Turkey’s mining and metals sector has grown in parallel with the country’s robust economy. Harboring a large expanse of the western portion of the Tethyan-Eurasian Metallogenic Belt, which is an ophiolite extending from the Alps to southeastern Europe through Turkey, the Lesser Caucasus, Iran, and the Himalayas on to China, Turkey offers proven potential for mining investors. As the least exploited portion of the belt, Turkey stands out as a very promising region for companies engaged in mineral extraction.

Here are some essential facts and figures about the Turkish mining and metals sector:

• The sector’s total production value soared to TRY 37.2 billion in 2018; it was TRY 27.8 billion in 2017.
• Turkey’s young, dynamic, and well-educated labor force translates into a high-quality labor pool. There are 56 mining engineering departments in 38 cities in Turkey. The number of mining engineers in Turkey has increased by more than 50 percent since 2005, now reaching almost 38,000. In 2018, around 1,000 new mining engineers were added to the talent pool.
• Turkey’s advantages for companies in the mining sector are not limited to a high-quality labor pool, but also include relatively low logistics and drilling costs, proximity to major markets, lucrative government incentives, and highly competitive taxes.
• As a result of its remarkable economic growth, years of political stability, structural reforms, and the backing of governmental bodies, Turkey attracted USD 183 million of FDI to its mining industry in 2018. Meanwhile, mining exports in the sector totaled USD 3.8 billion in 2018.
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• These figures prove investors’ increased interest in Turkey. As of today, Turkey hosts 773 international mining companies, up from only 138 in 2004.

Turkey’s regional investment incentives system is based on a descending pattern where regions vary in a range of 1 to 6 based on their level of development, with a rating of 6 being given to the least developed regions. With this system, the most advantageous incentives are offered to the lesser-developed regions. Mining is one exception to this scheme, as most investments in the mining sector are supported with incentives extended to Region 5, regardless of the investment’s location. ​​​​

For further information, you can visit: https://www.invest.gov.tr/en/sectors/pages/mining-and-metals.aspx

Source: Republic of Turkey Investment Office / link: https://www.invest.gov.tr/en/sectors/pages/mining-and-metals.aspx
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ND-PPI monthly decreased by 1.20% in the index for mining and stone quarrying and by 0.92% in the index for manufacturing.

Non-domestic producer price index, annual change on same month of the previous year, 2016-2017
[2010=100]

The highest monthly decrease was in computer, electronic and optical products
The highest rates of monthly decrease by sub divisions of industry were indices for computer, electronic and optical products by 3.52%, for beverages by 2.51%, and for other non-metallic mineral products by 2.01%. On the other hand the highest rates of monthly increase in ND-PPI by sub divisions of industry were indices for leather and related products by 1.85%, for paper and paper products by 0.22 and for electrical equipment by 0.20.

The highest monthly decrease in main industrial groupings was in durable consumer goods
According to main industrial groupings classification, the highest rate of monthly decrease was in durable consumer goods by 1.90% in February 2017.

Non-domestic producer price index and rate of changes, February 2017
[2010=100]

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.

• Total export value of the machinery industry reached USD 13.4 billion in 2015, up from USD 5.2 billion in 2005.
• Annual growth rate of machinery exports between 2005 and 2015 was 16 percent, double Turkey’s overall export growth rate during the same period.
• As the 2^nd largest export industry of Turkey, accounting for a 9.3 percent share in Turkey’s total exports, machinery products are exported to more than 200 countries.
• 60 percent of the total machinery product exports are shipped to the EU countries and the USA.
• Total imports of the machinery sector surpassed USD 26 billion in 2015 while posting an average annual growth of 10.3 percent over the past decade, evidencing the strong demand from the domestic market.
• FDI inflow in machinery manufacturing represents a significant source for Turkey’s overall FDI amount, making up around 20 percent of total manufacturing FDI between 2005 and 2015.
• R&D expenditures on machinery manufacturing reached USD 600 million in 2014, accounting for almost 10 percent of the total R&D expenditure of Turkey.
• Turkey’s competitiveness in the machinery sector is driven by favorable input costs and strong enablers. Input costs include competitive labor cost, an affordable and reliable energy supply, and logistical advantages based on the geostrategic location of Turkey, while enablers include a skilled workforce, generous investment incentives, an innovation-oriented infrastructure, and a strong supply base and domestic clusters.

Date: 13 March 2017

Legal Notice: The information in this article is intended for information purposes only. It is not intended for professional information purposes specific to a person or an institution. Every institution has different requirements because of its own circumstances even though they bear a resemblance to each other. Consequently, it is your interest to consult on an expert before taking a decision based on information stated in this article and putting into practice. Neither MuhasebeNews nor related person or institutions are not responsible for any damages or losses that might occur in consequence of the use of the information in this article by private or formal, real or legal person and institutions.