%due to granite price in In the meantime, import values of some of these minerals and natural stones take attention unexpectedly. Although magnesite, barite, kaolinite, sulphur, salt and feldspar are ranked in Top 20 exported industrial minerals and natural stones of Turkey, significant amount of these minerals was imported imported by Turkish industry in Turkey based minerals and natural stones such as marble, boron derivatives and perlite were not affected from this situation. For example, boron derivatives import was only kg and perlite import was 1.4 million kg in 2014 Product INDUSTRIAL MINERALS AND NATURAL STONES EXPORT OF TURKEY Export - Amount 2014 (kg) 2013 (kg) 2014 ($) 2013 ($) Export - Value Change in Amount Change in Value Marble 4,897,548,418 5,704,375, ,951,933 1,120,397, % -12.9% Feldspar 4,559,460,171 4,096,543, ,621, ,146, % 9.5% Borate, Boric Acid 848,590, ,429, ,745, ,974, % 14.5% Gypsum 813,653, ,161,533 77,718,780 90,068, % -13.7% Quartz 442,808, ,494,744 62,580,166 51,869, % 20.6% Perlite 418,095, ,217,222 25,478,527 22,316, % 14.2% Bentonite 370,153, ,862,684 47,899,135 46,402, % 3.2% Magnesite 303,434, ,800, ,868, ,480, % -3.5% Barite 273,831, ,516,491 39,783,642 31,988, % 24.4% Salt 158,951,859 90,192,484 18,288,722 12,335, % 48.3% Granite 140,282, ,928,261 17,850,462 19,667, % -9.2% Pumice 129,621, ,831,071 9,883,033 8,508, % 16.2% Kaolinite 117,303,902 91,340,586 4,056,305 3,255, % 24.6% Sulphur 62,813,898 47,707,119 10,373,839 6,765, % 53.3% Dolomite 53,593,768 47,589,716 6,371,366 5,603, % 13.7% Diatomite 46,444,956 55,444,644 3,164,155 3,963, % -20.2% Slate 5,347,497 4,628, , , % 12.8% Steatite 3,379,515 3,404,869 1,331,379 1,381, % -3.7% Leucite 2,926,297 8, ,928 5, % % Calcium Phosphate 1,301,727 1,128, , , % 19.4% Graphite 662, , ,505 1,270, % -24.4% Mica 572, , , , % -15.9% Soda Ash 395, , , , % -7.9% Sepiolite 197,201 45,841 52,511 18, % 177.9% Figure 4 Source: wikipedia.org Spring

22 MARBLE EXPORT BY COUNTRY Country Export Amount (kg) Export Value ($) Country Export Amount (kg) Export Value ($) No China China India India Syria Syria Taiwan Egypt Egypt Taiwan Jordan Greece Italy Jordan Indonesia Italy Greece Lebanon Hong Kong Indonesia As Chinese investors have acquired more than 100 marble quarries in Mediterranean region of Turkey, which is a critical region for Turkish marble sector, most of the marble has been exported to China. However, Chinese marble import dropped by 16.9%between 2013 and Except from China, India, Syria, Egypt and Taiwan are listed in the top of the Turkish marble importers ranking respectively in 2014 (Figure 5). Figure 5 FELDSPAR EXPORT BY COUNTRY Country Export Amount (kg) Export Value ($) Country Export Amount (kg) Export Value ($) Turkey s most exported industrial mineral, feldspar has been mostly demanded by Italy. Italy s feldspar import reached to 1.9 billion kg in 2014 with a slight increase. Other Mediterranean country, Spain, took 2nd place in 2014, and followed by Russia, Bulgaria and Egypt. (Figure 6) No Italy Italy Spain Spain Russian Federation Russian Federation Poland Bulgaria Bulgaria Egypt Egypt Poland Saudi Arabia Tunisia Netherlands Ukraine Belarus Netherlands Ukraine Israel Figure 6 BORATE and BORIC ACID EXPORT BY COUNTRY Country Export Amount (kg) Export Value ($) Country Export Amount (kg) Export Value ($) No China China USA USA Taiwan Taiwan Spain India India Spain Romania Austria Japan Japan Belgium Malaysia Malaysia Russian Federation China, USA, Taiwan, India and Spain remain in the top of the list as the major borate and boric importers of Turkey (Figure 7). Although Austria did not take any place in the Top 20 borate and boric acid importers list in 2013, the country imported 30 million kg borate and boric acid from Turkey in Besides, Netherlands, France and Romania also take attention by entering the Top 20 ranking in Russian Federation Netherlands Figure 7 Source: hurriyet.com.tr

23 Source: acgmaterials.com Russian Federation remains as the top Gypsum importer of Turkey in Russia imported $19.8 million of gypsum comparing to $25.8 million in Nigeria, Ukraine, Georgia and Iraq stand in the leading positions of the Top 20 gypsum importers ranking in 2014 as in 2013 (Figure 8). GYPSUM EXPORT BY COUNTRY Country Export Amount (kg) Export Value ($) Country Export Amount (kg) Export Value ($) No Russian Federation Russian Federation Ukraine Nigeria Nigeria Ukraine Iraq Georgia Georgia Iraq Azerbaijan Bulgaria Turkmenistan Turkmenistan Bulgaria Azerbaijan Lebanon Israel Israel Lebanon Figure8 QUARTZ EXPORT BY COUNTRY Country Export Amount (kg) Export Value ($) Country Export Amount (kg) Export Value ($) No Russian Federation Russian Federation Ukraine Nigeria Nigeria Ukraine Iraq Georgia Georgia Iraq Azerbaijan Bulgaria Turkmenistan Turkmenistan Top two quartz importers were Israel and Spain in this order both in 2013 and Quartz import of Israel, Iceland and Vietnam increased by 14.2%, 8.8%and 140.5%respectively, but quartz import of Spain, Norway and USA declined by 8%, 71.1%and 29.1%respectively in 2014 (Figure 9). 8 Bulgaria Azerbaijan Lebanon Israel Israel Lebanon Figure 9 PERLITE EXPORT BY COUNTRY Country Export Amount (kg) Export Value ($) Country Export Amount (kg) Export Value ($) There was not a significant change in ranking of the Top 20 perlite importers in 2014 (Figure 10). Russian Federation moved up to the top of the list with a 25%increase in total perlite import while perlite import of Belgium declined by %24.5 this year. Apart from these countries, Poland, which imported more than 1.6 million kg of perlite for $150,000 became the new perlite demander of Turkey in No Belgium Russian Federation Russian Federation Belgium Italy India India Italy South Korea Spain Spain South Korea Brazil China China Saudi Arabia Saudia Arabia Brazil Denmark England Figure 10 Spring

24 Source: kavga.net BENTONITE EXPORT BY COUNTRY Country Export Amount (kg) Export Value ($) Country Export Amount (kg) Export Value ($) No Netherlands Netherlands Italy Italy Germany Germany Poland Egypt England Poland France England Egypt Saudia Arabia Netherlands, Italy and Germany, top three bentonite importers, kept their rankings in Top 20 list in 2014 (Figure 11). Bentonite import of Netherlands, Italy and Egypt increased by 20%, 7.5%and 28.6%respectively; on the other hand, Germany, Poland and England imported 38.8%, 61.3%and 34.1%less bentonite respectively in Austria Austria Thailand Indonesia Indonesia India Figure 11 MAGNESITE EXPORT BY COUNTRY Country Export Amount (kg) Export Value ($) Country Export Amount (kg) Export Value ($) Majority of Turkish magnesite was exported by European countries in 2014 (Figure 12). Although Austria, which has been the most important magnesite importer recently, decreased its import by 7.2%, Turkey earned $44.5 million from Austrian magnesite import in 2014 No Austria Austria Germany Germany Ukraine Ireland Greece Ukraine Ireland Greece Italy England England India USA USA South Africa Mexico Mexico Italy Figure BARITE EXPORT BY COUNTRY Country Export Amount (kg) Export Value ($) Country Export Amount (kg) Export Value ($) No Iraq Egypt Egypt Spring 2015 Saudi Arabia Azerbaijan Iraq Israel Romania Poland Italy Italy Malta Germany Poland Finland Turkmenistan Georgia Georgia Romania Germany Figure 13 Meanwhile, magnesite import of China, FYR Macedonia and Romania exceeded 1 million kg and these countries also ranked in Top 20 list in 2014.Barite export of Turkey shows inconsistent trend in terms of importer countries (Figure 13). For example, Azerbaijan ranked in 3rd position among all barite importers in However import of Azerbaijan declined by 94%and the country fell down to 19th position. On the contrary, Saudi Arabian barite import increased from 30,000 kg to 33.3 million kg between 2013 and REFERENCES: tuik.gov.tr immib.org.tr

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26 Article Industrial Minerals and Rocks of Turkey Production Assessment and Implications Though nowadays Turkey is a hot exploration and mining point for precious and base metals in the Tethyan Metallogenic Belt, especially gold and copper, she has also been the major producer of the some industrial raw materials, e.g., boron, barite, bentonite, feldspar, magnesite, perlite, and pumice. Recently the country became one of the major producers of trona, used for production of soda ash, as well. The country once was a major producer of celestite, but production significantly declined and ceased since It is worth mentioning that Turkey ranks as the top producer of cement in Europe and fifth in the world. In this synopsis industrial minerals and rocks of Turkey are evaluated using the author s proprietary GIS (Geographic Information System) database called Turkish Mineral Deposit Database (TMDD). The 62%of the total land area. Volcanic and plutonic rocks cover 22%of the land area and metamorphic and ophiolitic rocks cover the rest of the land area, 16% (Fig. 3). Especially late Cenozoic shallow-water lacustrine environments with accompanying volcanism form some of the world-class industrial mineral deposits of the country, e.g., borate and trona. 42 N 40 N 38 N 26 E 30 E 34 E Figure 1. Thematic map showing spatial distribution of the industrial mineral deposits in Turkey with background DEM overlain by major rock types, Lambert Conformal Conic Projection for Turkey, scale accurate for the location s latitude. 38 E Explanation Industrial Minerals Alunite Asbestos Barite Boron Disthene Feldspar Fluorite Graphite Kaolinite Magnesite Mica Pyrophyllite Pyrophyllite, Disthene Quartz Sepiolite Silex Soda Water Sodium Strontium Sulfur Talc Trona Vermiculite kilometers Rock Types Wollastonite Sedimentary Zeolite 42 E Volcanic/Sedimentary Volcanic Plutonic Ophiolitic Metamorphic Intrinsic nature of industrial minerals and rocks is that the majority of them are high volume but low price. Thus, most of them have a high-place value; location of the mine should be close to the market because of the high impact of transportation costs on the total production cost. A peninsula surrounded by Black Sea, Marmara Sea, Aegean and Mediterranean Seas with a large number of industrial ports linked by a rail network and ever increasing kilometers of highways, Turkey has a modern transport infrastructure linking Europe to Asia. Turkey, on the doorstep of Europe, with an abundant variety of industrial raw materials and large prospective land area, approximately 0.8 million square kilometers, is a major player with a unique position in the market with competitive prices. 24 Spring 2015 TMDD contains more than 12,000 deposits and prospects, including metallic, industrial, and energy raw materials. Some of the industrial minerals with both industrial and metallurgical uses, e.g., bauxite and chromite, are already mentioned in mineral deposits of Turkey by Yigit (2009), and therefore they are not mentioned in this paper. The complicated geologic and tectonic history related to Tethyan evolution has produced the wide spectrum of metallic, industrial and energy raw materials in the country. Industrial minerals and rocks are given separately in Figures 1 and 2 for simplicity. In Turkey, majority of the land area is covered with sedimentary rocks, forming The country produces a wide variety of industrial minerals associated with Fig. different 1 geological and tectonic settings (Fig. 1 and 2). These include alunite, asbestos, barite, boron, disthene (=kyanite), feldspar, fluorite, graphite, kaolinite, magnesite, mica, pyrophyllite, quartz, sepiolite, silex, soda CONTACTS Özcan Yiğit SEG Fellow, received his PhD from Colorado School of Mines, has worked for many major mining/exploration companies and is currently associate professor of Economic Geology at Canakkale Onsekiz Mart University, Turkey. [email protected]

27 42 N 40 N 38 N Explanation Industrial Rocks Bentonite Brick-tile raw materials Cement raw materials Clay Diatomite Dolomite Emery Gypsum Limestone Marble Perlite Phosphate Pumice Quartz Sand Quartzite Refractory clay Sand and gravel 26 E 30 E 34 E 38 E Rock Types Sedimentary kilometers Volcanic/Sedimentary Volcanic 42 E Plutonic Ophiolitic Metamorphic Figure 2. Thematic map showing spatial distribution of the industrial rock deposits in Turkey with background DEM overlain by major rock types, Lambert Conformal Conic Projection for Turkey, scale accurate for the location s latitude. water, sodium, strontium, sulfur, talc, trona, vermiculite, wollastonite, and zeolite (Fig. 1). Industrial rocks produced include bentonite, brick-tile raw materials, cement raw materials, clays, gypsum, limestone, marbles [dimension stones], perlite, phosphate, quartz sand, quartzite, refractory clays, and sand and gravels (Fig. 2). Though there are many diverse commodities mined in Turkey, the country is a major player in the world for some industrial minerals and rocks. The country is the leading producer of boron (Fig. 4) and has 72.5 %of the world s boron reserves, a total of Mt B Boron is the only commodity in Turkey that is controlled by a state-owned mining company called Eti Maden. The major producing mines are located in northwestern Turkey, from west to east, Bigadic in Balikesir, Kestelek in Bursa, Emet in Kutahya, and Kirka in Eskisehir districts. Bigadic district produces colemanite and ulexite ore, Kestelek and Emet districts produce colemanite ore, and Kirka district produces tincal ore. Eti Maden produced 47.2 %of the world boron in 2012 and had 46 %of the world boron market share allocation. Turkey has become one of the largest producers of natural soda ash, trona, since Trona production reached Mt in 2012 (Fig. 5). The country has significant reserves of trona in Beypazari and Kazan deposits in Ankara, central Turkey. The Beypazarı trona deposit has 236 Mt at 70 to 90 %Na 2 CO 3 reserves, and recently discovered Kazan deposit has 607 Mt ore at 31 %trona. Other industrial minerals with significant production in world standards, based on the USGS Mineral Commodity Summaries and Minerals Yearbooks production data, in the last decade ( ) are barite, kaolin, feldspar, magnesite including hydromagnesite, salt including rock, solution, and evaporites as well as magnesium salts, sodium sulfate and zeolite. Barite production of the country jumped up to Mt in 2012 from 0.25 Mt in 2011 (Fig. 6). Feldspar production had reached Mt at the end of the decade (Fig. 7). The country % Rock Types by Land Area (thousand sq km) % 2% 5% 86 11% % Sedimentary Volcanic Metamorphic Fig. 2 Volcanic/Sedimentary Ophiolitic Plutonic Figure 3. A doughnut chart showing land area of the major rock types, and their corresponding allocations to total land area. Boron Produc on / Mt 7.0M 6.0M 5.0M 4.0M 3.0M 2.0M 1.0M 0.0M Years Figure 4. Histogram showing boron production of Turkey, data for the last decade ( , the most recent available data) in this and following histograms are from Turkish Mining Bureau (MIGEM). has produced a large amount of kaolin from many small operations, reaching Mt in 2012 (Fig. 8). The largest kaolinite deposit in Turkey is located in Duvertepe in Balikesir northwest Turkey, containing 63.7 Mt at 13 to 33 %Al 2 O 3. Magnesite and hydromag Spring Fig. 4 Fig. 3

28 nesite production figures reached up to Mt in 2011 and Mt in 2012 (Fig. 9). Total salt production from rock salt, solution salt, evaporitic salt and magnesium salt mines steadily increased in the last decade and had reached Mt in 2011 and Mt in 2012 (Fig. 10). Sodium sulfate production reached a peak in 2011 with Mt production (Fig. 11). Zeolite production has been up and down in the last decade, highest productions were in 2005 and 2011 with kt and kt respectively (Fig. 12). Additionally with global interest in graphite in recent years, the country s total production increased up to 31.5 kt in Though the country produces many different industrial rocks (Fig. 2), some of the industrial rocks with considerable amount of production in world standards include bentonite, gypsum, perlite, and pumice. Bentonite production peaked in 2007 with Mt and was Mt in 2012 (Fig. 13). Gypsum, perlite and pumice productions steadily increased and were Mt, Mt and Mt respectively in 2012 (Fig. 14, 15 and 16), reflecting the dynamic nature of the country s construction industry in recent years. Turkey is the leading producer and exporter of pumice. The country is one of the largest producers of cement and construction raw materials including limestone, sandstone, marl, clay, pyrophyllite, trass, schists, bitumen schist, other cement raw materials, construction fillers, brick-tile clays and dolomite. Total production of cement and construction raw materials reached Mt in 2012 (Fig. 17). Trona Produc on / Mt M 1.8M 1.6M 1.4M 1.2M 1.0M 0.8M 0.6M 0.4M Spring M M Figure 5. Histogram showing trona production Years of Turkey in last decade. 10.0M M 8.0M M M 5.0M M M 2.0M 1.0M 0.0M Fig Figure 7. Histogram showing feldspar Years production of Turkey in last decade. Feldspar Production / Mt Turkey is within the top five producers of dimension stones in the world. Production figures for dimension stones including ignimbrite, marble, onyx, and travertine in 2011 and 2012 were Mm 3 and Mm 3 respectively (Fig. 18). Production of other natural stones including andesite, basalt, granite, slate, serpentinites, diabase, and miscellaneous construction stone increased significantly in recent years and was Mt in 2012 (Fig. 19). Industrial minerals and rocks market in Turkey is largely controlled by Turkish companies, unlike precious and base metal exploration and mining. Many of the companies are relatively small in size but recently they have been involved with government agencies as well as foreign companies to take advantage of the bullish mining market. Some of the major industrial raw material companies in the country have already expanded their operations to other countries. The proven track record of production capacities and large underexplored prospective land area with great mineral exploration potential, amplified by a well-established infrastructure on the doorstep of Europe, testify to the fact that the country is and will be a strong player in the industrial minerals and rocks market for a long time to come. As in the global mineral industry, industrial mineral sector will be facing some environmental challenges in the coming decades, though they are not affected as much as metal mining, e.g., gold, at the moment in Turkey. Mining, extraction, processing and transport of minerals cause significant effects on land use and level of carbon footprint. Minerals can only be worked where Barite Production / Mt 1.8M 1.6M 1.4M 1.2M 1.0M 0.8M 0.6M 0.4M 0.2M M Figure 6. Histogram showing barite production Years of Turkey in last decade. Kaolin Production / Mt 4.0M 3.5M 3.0M 2.5M 2.0M 1.5M 1.0M 0.5M 0.6 they occur, and industrial minerals of Turkey will become more critical for nearby demanding markets, e.g., densely populated developed EU countries as well as developing countries in the surrounding region. It appears that Turkey will have a bright future for industrial minerals since being close to the market will bring advantages of competitive prices and positive impact on environment, i.e., reducing carbon footprint. Industrial mineral companies in Turkey, especially junior, mid-tier, and even some majors, have neglected mineral exploration for years and focused only on production of the known reserves. It is time that industrial mineral companies in Turkey should take mineral exploration seriously, as in the metal mining business, and they should take steps to be prepared. They should invest in research and development, in this case mineral exploration, to define new reserves and/or resources rather than depleting existing reserves or making acquisitions. Since most of the big and easy targets have already been mined or taken, future success will come to the industrial mineral companies with the largest reserve and/or resource base. REFERENCES Yigit, O., 2009, Mineral deposits of Turkey in relation to Tethyan Metallogeny: implications for future mineral exploration, Economic Geology, v.104, p *An earlier version of this article was published in Industrial Minerals in M Years Figure 8. Histogram showing kaolin production of Turkey in last decade Fig. 6

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30 Magnesite+Hydromagnesite Production / Mt M 2.5M 2.0M 1.5M 1.0M 0.5M 0.0M Years Figure 9. Histogram showing magnesite and hydromagnesite production of Turkey in last decade. Salt Production / Mt 7.0M 6.0M 5.0M 4.0M 3.0M 2.0M 1.0M 0.0M Years Figure 10. Histogram showing salt production of Turkey in last decade. Sodium Sulfate Production / Mt 3.0M 2.5M 2.0M 1.5M 1.0M 0.5M 0.0M Spring Fig. 9 Fig. 10 Years Figure 11. Histogram showing sodium sulfate production of Turkey in last decade. Zeolite Production / kt 0.3M 0.3M 0.2M 0.2M 0.1M 0.1M 0.0M Fig. 11 Years Figure 12. Histogram showing zeolite production of Turkey in last decade. Bentonite Produc on / Mt 2.0M 1.8M 1.6M 1.4M 1.2M 1.0M 0.8M 0.6M 0.4M 0.2M 0.0M Fig. 12 Figure 13. Histogram showing bentonite Years production of Turkey in last decade. Gypsum Produc on / Mt 9.0M 8.0M 7.0M 6.0M 5.0M 4.0M 3.0M 2.0M 1.0M 0.0M Years Figure 14. Histogram showing gypsum production of Turkey in last decade. Perlite Produc on / Mt 1.0M 0.9M 0.8M 0.7M 0.6M 0.5M 0.4M 0.3M 0.2M 0.1M 0.0M Fig. 14 Years Figure 15. Histogram showing perlite production of Turkey in last decade. Pumice Produc on / Mt 7.0M 6.0M 5.0M 4.0M 3.0M 2.0M 1.0M 0.0M Fig. 15 Years Figure 16. Histogram showing pumice production of Turkey in last decade. Cement and Construction Raw Materials Produc on / Mt 500.0M 450.0M 400.0M 350.0M 300.0M 250.0M 200.0M 150.0M 100.0M 50.0M 0.0M Years Figure 17. Histogram showing cement production of Turkey in last decade. Dimension Stones Produc on / M3 Natural Stones Produc on / Mt 7.0M 6.0M 5.0M 4.0M 3.0M 2.0M 1.0M 0.0M 30.0M 25.0M 20.0M 15.0M 10.0M 5.0M 0.0M 1.5 including ignimbrite, marble, onyx, travertine 1.8 including andesite, basalt, granite, slate, serpentinites, diabase, and miscellaneous construction stone Years Fig. 16 Fig. 17 Figure 19. Histogram showing natural stones production of Turkey in last decade Years Figure 18. Histogram showing dimension stones production of Turkey in last decade Fig. 18

31 Magazine on Turkish Mining Sector in English

32 Article Another Step Forward In The Mining Industry The long awaited amendments to the Mining Law No (the Mining Law ) have now been enacted paving the way for a better and more serious practice in the Turkish mining industry. As discussed earlier in Volume 4 of Mining Turkey Magazine, amendments to the Mining Law have been in the agenda of the Turkish government for almost a year and finally entered into force on 18 February 2015 with the enactment of Law No (the Amendment ). The Amendment brings significant changes especially in terms of fees, securities, royalty agreements, supervision of activities, sanctions, permitting process and transfer of licenses which basically expedites permitting process and increases the costs associated with mining operations. A. MINE GROUPS The Amendment re-classifies the mine groups by removing Group VI and listing radioactive minerals such as uranium, thorium and radium as Group IV. B. THE FEES The Amendment introduces a new fee system where only one payment under the name of annual license fee is foreseen. The current payments of security deposit and the environmental compliance security are abolished. The annual license fees shall be calculated in accordance with the relevant mineral group and the size of the area covered by the mining license, instead of the previously fixed annual license fees. The new license fee mechanism will be applicable to existing licenses starting from 1 January C. STATE ROYALTY The Amendment brings changes in the state royalty amounts especially for Group IV mines, which aims to work in parallel with the variations in prices. The new royalty amounts provided under the Amendment cannot be less than the annual license fee, except for resource salts. In relation to gold, silver, platinum, chrome, lead, copper, zinc, aluminium and uranium oxide which are classified as Group IV mines, the Amendment provides for increasing percentages from 2%to 16%depending on the London Stock Exchange pricing per ounce. For instance, for gold mines, the pricing and accordingly the state royalty changes in a range between US$ 800 and US$ The new royalty amounts for the other groups are as follows: Calculation of the pit head sale price was unclear in the legislation and was being calculated in accordance Group of the Mine D. TERM OF THE OPERATION LICENSE The Amendment decreases the upper thresholds for operation licenses (i.e. 30 years for Group I, 40 years for Group II, and 50 years for the other groups of mines). The Minister of Energy and Natural Resources is authorized to extend the term of mining licenses for Group I and Group II; whereas, the Council of Ministers is authorized to provide an extension for other group of mines. The terms provided before the Amendment will continue to apply to the currently existing licenses. E. ROYALTY AGREEMENTS One of the most important changes brought with the Amendment is the prohibition on entering into royalty agreements between license holders of underground coal mines and third parties. Otherwise, the operations under the relevant royalty agreements would be suspended. This prohibition does not apply to public authorities and royalty agreements for other mining activities Royalty over pit-head sale price Before the Amendment After the Amendment 1. Group I 4% 4% Group II (a) 4% 4% Group II (b) 2% 4% Group II (b) if extracted ores are processed into a final product in the facilities of the license holder in Turkey 1% N/A Group II (c) N/A 4% Group III (except for resource salt) 4% 5% Group III (resource salt) 4% 1% Group IV (excluding gold, silver, platinum, chrome, lead, copper, zinc, aluminium and uranium oxide) 2% 2% Group IV (radioactive minerals except for uranium oxide) N/A 8% Group IV (c) if extracted ores are processed into a final product in the facilities of the license holder in Turkey 1% 50%discount 5. Group V 4% 4% Since security deposit is abolished, forfeiture of security deposit is now replaced with administrative fines. Where the forfeiture of the security deposit is in question, the license holder will be imposed an administrative fine in the amount of TL 10,000 50,000 which shall be revised by the Ministry of Finance annually. 30 Spring 2015 with the practice of the Mining Department. With the enactment of the Amendment, a clear calculation method is provided which will be determined in accordance with the mineral group and the region to be announced by the Mining Department each year. CONTACTS Göknil Ceylan Associate, Akol Avukatlık Bürosu [email protected]

33 have been subjected to the approval of the Ministry of Energy and Natural Resources. In relation to the existing royalty agreements, the Amendment provides that the existing royalty agreements shall be notified to the Mining Department by 18 May 2015; otherwise, operations under the relevant existing royalty agreements would also be suspended. F. COMPLETION OF NECESSARY PERMITS WITHIN THREE YEARS The disputed cancellation sanction envisaged for operation license holders, who cannot complete, within three years, the environmental permits and surface rights is abolished. Instead of cancellation, an administrative fine in the amount of TL 50,000 is envisaged for each year of delay in obtaining the G. TRANSFER OF MINING LICENSES Pursuant to the Amendment, transfer of mining licenses shall be subject to the approval of the Ministry of Energy and Natural Resources, which was previously subject to the affirmative opinion of the Mining Department. The fee to be paid during the transfer is also increased by the Amendment (i.e., two times of the annual license fee). H. CONCLUSION The amendments to the Mining Law have been in the agenda of the government for a long period; however, they had been withdrawn from the Parliament s agenda upon the tragic Soma accident since priority was given to other amendments to the Mining Law such as prohibition on subcontracting of mining works, providing more strict rules with regard to health and safety. Eventually, in February 2015, with certain changes to the previous drafts, the Amendment, which aims for the mining sector to be operated by actual investors, entered into force. We understand that different than the previous drafts, the Amendment has been prepared in consultation with mining industry operators providing for positive developments in the sector in the long run. by ISSN Madencilik ve Yer Bilimleri Dergisi relevant permits. In the event the required permits cannot be obtained during the term of the operation license, the term of the license shall not be extended. License holders who have applied for the required environmental permits but not yet obtained them as of the date of the Amendment, shall be imposed an administrative fine in the amount of TL 30,000. ISSN: Mining & Earth Sciences Magazine Fiyat 8 TL 15 Temmuz 2014 Yıl 5 Sayı 40 April 2014 Vol 3 Number Review of theturkish Mining Sector A Decade of Modern Gold Exploration in the Ancient Land of Turkey Overview of Lignite in Turkey T.C. Enerji Bakanlığı - Güvenli Yer Altı Madenciliği Çalıştayı Soma Faciası, İş Kazaları ve Madencilik Türkiye de Elektrik Üretiminde Kömür Kullanımı ve Stratejik Önemi Madencilik Türkiye has been the most prestigious and most recognized mining and earth sciences magazine of Turkey since Tünel Teknolojisi provides you a peerless platform to promote your company to tunneling sector of Turkey. Mining Turkey, which is the First and Only English mining and earth sciences magazine of Turkey, expands Turkish mining industry overseas. Magazines of Mayeb Ltd.31 Spring 2015

34 Article Effective Roadheader For Coal Mining with a variety of safety equipment, from lights, helmets, masks, goggles and boots to the life saving breathing apparatuses that are vital in the event of a methane leak or underground fire. Then they take a two minute ride on a high speed elevator 600 metres down into the earth. After that a small, four car train that runs throughout the mine s labyrinth of tracks and corridors transports them further downward for about 10 minutes until they reach paths that are accessible only on foot. There are no dragons here. No dwarfs or net extraction of around 21,700 tonnes ogres either, but from the dark depths of coking coal. of EFFECTIVE the BoryniaZofiówkaJastrzębie ROADHEADER coal FOR COAL mine MINING in Poland, 21,700 tonnes of coking coal are expertly and efficiently Established in April 1993, JSW ABOUT JSW SA extracted every day. Jastrzębiezdrój, SA comprises five mines that extract coking coal and steam coal: Poland. JASTRZĘBIE ZDRÓJ, POLAND. There Borynia are no dragons Zofiówka here. Jastrzębie, No dwarfs Budryk, The or Borynia ogres Zofiówka either, but Jastrzębie from the coking dark depths Krupiński, of the Borynia Zofiówka Pniówek and Knurów coal Jastrzębie mine sits coal in Jastrzębie mine in Poland, Zdrój, the 21,700 Szczygłowice. tonnes of coking The company coal are processes heart expertly of coking and coal efficiently mining extracted in Poland, every day. about 50 percent of the coking about The Borynia Zofiówka Jastrzębie 60 kilometres southwest coking of coal Katowice. coal mining Huge in Poland, deposits about were 60 kilometres found in southwest offer Katowice. a more Huge processed, deposits were higher found value mine coal sits in it Jastrzębie Zdrój, produces, enabling the heart of JSW coking SA to the in area s the area s picturesque green hills hills during during mines the were 1960s, set up. and Coking over coal the is course used predominantly of produced to make coke, 9.8 an million essential tonnes component of cok- the 1960s, final and product. over the course In 2013, of 12 JSW years SA s five mines 12 years five mines were set up. Coking ing coal (including 7.8 million tonnes coal is used predominantly to make of hard coking coal) and 3.8 million coke, an essential component for producing steel from iron ore. year, JSW SA s coking plants produced tonnes of steam coal. In the same 3.9 million tonnes of coke. As its name implies, Borynia Zofiówka- Jastrzębie is actually three coking coal mines (Borynia, Zofiówka and Jas Mos) that were combined into one in January The mine is operated by stateowned Jastrzębska Spółka Węglowa S.A. (JSW SA) and was strategically integrated to make better use of the coking coal deposit and production assets, incorporate the best design solutions, implement the best organizational practices into everyday work and optimize employment resources. Borynia- Zofiówka Jastrzębie currently employs 10,560 people and has an average daily 32 Spring 2015 The sprawling Borynia Zofiówka Jastrzębie site, covering 66 square km, is home to a processing facility, administrative offices, storage and such shipping infrastructure as mining elevators, rails, trains and trucks. The mine itself is a vast interconnected network of tunnels and caverns, some of which are 1,200 metres deep. ONE DEEP DIVE It takes about 25 minutes to get from the surface to the belly of the mine. First the miners equip themselves It s at this point that the heat, which has been steadily rising during the descent, reaches temperatures around 30 degrees Celsius. It is also very dark. At some points, the only light available to the descending miners emanates from the lamps on their helmets, which gives their approach an otherworldly feel, as if they were exploring an unknown planet or the bottom of the sea. This feeling is compounded by the utter silence (all sound is insulated and dampened by the rock face) and the puffs of dust each footstep produces. This beige powder is the product of rock dust brought in to trap the flammable coal dust. Still, the miners are in good spirits. Despite working in dark, confined spaces, their sweaty, swarthy faces smile readily, and they address one another with a tip of the hard hat or a handshake and a hearty Szczęść Boże ( God bless ). After a 15 minute walk downward, the sounds of the drills and conveyor belts that carry the coke coal rise, their din indicating the location of the day s activities that involve developmental work on the rock wall. CONTACTS Sandvik Mining Turkey [email protected] Website: mining.sandvik.com

35 I lead a group of about 350 people, says Zbigniew Czarnecki, developmental mining manager at Borynia- Zofiówka Jastrzębie. I plan and manage the preparatory work at the mine, which involves cutting through the sandstone to expose the coal. We excavate a lot of coke coal here, which is later cleaned and treated at our processing plant. SANDVIK TRISPEC TOOLS Sandvik TriSpec tools are equipped with a carbide ring placed slightly below the tip to prevent body wear and maximize carbide tip use. Each tool is available with either an insert or cap carbide tip. Sandvik TriSpec tools are the top of the line in high body wash conditions. TOUGH TOOLS FOR HARD WORK Czarnecki s team employs Sandvik MR340 and Sandvik AM75 roadheaders to build galleries along the coal bed for future extraction. It is hard work; each shift of miners cuts around 80 centimetres in a cycle before steel arch supports need to be erected to protect against a cave in. Where the rock is too hard for the roadheader, the team uses a drill and explosives, which limit the amount of hard manual labour required. We have a face with a lot of hard rock to work through, says Pawel Stepowy, a muscular roadheader operator with a decade of underground mining experience. The rock is both up and down in the excavation s cross section. A big advantage with this roadheader, other than its toughness, is the visualization it offers. It really helps with excavating the rock when dust limits visibility. And then there are the resilient cutting tools it uses to strip away the sandstone. One of the most important considerations at Borynia Zofiówka Jastrzębie is productivity. The robustness of the rock tools used at the mine is directly correlated to downtime, lost production and higher labour costs. Sandvik TriSpec tools are equipped with double carbide rings that substantially improve wear resistance, an essential feature in the harsh environment of a coal mine. Before Sandvik won the contract, each potential supplier was asked to participate in a number of obligatory tests even before actual negotiations commenced, says Przemysław Brychy, Sandvik regional sales director. Our products performed extremely well in these tests, outperforming competing products by 150 percent. Increased efficiency Janusz Piechoczek, another roadheader operator with eight years on the roadway development team, knows how important it is to have robust cutting tools. We use around five Sandvik Tri- Spec tools for every 20 metres of excavation, Piechoczek says. The quality of the tools is excellent, and these ones don t get worn out quickly, so they have to be changed less frequently. It makes the whole project go much faster. Czarnecki was also impressed with the performance of the tools. The tools the mine used earlier wore out very quickly, he says. With the new Sandvik TriSpec tools, the efficiency of the process was raised by some 50 to 80 percent, and the process of excavating the rock became more productive. The interruptions for the change of tools are shorter and fewer. The cutter drums are also protected, and this is comforting for the operator, who does not have to worry about what is going on at the front of the face and can concentrate on the excavation process. Trusted partnership The cooperation between Sandvik and Borynia Zofiówka Jastrzębie extends well beyond the supply of robust tools, and looks to continue for some time in the future. My experience with Sandvik has been very positive, Czarnecki says. Each and every time I have a remark about anything, there is always a quick reaction from their side. We definitely see a continued partnership going forward. Once the difficult work of clearing the rock away is complete, the excavation of the coking coal can commence. When the mine is running at full capacity, express elevators ship around 15 tonnes of coking coal up to the surface every 30 seconds. After that, the coking coal is processed and prepared for shipping to the coke plant, all run by JSW. It is an efficient process, one dependent on the developmental phase, which is made even more productive when the tools are right and strong enough to tackle hard rock deep down inside the mine. THE SANDVIK SOLUTION Along with Sandvik AM75 and Sandvik MR340 roadheaders, the Borynia- Zofiówka Jastrzębie mine also operates a loader from Sandvik. But it s the Sandvik TriSpec cutting tools that keep this mine humming at an efficient pace. These tools have improved operations by increasing production, offering better cost pertonne efficiency, improved process cost savings and enhanced energy efficiency. TECH SPECS SANDVIK MR340 ROADHEADER Max. cutting height 4.87 m Total weight 52 t Total length 10,300 mm Height over canopy 1,850 mm Width over loading table 2,800 mm Ground pressure 0.13 MPa Electrical system 1000 V/50 Hz Cutter motor 200 kw Hydraulic power pack motor 63 kw Loader motors 2 x 36 kw Power supply demand Via transformer 630 kva Via generator set 800 kva Conveying system Loader star drive via conveyor motors Chain speed 1.1 m/s Capacity of conveyor max. 400 m3/h Cutting profile Height 4,870 mm Width 7,400 mm Undercut 350 mm Negotiable gradients +/ 20 gon Speed of cutter head 2.3 m/s Tramming speed m/min Spring

36 Article Life of a Mine Manager Amidst Cultural Transformation A key issue for all mining operations is a need for reliable, accurate, and up to date information that allows management the ability to make data driven decisions. Access to this type information can be used to positively influence performance in the areas of cost, safety, and productivity. In operations, where inconsistent or poor performance exists, it is sometimes very difficult to grasp the causes and many variables needed to be analyzed to fully understand these universal short comings, but in most cases it comes down to lack of actionable data, a poor workflow process, and most importantly, lack of site wide engagement from both hourly and salaried employees. In essence, to improve overall mine performance a complete cultural change was required The goal of this short article is to describe the total cultural transformation that occurred in a coal mine in Canada, when a three prong process is used to drive performance. It can be referred to the three P s of the cultural transformation. The three P s stand for people, process, and platform. The platform in the three P s is referring the technology platform that exists within a company. Examples of this in include fleet management systems, mobile apps and data warehouses. The process is referring to the company s operations work flow process. Finally the last P is for people. This P is the most important and most difficult to change. 34 Spring 2015 Home Key Performance Indicator Actuals Goals Points Possible Points Achieved Last 30 Days % Incidents (first aid or any incident ) In order to invoke positive change in these respective areas a data driven solution with a deliberate meeting processes must be developed. One of the most effective tools to achieve this is the balanced scorecard concept. The balanced scorecard system is a 24 hour look back at the overall mine performance. It is based on a set of KPI s that are driven by leading indicators. KPIs are what most mines use to measure performance and are things such as tons or accident count. But this is like driving the business through the rear-view mirror. These are things that have already happened. It does not give managers a direction on how to improve. The review of the leading indicators is how to truly drive performance. The leading indicators are the things you must do right on a daily basis to achieve your overall objectives (KPI s). This approach to the overall management of the mine changes the culture in positive ways. A meeting is held every morning at 7:00 AM that allows each department % Coal Mined (Tonnes ) 6, , % Total Production - Shovel / Excavator (BCM) 75, , % Production Meters Drilled 1, , % Leading Indicators Actuals Goals Points Possible Points Achieved Last 30 Days % Safety Interactions % Equipment Health Alarm % BCM/Shovel Ready Hour 1, , % Meters/Drill Ready Hour % BCM/TruckReady Hour % AM Production BCM s (6am to 8pm) PM Production BCM s (6am to 8pm) 4, , % 4, ,350, % Avaible hours (Shovel) % Avaible hours (Truck) % Avaible hours (Drill) % Operational Delays (Primary Shovels) Date Monday, April Shift All % head to review their specific (operations, maintenance, plant, and engineering) areas performance with the mine manager. The figure below is an example scorecard. There are a few core elements to a proper scorecard: CONTACTS Shane Gant 1 President, Dakota Westmoreland Corporation [email protected] Sean Dessureault CEO, MISOM Technologies [email protected] M. Mustafa Kahraman University of Arizona kahraman@ .arizona.edu 1) Shane Gant has worked in various positions in mining in past 15 years. Some of his last roles include director of continuous improvement, operations manager and mine manager in Walter Energy Canada. He is currently President and General Manager at Dakota Westmoreland Corporation.

37 KPIs: as mentioned, these are key measures that we traditionally use in mining. Every manager has their own set of measures. Only the areas, for which the manager has control, should be used. Leading Indicators: these are measures that help lead the manager toward asking the right questions. Leading indicators drive the manager to focus on what needs to be done to improve. Goals: are cultural enablers. They drive a conversation and competition between managers. Since each manager has different KPIs and Leading Indicators, the only means of friendly competition are points (a score). This social aspect of the scorecard process is critical. Goals can be weighted according to their perceived importance. Last 30 Day %: this measure helps to hyper-focus the scorecard meetings. Managers do not have the time to review each measure. However, with the %achieved metric, managers can immediately see which areas are in need of more attention (safety interactions, Ready hours, production, etc ), and which are opportunities for congratulations. Wrapping all these elements together, consider this example: note that the KPI goal for total production (Bank Cubic Meters (BCM) for this mine manager has not been met once in the last 30 days. The leading indicators for this measure are the BCMs during the startup hours AM Production BCM s (6am to 8 am) and its afternoon counterpart. It had only been achieved once in the past 30 days. Having a good shift start is critical to achieving production goals. The manager can now focus on getting his shifts started-up and productive. Since the MISOM data warehouse is easily viewed through OLAP-linked pivot tables in excel, the data can be quickly mined for reasons for underperformance if necessary. This highvisibility allowed for greater scrutiny on costs during a period of low-prices, enabling a reduction of 10%in costs. This continuous focus through the scorecard, along with MISOM s mobile app, boosted productivity by 17%. The final phase of the scorecard process is a 30 day review, which is a meeting held by the GM with individual department managers to review the previous month s performance. This serves as a platform to identify the validity of leading indicators (remove or add measures). The meeting should be formal and supported by ad hoc analysis from the DW supporting the manager s performance. The simple question that needs to be answered is what is the data telling you and what are you doing about it. Following the scorecard process yields long-term results. At a large coal mine where MISOM has worked for the past decade, the improvements persisted. It also shows the impact of measures on a manager s card. The graph below shows shift change time (in minutes) for two managers, the coal manager (in red) and overburden (waste) manager (in blue). The scorecard process was initially implemented in It was placed on the coal manager s scorecard but not the overburden manager s, where a clear 15 minute difference can be seen. In the last quarter of 2008, managers changed, along with their scorecards. Now the coal manager did not include shift change whereas the new overburden manager did. Within two quarters, a clear improvement in the OB manager s crews occurred and devolution in the new coal manager s crew s performance. Finally, in the last quarter of 2012, increased scrutiny identified that shift change was a key leading indicator, and it was placed back onto the coal manager s scorecard and within single a quarter, performance was restored. Technology alone cannot solve all the problems. Change management, business process re-design and data utilization are key elements for successful operations. Current market conditions accelerated globalization in mining industry. Reducing the costs and increasing safety and productivity have become global targets of mining companies. However, these goals can only be achieved through cultural transformation and process improvement. Spring

38 Article High Calorific Value Coal: Global and Turkish Outlook Despite the fact that coal has notorious perception due to its impacts on the environment, it s not possible to neglect its share in the global energy supply. Especially, in emerging markets with ever growing energy demand, relatively cost and eligibility advantages bring coal into prominence. Deloitte Turkey has recently published a public report on the global and local use of high calorific value coal with extensive commentary and data visualisations. For a printed or electronic copy of the report please ktopuz@ deloitte.com GLOBAL Production: In parallel with developments in economies that consumes coal intensively; global coal production reached 7.9 billion tonnes and hit the record high level in Among the coal types, hard coal stands for 91%of global coal production and recent increase in hard coal supply is mainly stimulated by steady growth in steam coal production. Also, steam and coking coal production increased by 0.3%in 2013 and reached to 7.2 billion tonnes production level. Consumption: When sectorial consumption of coal is analysed, global coal consumption increased by 3%and reached to 7.8 billion tonnes at the end of It is occurred that electricity and heat generation sector maintains its leadership with more than 3.8 billion tonnes and this situation can be seen in Turkey as well. Trade: In 2013, coal trade volume increased by 6%and reached at 1.2 billion tonnes of which 1.1 billion tonnes is transported by sea freight and only 95 million tonnes is carried by land transport. Coal trade volume represents 17%of total coal production whereas remaining coal production is basically consumed in the same country where it is produced. As a result of increasing coal demand, China s coal import activities has shown great advancement by 36 Spring 2015 reaching over 235 million tonnes and for the first time China get ahead of Japan whose coal import accumulated to 185 million tonnes. India and South Korea from Asia & Pacific region also Germany, England, Turkey, Italy and Spain from Europe are rated among the other major coal importing countries. Market Value: As global coal market volume increased by 5%in 2012, Asia & Pacific region countries and top 10 hard coal companies remained their leading positions. Especially, production of top 10 hard coal companies accumulated to 1.8 billion tonnes and market value of billion USD. This also indicates that top 10 hard coal companies hold 24%of hard coal production and 20%of hard coal market value. TURKEY Production: Turkey has 1.3 billion tonnes of hard coal reserve of which 514 million tonnes is classified in proven category. However, in the recent years, reserve volume of major hard coal fields remained at the same level. When local production and import analysis conducted, it is seen that decreasing production rate of TTK and local private sector players lead hard coal importers to close the increasing hard coal supply deficit. In order to uplift the decreasing hard coal production of TTK, mining sites are started to be transferred to private sector players in exchange for royalty fees as from Private sector players production increased to 1 million tonnes level in 2006 and yet could not able to maintain this performance due to ups and downs over the years. Eventually, in 2013, Turkish hard coal production has decreased to 1.6 million tonnes and hit the record low levels since Imports: In order to satisfy the increasing hard coal demand, Turkish hard coal supply leaned to imports and as a result import ratio in hard coal supply reached to 95%. For the six years between 2008 and 2013, coal Imports increased to 26.6 million tonnes. Among the hard coal types, steam coal import represents 81%of total hard coal import with 21.5 million tonnes and also coking coal imports reached to 5.1 million tonnes. With more than 8.6 million tonnes of steam coal import, Russia took the lead in Turkish steam coal market where Colombia and South Africa exported 7.2 and 3.3 million tonnes of steam coal to Turkey respectively. In recent years, U.S.A. has come into prominence in global coking coal supply and constituted 69%of Turkish coking coal imports with 3.5 million tonnes. Consumption: In 2013, hard coal consumption decreased by 10%and fell to 28.2 million tonnes. As the biggest hard coal consuming sector, electricity & heat generation constituted 62%of Turkish hard coal consumption and recent coal power plant investments increased the hard coal consumed in power plants. Installed Capacity: The installed capacity of imported coal PPs in Turkish electricity market has passed 3.9 GW by the end of the On account of increasing Turkish electricity demand and economic advantages of imported coal, it wouldn t be wrong to expect that imported coal PPs will show significant growth. In the first seven months of 2014, additional installed capacity of 950 MW connected to the grid. Uncertainties related to natural gas power plants and unexpected delays in lignite projects lead investors to hard coal CONTACTS Mustafa Kerem Topuz Senior Manager [email protected] Süheyl Bilgel Consultant [email protected]

39 With more than 15.4 billion proven reserves, in 2013 Turkish coal production reached at 57.5 million tonnes. As usual, demand is still driven by conversion energy sector TURKISH along COAL with BALANCE residence & services and industry sectors. With more than 15.4 billion proven reserves, in 2013 Turkish coal production reached at 57.5 million tonnes. As usual, demand is still driven by conversion & energy sector along with residence & services and industry sectors Reserve 1. Reserve (billion tonnes) (billion tonnes) 2. Supply 2. Supply (million (million tonnes) tonnes) Production**** Import Import 3. Demand (million 3. Demand tonnes) (million tonnes) as relatively more eligible and cheaper energy source and as a result great number of projects showed up. As of end of 2013, 7 imported coal power plants are connected to the grid whereas there are 20 projects under the evaluation, 10 power plants under construction and 3 power plants have obtained pre-licenses. In total, current and upcoming imported coal power plants accumulate to 30 GW of installed capacity. After the natural gas investment propensity in 2011, Turkish electricity market has a new tendency to imported coal power plants. Hard Coal Hard Coal Lignite* Lignite* TTK TTK TTK TTK Private Sector** Private Sector** Import (26.6) (1.3) (1.6) EÜAŞ (8.0) TKİ (21.7) TKİ (2.1) EUAS (25.0) MTA EUAS(25.0) MTA Private Sector** Private Sector (4.0) (4.0) Private Sector (9.2) Total (15.4) Total (57.5) Total (26.6) Total (84.1) Conversion & Energy Residence && Services*** Industry Industry 2014 Deloitte Turkey, Member of Deloitte Touche Tohmatsu 2014 Limited Deloitte Turkey, Member of Deloitte Touche Tohmats Source: TTK TTK & & TKİ TKİ Annual Reports 2013, 2013, ETKB ETKB Energy Energy Balance Balance 2013, Deloitte Analysis **Private sector s lignite reserves are are subjected to declaration to declaration ** Includes asphaltite production *** Includes demand of of agriculture sector sector stock changes **** Includes stock changes On the other side, it becomes apparent that all locations available to imported coal power plants are already held by investors and some of these projects will be driven out of the competition. It is also worrying that such coal projects can also bring serious environmental issues. TRENDS When global coal market analysed, trends like China s growing coal demand, shale gas impact on coal prices and carbon policies can be defined as major indicators that have determining role on coal pricing. China: Coal is mainly consumed in the same region where it is produced, that is the reason why coal production and consumption activities are affected directly by regional developments. In this respect, economic development in China and other Asia & Pacific countries is the main factor behind the increasing coal activities. For the six years between 2008 and 2013, despite the decreasing coal production trend in the rest of the world, Asia & Pacific region coal production increased by 1.2 billion tonnes and uplifted global coal production by 1.0 billion tonnes. However, Asia & Pacific was still net coal importer region in By representing 50%of global coal demand, China came into prominence as the biggest coal importer in the world. Development of Coal Power Plants: In 2013, coal power plants share in global electric generation increased by 4%. According to the forecast study shows that coal power plant generation will increase by CAGR of 1.2%and Asia & Pacific region will represent 70%of that generation at the end of Especially, China is expected to increase its share from 45%in 2013 to 48%in U.S. Coal Imports: As a result of U.S. shale gas development, decreasing natural gas prices triggered natural gas preference over coal in electricity generation sector. However, due to unexpected delays in LNG exports investments and licencing procedures, shale gas production in U.S. is mainly consumed internally, over supply of natural gas triggered decline in the natural gas prices. Hereby, natural gas power plants came in more favourable position against the coal power plants which used to dominate the U.S. electricity generation market. Decrease in U.S. coal consumption caused excess coal supply in the market and triggered coal export activities to force global coal prices to fall. In the third quarter of 2012, coal exports grew by 31%and reached to 34 million tonnes and it caused coal price (FOB ARA) to drop by 11%. Global Trade: Developments in coal market provide opportunity for financial & physical trading to have more widespread, liberal and liquid market structure. Physical coal trade activities are carried out in ports and price indices related to these ports enable traders to fulfil the financial activities. As a result, these price indices provided better risk management opportunities for trades. In 2000, global coal trading activities actualised in financial and standardized markets had a very small volume however as from 2007 the trading volume showed a significant increase. Volume of steam coal derivatives grew by 13%from 1.3 billion tonnes in 2007 to 2.4 billion tonnes in Carbon Emission: Within the scope of environmental policies, low performance of carbon markets caused continuation of the coal power plants advantages against the greener competitors like natural gas PPs and renewables. In order to decrease global carbon emission, several actions are taken however, EU-ETS (European Union Emission Trade System) was the first and biggest practice introduced to carbon markets. EUA emission credits started from 21 EUR/ tonnes in 2005; however, it showed poor performance afterwards. In a period between 2008 and 2011, EUA felt by 54%and became 7 EUR/tonnes whereas CER dropped by 69%. Due to the low performance of carbon prices, carbon markets could not be a treat to coal investors and coal power plants maintained competitive advantage against natural gas power plants. Spring

40 Profile Argetest ARGETEST where the basic principle is to provide quality services to its clients was established in November 2012, and it embodies Mineral Processing Laboratory, R&D Laboratory and Mineral Analysis Laboratory. It is the first laboratory in Turkey which does mineral processing and R & D works in the private sector and also it is included among the few worldwide laboratories in this field. ARGETEST where main principle has been quality since the day it was founded, possesses TS EN ISO/IEC Testing and Calibration Laboratory Accreditation Certificate. Furthermore, it have been certified with ISO 9001: 2008 Quality Management System Certificate, ISO 14001:2004 Environmental Management System Certificate, OHSAS 18001:2007 Occupational health and Safety System Certificate. MINERAL PROCESSING AND R&D In our laboratories, mineral processing works of the metallic ores, industrial raw materials and coals can be done by the physical and chemical methods and also recovery of tallows of the outdated technological plants can be done. The obtained data after Studies are reported in Turkish, English, Chinese, Persian and Azerbaijanis languages with the international reporting standards and also these are submitted as printed or electronic copies. ARGETEST Mineral Processing and R&D Unit services offered: lab scale mineral processing test studies, mineral process characterization and process mineralogy, pilot scale mineral processing test studies, mineral processing plant flow chart design, plant optimization and revisions, determining the plant problems with the site application and works on overcoming these problems and On-site applied trainings. ARGETEST mineral processing and hydrometallurgy unit works: Mineral characterization and process mineralogy, Comminution tests, Classification, Beneficiation (Gravimetric separation, Wet & Dry magnetic separation, Flotation and Hydrometallurgy) and Dewatering and solid & liquid separation MINERAL ANALYSIS LABORATORY The applied methods and results by our certified laboratory with TS EN ISO/IEC Testing and Calibration Laboratory Accreditation Certificate are regularly controlled with certified standard samples, internal inspection samples, duplicate, replicate, quartz and blank samples to statistically prove the accuracy and precision. Our mineral analysis laboratory can be performed quantitative analysis of more than seventy elements. Analysis which are done by applying international standards were performed by ICP, AAS, UV, volumetric-gravimetric methods, and also gold, silver and platinum group elements analysis were performed by Fire Assay (cupellation). Considering the international ore norms; along with geochemical analysis, precious metal analysis, ore sample analysis, import-export analysis, metal-alloy analysis, industrial raw materials analysis, major and minor elements in coal ash analysis, rare earth elements analysis and boron analysis, we respond to the sector s needs economically and quickly by presenting analysis packages which be created depend on client s requirements. ARGETEST which based on quality, privacy and customer satisfaction were tripling its capacity as of January Also the correlation between results and core logs services has been opened besides monitoring the analysis process, 7/24 reaching and archiving the analysis result and images of samples, online payment facility with our online services. ARGETEST that shorten its analysis delivery period under international standards, convey the result of analysis to its clients at the same time with online services. Simultaneously update clients about analysis result with short message (sms) and . CONTACTS Argetest [email protected] Web: 38 Spring 2015

41 Analysis Services Mineral Processing and R&D Geochemical Analyses Precious Metal Analyses Ore Grade Analyses Import - Export Samples Analyses Metal Alloys Analyses Industrial Raw Materials Major - Minor Elements Analyses in the Coal Ash Rare Earth Elements Boron Analyses Online Services Follow the analysis process 24 Hours access to report and photographic archives Analysis request Technical support Online payment

42 Article Series Valuations in Mining & Mineral Assets - Part I BACKGROUND TO THIS DISCUS- SION PAPER In 2005 the IVSC (International Valuation Standards Council) issued Guidance Note 14 (GN14) The Valuation of Properties in the Extractive Industries. It formed part of a suite of Standards, Applications and Guidance Notes that collectively made up the International Valuation Standards (IVSs). In 2006 the IVSC commissioned a Critical Review of all its existing standards. The report of the Critical Review Group was published in July 2007 and comments were invited upon it. It identified a number of weaknesses with the IVSs as they existed at that time. In 2008 the IVSC Standards Board agreed to commence an Improvements Project that should address the weaknesses identified by the Critical Review Group. This project involved a comprehensive reorganization and rewriting of the previous documents. The Improvements Project was completed in July 2011 with the publication of 12 new Standards. The IVSC has also been encouraged to develop improved standards in this area by securities regulators who are concerned at the diversity of valuation information on extractive activities presented by companies under their jurisdiction. The Board has therefore agreed that a dedicated project is required to determine appropriate valuation practice in the extractive industries and develop as necessary a dedicated standard and supporting technical guidance. For the current practice however the existing standards as published by professional institutes of the Mining Industry are used predominantly by professional qualified persons and accepted by the main governmental and non-governmental investment institutions, equator banks and securities regulators and major resources bourse like TSX, LSE, ASX, JSE, etc. 40 Spring 2015 VALUATION SCOPE EXTRACTIVE INDUSTRIES. The term Extractive Industries is commonly used to describe both mining operations and the extraction of oil and gas. In its former GN14, the IVSC combined guidance on both, with the only specific exclusion being the extraction of water from the earth. The IASB also has adopted a similar approach in creating a single standard, IFRS 6 Exploration for and Evaluation of Mineral Resources. In support of this approach it is argued that there is no clear distinction between the extraction methods employed, with some metals being recovered by fluid dynamics and in-situ recovery techniques that are almost identical to those used in secondary oil recovery. Geothermal energy production is also an extractive industry, and again the technology of hot water or steam production is similar to that developed with fluids like natural gas. In addition to the similarities in the processes the relevant valuation inputs and considerations such as the life of the asset mean that the valuation methods used are very similar, subject to only minor variation between industry subsectors. A contrary argument is that the mining and oil and gas industries are individually among the largest in the world and the major entities specialise in one sector or the other. The skills required in each are highly specialised and therefore to be meaningful valuation guidance has specific to one sector or another. Separate guidance for the resource type is most definitely appropriate for the following key reasons; 1. The two industries are very different at the fundamental levels that are important; 2. The investment profile and quantum is several orders of magnitude different in size; 3. The strike rate for discovery of economic volumes of resources are very different; 4. The time frame to economic production of any discovered resource is very different; 5. The regulatory frameworks and local jurisdictional & physical environments around them are generally very different; and 6. The overall risk profile and magnitude of potential losses for no results to investors are vastly different. ASSETS TO BE INCLUDED Because of the interdependence of; a) Reserves and resources, b) capital equipment for extraction, c) infrastructure for extraction, and d) intangible assets employed in extraction, the scope of any valuation should examine the impact that all of these could have on the value of the assets, either in isolation or as part of an entire business involved in extractive activity. CONTACTS Alan M. Clegg Chairman, Afrasia Mining & Energy Consulting AS [email protected]

43 My belief is that valuation should extend to offer guidance to other assets employed separately and in terms of approach to entire businesses or discrete operations separately. Main reasons are; Assessing value is generally for one of three reasons, either potential acquisition or potential sale or Recordal on a balance sheet as part of financial reporting of NAV; In all three cases proper independent assessment is required to give credence to the values recorded. The requisite acceptable Minerals code, i.e. JORC, SAMREC, CIM, etc. can be used for Resources & Reserves quantification and dependent on the stage of the resultant Resources and/ or Reserves an appropriate Mineral valuation code can be used, i.e. VALMIN, SAM- VAL, or CIMVAL all of which follow and offer the same approaches dependent on the stage of the projects development. For other assets and/or business assessments discretely different approaches are required which are embedded in what I call Operational Due Diligence (ODD). This ODD approach measures the technical and physical integrity of physical assets being employed, yet also embodies certain financial DD elements, e.g. Critical inventories of high value contingency spares that ensure business continuity; and even legal DD e.g. Certificates of competency of HR employed, Statutory inspections and log books carried out, fault reporting, pollution control & emissions, waste management/environmental, etc. All of these reports into and either negatively or positively affect value. GN 14 FORMER GN14 In 2005 the IVSC issued GN14 Valuation of Properties in the Extractive Industries. As explained in the introduction to this paper, the Board decided during its review and updating of all the standards and guidance issued prior to 2008 that a fundamental review of this Guidance Note was required. The Board felt that although it provided a detailed commentary on the classification of minerals and of the codes used for this purpose, it had comparatively little detail on practical valuation issues, methods that could be used and the merits of those methods in different circumstances. It therefore decided that the material in this GN could not easily be carried forward as either an International Valuation Standard or are Technical Information Paper without a fundamental review. In 2010 the IVS Standards Board withdrew GN 14 pending review. RESERVES AND RESOURCES MINERAL CLASSIFICATION CODES. GN 14 referenced the CRIRSCO and UNFC codes. However, other codes are used for classifying minerals reserves and resources, including the PRMS Code for petroleum and the NI43-101, SAMREC and JORC for hard rock. Understanding the Codes used for identifying minerals is fundamental to the valuation of the DK assets. The codes most commonly used in the industry / sector are NI43-101, JORC, SAMREC for resources & reserves; VAL- MIN, SAMVAL and CIMVAL for valuation of mineral assets. VALUATION METHODS - GENERAL In the Extractive Industries the appropriateness of each approach or method will depend on a number of factors including: Stage of project (exploration, de velopment, and production), Ability to identify and classify ex tent of reserves, Ability to project capital expenditure, Ability to project operating expen diture,, Ability to forecast future prices for minerals/petroleum products, Existence of public information regarding comparable projects, Stage of regulatory approval, and ability to forecast risk in progressing to extraction (existence of EIAS, etc.), Certainty regarding title, and other legal considerations (non-regulatory), Availability of financing, Availability and financing of infrastructure, Marketing of resource considerations, THE VALUATION METHODS MOST COM- MONLY USED FOR VALUING ARE: Proven reserves The Income approach most common, while the Market approach is used as a potential modifier for upside advantage to seller. If operations have started the execution of ODD is also critical as a modifier to value and its realisation through operational continuity and sustainability at an optimum. Probable reserves The income and market approach both common but income most popular. The Cost approach also applied but mainly in Diamond property valuations in my experience. ODD may in some cases apply here also. Possible reserves or resources The Cost and Market approach used as a balance to obtain fairness is in my experience most common. My experience has shown that the results obtained using these methods proved over time to be closest to reality. In Part 2 to be published in the next issue we will discuss applicable Valuation Methods in detail, specific Treatment of Assets, Intangibles and Good Will, Government Regulation, etc. Spring

44 Profile Please Start Using Petrofer Fire Resistant Hydraulic Fluids!!! In factories where there is hot metal, high temperature and open flame, using mineral based oil in hydraulic systems, can cause big accidents with terrible results. During last eight months, in iron & steel, die-casting, forging, glass and mining industries of Turkey, there were many fire accidents happened because of working with mineral based hydraulic oil and unfortunately in some of them, workers even lost their lives. Mineral based hydraulic oils can burn very easily when they get in touch with high temperature surfaces and cause big fire and give heavy black smoke outside. The fire always try to reach the source of the oil, and the oil continues to burn even tough high temperature surface and fire source is kept away. It acts like a big fire ball which can destroy all surroundings! Fire Resistant Hydraulic Fluids (HFA, HFC & HFDU Fluids) behave different than mineral based hydraulic oils because of their chemical components. Their Viscosity Index is higher than mineral oils, so, their viscosity doesn t change when the temperature increases. They have very good thermal stability and perfect lubrication properties. Besides they have very good oxidation resistance and forms a good corrosion protection. Even these fluids work in hydraulic systems at high temperature surroundings, they enables very safe working conditions because of their high flash and fire points. Besides Fire Resistant Hydraulic Fluids products are biodegradable, which do not damage the environment. Nowadays most of the insurance companies, started to get high insurance fees or cancelled insurance policy completely because of the big fire risk caused by mineral based oil usage in hydraulic systems. Apart from this unexpected effect, the more important factor is human health and work safety It is all our responsibility to minimize the financial & personal losses in the factories. During last one year, Turkish Government took serious precautions in order to prevent work accidents, which bring high punishment amounts to the mentioned sectors. For this reason, it is always important and necessary to use Fire Resistant Hydraulic Fluids in order to prevent fire risk and human life loss. As Petrofer Turkey, we do recommend our Fire Resistant Hydraulic Fluids named ULTRA SAFE SERIES and EN- VOLUBRIC HE SERIES to our customers. It is even necessary to use Fire Resistant Hydraulic Fluid products to prevent machines and equipments such as forklifts, scrap presses, etc Petrofer s Fire Resistant Hydraulic Fluids has international 7th LUX- EMBOURG CERTIFICATE and FM AP- PROVAL CERTIFICATES. Additionally, ULTRA SAFE SERIES products have CATERPILLAR, JOY and TIEFENBACH APPROVALS for Mining Industry. These approvals guarantee the continuous fire resistant properties of our hydraulic fluids. By using FM Approved Fire Resistant Hydraulic Fluids, our customers can get good discounts in insurance fees from their insurance companies. Also, our customers can create a safer and healthier working environment for their workers in addition to better equipment protection. CONTACTS Petrofer Turkey [email protected] Web: BEFORE HAVING A FIRE IN YOUR FACTORY BEFORE LOSING A WORKER OF YOUR FACTORY BEFORE BEING DAMAGED BY AN UNEXPECTED ACCIDENT BEFORE BEING TOO LATE 42 Spring 2015

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46 Review Turkey s Hidden Potential: Thorium Source: tomorrowisgreener.com Turkish Energy Foundation has recently published a report about Thorium and its importance for Turkey. The report briefly emphasizes on thorium s nuclear power plant use and its contribution to Turkish energy problem. According to the report, Turkey comprises one of the largest thorium reserve in the world, in fact the second biggest after India. However, recent studies and explorations are not sufficient enough to reveal the exact thorium capacity of Turkey. Mineral Research & Exploration General Directorate of Turkey (MTA) reported that proven thorium reserve in Turkey is tons. But OECD and IAEA claim that thorium reserve in Turkey is exceeds tons. The largest proven thorium reserve is found in India with tons amount. Major thorium reserves are placed in Eskişehir Sivrihisar, Isparta Aksu and Malatya Hekimhan in Turkey. Especially Isparta Aksu region steps 44 Spring 2015 forward for industry by containing thorite minerals which are processed more easily. Eti Copper Inc. claims that Turkey holds 13.8%of total thorium reserve of all the world. On the other hand, the most important challenge for Eskişehir Sivrihisar s thorium was considered as variance of minerals in this reserve, in fact the amount of thorium only consists 0.2%of total reserve. Under favor of high technology, this problem could has been able to come up with a solution recently. USA, China, Russia, UK, Japan, Korea, Belgium and India have a thorium strategy, even tough not all of these countries have thorium reserves; such as Korea and Japan. The main reason for this countries to have a thorium strategy expectation of commercialization of thorium technology. Uranium based conventional nuclear power plants are expected to commercialize within 5 years; however thorium reactors are expected to commercialize between years. For instance, China is planning to operate its first Thorium reactor early of 2020 s. Moreover, China spent around $350 million for thorium projects in 2015, whereas there have been no discernable studies in Turkey yet. The report reveals a competitive thorium technology strategy between these countries. This competition is named as thorium race. According to the report, thorium developing countries are not willing to share any relevant information with each other and hold their researches under wraps as a part of thorium race. The report, on the other hand, suggest that Turkey research on thorium urgently to catch CONTACTS Hazal Birses Mining Turkey Magazine Petroleum and Natural Gas Engineer, [email protected] Web:

47 up these countries. Pleasingly, a recent strategic plan has been published by Energy and Natural Resources Ministry of Turkey and it contains a thorium chapter. There are several advantages of thorium use in power plants rather than conventional uranium power plants. Wider existence of thorium in nature and high efficiency of thorium in power plants with respect to uranium are counted as major advantages. For example, 1 ton of thorium has equal power capacity with 3.5 million tons of coal or 200 tons of uranium. Substantial handicap of thorium is not being a fissile material that means a neutron source is needed for thorium to be used as an energy source. Neutron sources are limited in three options; Doping via plutonium or enriched uranium Neutrons produced by GeV proton accelerator Neutrons obtained by fusion process Plutonium and enriched uranium utilization with thorium were successfully experimented in Germany and USA in 70 s and 80 s. However, both these elements are also used as source of nuclear weapons, therefore uranium and plutonium based power plants are seen risky but undesirable. Two other options are relatively safe with respect to first method. The report reccommends Turkey to consider these options for a long term project. According to the report, development of thorium technology culminates in four major opportunities. Primarily, relatively cleaner, safer and cheaper electricity production could be obtained owing to thorium reactors. Another opportunity is that thorium reactors could eventually provide external independence for electricity production of Turkey and eliminates overburden on Turkey s import. Turkey is an externally energy depended country with a 72%ratio. Moreover, 45%of Turkey s electricity production is provided by natural gas. Hence, thorium power plants is critical for Turkey. Commercialization of thorium reactors provides high technology product export to Turkey; consequently, a major growth in Turkish economy could be expected by thorium product export. Thorium reactors are principally same as uranium power plants except for the fuel source. In case Turkey is capable of building thorium power plants, Turkey could obtain a significant share from worldwide projects. Another major economic impact of thorium commercialization for Turkey and other countries which have thorium reserves, is becoming both a raw material and energy exporter just as petroleum and natural gas exporting countries. Therefore, thorium rich countries could provide a stable and profitable thorium supply by constituting a foundation such as OPEC. Thorium power plants reduce CO 2 emission and prevent CO 2 related environmental destruction and risks which are counted as the last thorium opportunity for Turkey in the report. There are some recommendations Source: defence.pk for Turkish Thorium Strategy in the report. According to the report, Turkish thorium strategy should be conducted as a peaceful nuclear R&D activity, and be integrated into the current nuclear strategy. Thus, long-term administrative commitment and allocation of funding can be sustained more easily. Turkish thorium strategy should progress in an incremental and cumulative way. The report also suggests that Turkey to develop its thorium capabilities into three main topics which are administrative capabilities, human capital and physical infrastructure. REFERENCE: Sultansoy S., Şahin S., Ünal S., Türkiye de Toryum: Enerji, Ekonomi ve Siyasette Fırsatlar, 2, Spring

48 Article SPOTLIGHT ON UQ IN TURKEY Turkey, the country that joins Asia and Europe, is a nation experiencing immense growth, with opportunities for UQ to nurture partnerships that are mutually beneficial. This year, Turkey is hosting a momentous gathering of visitors and participating in significant collaborations alongside UQ. Turkey will welcome the world s leaders when it hosts the 2015 G20 events. The country is also seeing a large number of visitors arrive to commemorate the Anzac Centenary, which marks 100 years since the historic landing on Gallipoli took place on April With the firm advancement of Turkey s economy and its subsequent broadened global reach, the University continues to strengthen its engagement with the unique destination. In Australia, students are afforded the chance to enrol in Turkish language courses. The University additionally offers students the opportunity to participate in exchanges with two Turkish universities through UQ Abroad: Boğaziçi University and Koç University, both in Istanbul. New academic and research collaborations continue to be supported by the University, which is developing strong partnerships with Turkish universities, corporate partners and government bodies. Through collaborative ventures including a number of archaeology projects with Hacettepe University in Ankara involving historically rich research sites across the country UQ is exchanging knowledge and fostering strong connections with Turkey. UNCOVERING TURKEY S PAST For archaeologists, Turkey is a rewarding land where relics of a fascinating history abound. As Associate Professor Andrew Fairbairn from the School of Social Science shared, Turkey has more archaeological sites than Greece and Egypt combined. 46 Spring 2015 Each year, Fairbairn takes between four and 10 students, including undergraduates, Honours and Research Higher Degree students, to Turkish archaeological sites. Fairbairn spends up to 12 weeks each year working in and discovering more about Turkey, and has seen a steady increase in student involvement since he commenced at UQ in My research interest in Turkey focuses on understanding the development of the farming economy and how it influenced social and economic development from the Neolithic to Iron Age, approximately 10,500 to 20,000 years ago, he said. To better understand these historical developments, Fairbairn analyses plant remains, which he collects during annual excavations on Turkish sites. DELIVERING EXPERTISE IN MINING During the past decade, Turkey has emerged as a strong performer in the global economy. National policies, demographics including having a comparatively young population and industries such as mining are playing a critical role in its continuing growth. UQ s Sustainable Minerals Institute (UQ SMI) is poised to play a significant part in this process through a partnership in an International Mining Centre (IMC) with Turkey s Hacettepe University. A research team led by Associate Professor Andrew Fairbairn and Professor Douglas Baird gathers at Boncuklu Höyük, the site of a 10,500-year-old village near the city of Konya in Turkey. The idea for the IMC emerged from discussions in 2014 between UQ SMI s Professor Dee Bradshaw, Hacettepe s Professor Hakan Benzer and Turkish PhD scholar Barıș Yıldırım. The Centre involves collaboration between SMI and UQ s Faculty of Engineering, Architecture and Information Technology. At the same time, the Soma coal mine accident in May that year, which took the lives of more than 300 miners, highlighted the need for improved safety. The discussions led to a proposal for a centre based on a model developed by UQ SMI. It was supported by the Turkish mining industry, and officially approved by the Turkish government in November The IMC will be based at Hacettepe, and Benzer has been appointed as its Director. Hacettepe University is recognised for its technical expertise worldwide and UQ SMI represents the world s largest concentration of university researchers working on mining and sustainability issues. The IMC gives us both an opportunity to consolidate our efforts, said Bradshaw. The University of Queensland and Hacettepe University collaborated among a unique project. UQ and Hacettepe constituted an International Mining Centre in Turkey. This article was published on The University of Queensland Contact Magazine in Winter 2015 and the article mainly informs about this project.

49 The aim of the IMC is to provide a platform to ensure the safe, secure and sustainable future of mining in Turkey, through a collaboration between government, universities and business. Professor Alban Lynch, the founding director of UQ s Julius Kruttschnitt Mineral Research Centre, established collaboration between Hacettepe University and UQ in 1998, and there has been a continuous exchange of staff and students since then. In 2009, Hacettepe University joined the Australian Minerals Industry Research Association (AMIRA) P9 project one of the world s longest running research projects, which began in In 2012, Hacettepe was one of five universities in the UQ SMI Global Comminution Initiative. PhD Candidate Bariș Yıldırım chose UQ for undertaking research in mining because of the long-standing engagement between the University and his home country. I don t think I would be able to study such a challenging subject at any other university, said Yıldırım. It is a different PhD journey than most. I am thankful to UQ for the opportunities I ve received site studies in Canada and Chile, and experiments in Brazil, Australia and Turkey. The diversification of the research, and engaging with different cultures and world experts, strengthens the value of the PhD. Yıldırım believes that the Turkish mining industry will derive lasting benefits from the collaboration in Australia. The engagement with UQ and SMI through the IMC will support the Turkish mining industry and increase the level of professionalism. It will improve safety, increase social responsibility, train leaders, apply new technologies and develop linkages. If we can save lives and improve efficiency, this will be the ultimate contribution that professionals can make, he said. The dedicated researcher s fondness for Turkey extends beyond his research interests. Yıldırım and supervising colleagues, Professor Malcolm Powell and Dr Deming Wang, at the Julius Kruttschnitt Mineral Research Centre. Turkey has a very complex landscape, with an engaging beauty, even in the central plateau which is my winter home and the people are wonderful, with a complex culture, fine food and overwhelming hospitality, he said. Fairbairn s primary focus is on the excavation of Boncuklu Höyük, the site of a 10,500-year-old village near the city of Konya, which he leads with Professor Douglas Baird from the University of Liverpool. My work is contributing to providing a new understanding of this challenging and unique region s role in the development of ancient civilisations, Fairbairn said. PhD candidate Xavier Carah seized the opportunity to visit Turkey. For millennia, Turkey has been at the centre of empire and civilization a truly fascinating country to visit and experience, said Carah. Fairbairn s team also liaises with the Turkish Ministry of Culture and Tourism, as well as the British Institute at Ankara, which sponsors the Boncuklu Project. His research incorporates collaborative projects between the Japanese Institute of Anatolian Archaeology and Ankara University across several important sites. A number of students also attend Fairbairn s field school each year at Kaman- Kalehöyük, south-east of Ankara, where they assist with sample processing and analysis. Fairbairn and his students efforts in Turkey are long-term endeavours, which have fostered strong connections with local communities. Fairbairn said these connections are particularly strong in Konya, where Boncuklu is based. The excavation provides continuing research fieldwork experiences for students and staff, and fieldwork experience is essential for archaeologists training. He added, I am taking part in developing an exchange program with Hacettepe University in Ankara, and the projects are forming a basis for collaboration. Back at the St Lucia campus, Fairbairn runs a course entitled The Archaeology of Turkey to prepare undergraduate Archaeology students for conducting research in Turkey. Having worked in Turkey each year for 15 years now, Fairbairn s enthusiasm for the country remains strong. The simple fact is that Turkey, as a place, got under my skin, and the archaeological questions there are really engaging, he said. Spring

50 Advertisers index FKK - Inside Front Cover Sandvik - 1 Spektra Jeotek - 3 Barkom - 9 Omoc - 17 Minex - 23 Minerva - 27 Argetest - 39 Petrofer - 43 Teknima - Inside Back Cover Çayeli Bakır - Back Cover Events List June 2-3 Argus Mediterranean Solid Fuels Conference, İstanbul, argusmedia.com June rd Optimising Mine Operations Conference: EMEA, İstanbul, miningoptimization.com August Mining Expo Turkey 2015, İstanbul, demosfuar.com.tr August nd Tunnel Expo Turkey 2015, İstanbul, tunnelexpoturkey.com September 3-5 Mühjeo 2015, National Engineering Geology Symposium, Trabzon, muhjeo2015.org September 7-11 DAJEO2015, Symposium on Eastern Anatolian Geology, Van, dajeo2015.yyu.edu.tr September Stone Teck Machinery Fair, Afyon, machineryfair.com September V. International Conference Mediterranean Coal Markets, İstanbul, October 1-2 V. International Mining Machinery Symposium and Exhibition of Turkey, Eskişehir, madenmakina.org October 1-3 International Energy Raw Materials and Energy Confex (INERMA), İstanbul, inerma.com October 3-4 Mining Law Symposium, Afyon, madenhukukusempozyumu.org October 8-9 Evaluation of Subsurface Resources of Mesopotamia Symposium, Diyarbakır, mezosem.org October rd Geothermal Congress of Turkey, Ankara, jeotermalkongresi.org October nd Coast and Sea Geology Symposium, İstanbul, kdjs2015.com October Health and Safety in Mining Sites Symposium 2015, Adana, madenisg.org October Marble Block and Construction Machinery Fair, Bursa, tblokmermerfuari.com November 4-6 3rd Geothermal Resources Symposium, Ankara, jmo.org.tr November Jeotermal Kaynaklar Sempozyumu, Ankara, jmo.org.tr/etkinlikler/sempozyumlar/index.php?etkinlikkod=108 November nd International Marble, Natural Stone Products and Technologies Fair, İstanbul, cnrnaturalstoneturkey.com November nd Mediacal Geology Symposium, Konya, tibbijeoloji.org November VIII. Drilling and Blasting Symposium, İstanbul, delpatsempozyumu.org December 3-5 Conference on Historical Mining Sites of Turkey, Trabzon, ktu.edu.tr/maden-mt December 9-11 Drilling Symposium, Ankara, jmo.org.tr 2015

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52 Our employees are much more valuable than any metal we will ever mine. Asıl cevherimiz Our real ore çalışanlarımız is our people