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Türkiye’s gold rush: 6,500 tons worth $300B

Türkiye's gold rush: 6,500 tons worth $300B The pure gold ore found in the mine on a stone wall (Bloomberg Photo)
By Newsroom
Jun 20, 2024 11:24 AM

Türkiye’s mining sector is poised for substantial growth, according to Mehmet Yilmaz, President of the Turkish Miners Association (TMD), who highlighted a significant gold mining potential of 6,500 tons based on recent modeling studies.

Economic impact: Gold’s $300B underground

Yilmaz revealed that 1,500 tons of this potential have already been tapped into, with an estimated 5,000 tons remaining underground, valued at approximately $300 billion.

Closing the trade gap

Addressing Türkiye’s current gold production of $2.5 billion annually, Yilmaz emphasized the potential to increase this to $8-9 billion annually upon reaching a production level of 100 tons, which could significantly mitigate Türkiye’s gold trade deficit.

Türkiye’s mining resurgence

Yilmaz underscored the importance of domestic production, noting that Turkish companies with entirely local capital now produce 50% of the country’s gold, contrasting with the era when foreign entities dominated Türkiye’s mining landscape, citing the commencement of operations at the Bergama gold mine on May 19, 2001.

Revolution in boron: From ore to high-value products

Switching gears to boron mining, Yilmaz highlighted Türkiye’s dominant position, owning around 70% of global reserves.

He stressed the potential for enhanced value through advanced product development, where transforming raw boron into refined products could yield prices as high as $4,000 per ton, significantly surpassing the current value of $300-500 per ton.

Sustainable mining strategies

Commenting on the impact of green transformation on mining, Yilmaz noted that transitioning away from fossil fuels towards renewable energy sources and battery production would necessitate a 9-fold increase in mining activities.

This shift, he explained, would require intensified extraction of lithium, cobalt, nickel, copper, and even gold to meet the burgeoning demand for renewable technologies like solar panels and wind turbines.

Last Updated:  Jun 21, 2024 11:13 AM