The mining and metals sector of Turkey has grown in parallel with the country's efficient economy. Turkey is home to a large area of the western part of the Tethys-Eurasian metallogenic belt, an ophiolite that stretches from the Alps to southeastern Europe across Turkey, the Little Caucasus, Iran and the Himalayas into China, providing proven potential for mining investors. As the least exploited part of the belt, Turkey stands out as a promising region for mineral extraction companies. Mining in Turkey was limited to superficial excavation, which means that international investors expect huge potential from deep drilling.
These are some of the key facts and figures about the Turkish mining and metals sector:
• The total production value of the sector increased in 2015 to TRY 24.5 billion.
• The young, dynamic and well-educated workers of Turkey offer high quality working capital.
• There are 53 mining engineering authorities in 38 cities in Turkey. The number of mining engineers in Turkey has increased by more than 50 percent since 2005 and now reaches 35,000. In 2016, around 1,200 new mining engineers joined the talent pool.
• Turkey's benefits to mining companies are not limited to high-quality workforce, but include relatively low logistics and drilling costs, proximity to key markets, lucrative government incentives, and highly competitive taxes.
• As a result of its remarkable economic growth, years of political stability, structural reforms and government support, Turkey raised $ 149 million of FDI in its mining sector in 2015, while mining exports to the sector in 2016 amounted to $ 3.5 billion ,
• These figures show that investors have an increased interest in Turkey, as Turkey today hosts more than 790 international mining companies, compared to only 138 in 2004.
The regional investment subsidy system of Turkey is built on a descending pattern, with regions ranging from 1 to 6, depending on their level of development, with 6 being allocated to the least developed regions. This system offers the most advantageous subsidies to the less developed regions. Mining is an exception to this rule as most mining investments are supported by grants that will be extended to Region 5, regardless of the location of the plant.