GENERAL INFORMATION ABOUT THE MINING SECTOR
Mining, which holds a significant place in human life, has evolved from simple stone objects in the ancient ages to its current state. Throughout history, it has been one of the factors contributing to the strength and development of countries and societies. Mining is one of the two fundamental production areas through which humans meet their raw material needs, alongside agriculture. In today's context, mining is conducted in harmony with the environment and society within the framework of sustainability. Due to being the sole means of access to strategic energy raw materials, valuable metal resources, and essential raw materials for the industrial sector, it holds high importance for both developed and developing economies. Mining investments, with the highest added value and employment capacity among sectors, also contribute to preventing irregular migration to cities as they are commonly executed in rural areas, aiding in establishing socio-economic balance and supporting regional development. Hence, developed countries often emphasize the significance of the mining sector. Proper planning and policy adherence demonstrate that the mining sector serves as a significant driving force for a country's economy.
MINING AROUND THE WORLD
Countries holding substantial shares in global mineral reserves and playing a leading role in production include the United States, China, South Africa, Canada, Australia, and Russia. Additionally, in the production of primary energy sources such as oil and natural gas, Saudi Arabia, the United Arab Emirates, Iran, Russia, Venezuela, and the Turkic Republics of Central Asia possess significant reserves. In world trade, non-ferrous metals (chrome, copper, zinc, etc.) and industrial minerals hold a significant position in terms of export values within the mining products. The mining sector serves as a primary supplier of raw materials for numerous industries, making it a cornerstone of the global economy. For instance, in the United States, a leading force in the world economy, the total production of mining and mining-based industries amounts to $27.6 billion, contributing a total added value of up to $2.28 trillion to the U.S. economy. Similarly, in Canada, another significant player in the global mining landscape, the total mining production in 2009 was around $45.3 billion, generating tax revenues of approximately $13.5 billion annually. Investor interest in the mining sector continues to rise, with countries such as Canada, Australia, and the United States leading in investment in mining exploration activities, accounting for approximately 69% of the total exploration budget of $12.6 billion USD. Mining prices fluctuate periodically based on supply and demand in metal and mineral markets. Particularly, high demand levels from growing economies such as China, Brazil, and India since 2001 have been a driving force behind the intense growth of the global mining industry. The strong demand increase led to significant price hikes in metals between 2002 and 2008. However, these positive developments came to a halt around the end of 2008 due to the global crisis, but from 2009 onwards, as the global economy recovered and demand increased, the sector entered a phase of recovery again. Currently, over 10 billion tons of minerals valued at around $1.5 trillion USD are produced annually worldwide. Of this figure, 75% constitutes energy raw materials, 10% metallic minerals, and 15% industrial raw material production, underscoring the critical importance of the mining industry for the global economy.
Table below shows the general production rates of major minerals in industrialized countries according to the world's population rates:
The raw materials for many metals used in our daily lives are obtained through mining. The following examples are important in emphasizing the significance of mining:
400 tons for an average residence,
30,000 tons for 1 km of highway,
30,000 tons for a medium-sized school/hospital,
300,000 tons of aggregate for a stadium with a capacity of 5-30 thousand people.
As another example, the production of a car requires the consumption of 5 tons of minerals.
Considering both production and consumption as well as employment data, it is crucial to approach the sector with particular sensitivity, holding significant potential for all countries.
(Source: Grand National Assembly of Turkey Research Commission Report, May 2010, pages 228, 229, 282, 283).
TURKISH MINING SECTOR
Due to our country's geological structure and the influence of active and intense tectonism, we have a variety of minerals, but generally smaller-sized reserves compared to the world scale. Currently, around 90 different types of minerals are produced worldwide, while our country produces approximately 60 types of these minerals. According to the General Directorate of Mineral Research and Exploration (MTA), among 132 countries globally, our country ranks 28th in terms of the total value of mineral production and ranks 10th in terms of mineral diversity.
Primarily, our country is rich in terms of industrial raw materials, certain metallic minerals (chrome, iron, copper, zinc), lignite coal, and energy raw materials such as geothermal sources. Our country holds 2.5% of the world's industrial raw material reserves, 1% of coal reserves, 0.8% of geothermal potential, and 0.4% of metallic mineral reserves. The most significant mineral reserves we have consist of boron minerals, accounting for 72% of the world's reserves. However, apart from boron and a few other minerals, our reserves are limited on a global scale.
Out of the 90 types of minerals and ores traded and produced worldwide, the presence of 13 at an economic scale has not yet been determined in our country. While our country is partially self-sufficient in 50 types of minerals, the known reserves and qualities of 27 minerals and ores are insufficient for economic mining. Our country could be considered among the countries partially self-sufficient in terms of mineral resources and diversity.
GOLD MINING IN THE WORLD AND IN TURKEY
General Information
Gold has been one of the most favored metals due to its fundamental functions since ancient times. Its essential functions include being used as jewelry, a means for accumulating wealth and exchange, easy workability, durability, and widespread usage in various industries (such as electronics, aerospace technology, medicine, dentistry, decoration, and engineering). 43% of the gold produced globally is used for jewelry, 15% for gold coins, 37% for electronics, and 5% for dentistry. The world's total recoverable gold reserves amount to 56,000 tons. Nearly 50% of these reserves are shared among the leading gold-producing countries like South Africa, the USA, China, Australia, Canada, and Peru. According to USGS estimates, the world's gold production is around 3,000 tons (2015), with 51% of this production taking place in these six countries. From 2002, there was a continuous increase in gold production; however, from 2013 onwards, there was a slowdown, with total gold supply decreasing by 0.1% to 3,147 tons in the first three quarters of 2014 compared to the previous year. During this period, there were increases in gold consumption in India (39%) and the USA (3%), while decreases were recorded in China (-37%), Turkey (-13%), and Indonesia (-45%). During this period, approximately 1/4 of the gold in the market was obtained through recycling, while the rest was procured through mining. The known and ongoing gold exploration sites in our country are concentrated in the Aegean, Eastern Black Sea, Inner Western Anatolia (Kaymaz), and Eastern Anatolia regions. The currently operational gold deposits in our country contain varying amounts of gold ranging from 1.2 grams to 12.65 grams per ton. Consequently, our operable gold reserves total 840 tons in metal terms. Based on our geological structure and global gold formation models, it is estimated that Turkey's gold potential is around 6,000-7,000 tons. As of 2017, there are 13 active gold mining operations in our country. The total production in 2017 was at the level of 21 tons (in metal gold); over the past 17 years (from 2001 to 2017), a total of 273 tons of gold has been produced, equivalent to 55 tons of gold in taxes paid to the state. Our country ranks fifth in the world in terms of gold demand. Until 2008, more than 200 tons of gold were imported annually, of which approximately half was exported in the form of jewelry after processing. Our country ranks second in the world after India in the production of gold jewelry. Gold imports in Turkey were 231 tons in 2007, 166 tons in 2008, 37 tons in 2009, 42 tons in 2010, 79.7 tons in 2011, 157.63 tons in 2012, 302 tons in 2013, and 131 tons in 2014 (2015 import data is missing), totaling 3,215 tons over the past 20 years. Due to the excessive increase in gold prices in 2009 and 2010, there was a significant decrease in gold imports, and the need was met through scrap gold used in domestic markets. There is a specific sensitivity in public opinion towards gold exploration and mining activities, especially regarding cyanide usage. However, in today's gold mining, cyanide is not used at any stage of the exploration. Just as coal, copper, iron, boron, and other minerals are explored, gold is similarly explored. In gold mining, cyanide is used in closed facilities, taking all kinds of safety precautions, for the recovery of metal gold from the raw ore extracted from the mine and within the scope of Environmental Impact Assessments (EIA). Therefore, the used cyanide does not come into contact with nature and humans. So far, there has been no hazardous situation encountered concerning human and living beings in gold mining operations. Approximately 1.5 million tons of cyanide is consumed annually worldwide. 18% of this (270,000 tons) is used in the mining sector, while the remaining 82% is used in textiles, synthetic fabrics, nylon, rubber, auto tires, metal processing-steel hardening electroplating, galvanizing, jewelry making, pharmaceuticals, pest and insect control, indigo production, optical brighteners, and photography. 85% of the world's gold production is also done using the cyanide process. In Turkey, 300,000 tons of cyanide are imported annually, of which only 4-5 thousand tons (1.5%) are used in gold mining.
Gold Production and Usage
Currently, over 900 gold-silver mines are in operation worldwide. Gold production in the world in 2011 was approximately 2,800 tons. China ranks first in the world in gold production with a share of 13%, followed by Australia at 10%, the USA at 9%, Russia and South Africa at 8%. As global consumption exceeds production, there is a demand deficit. According to 2010 data, Turkey is not listed in the rankings of gold production worldwide; however, it ranks third in per capita gold purchases. Additionally, the Turkish jewelry sector ranks second worldwide after India and exports $1.5 billion worth of goods to 70 countries annually. Turkey produced 29.5 tons of gold in 2012 and imported 120 tons to meet the demand. Traditionally, gold is used in Turkey as jewelry and as an economic saving tool. Due to its excellent electrical conductivity, ease of being shaped, and resistance to corrosion, gold is used in a wide range of products like computers, phones, and home appliances. Gold has extremely high reflectivity and is safely used in industrial and medical lasers as gold-plated reflectors to protect space vehicles and satellites from solar radiation and to focus light energy. Since gold is biologically inactive, it is essential for medical research. Some uses of gold are listed below:
Electronics and Telecommunications: The most critical use of gold is as a thin wire connecting circuits in semiconductors or as the "brain" of electronic and telecommunication systems. Some applications of gold in electronics and telecommunications include:
- Computers / semiconductors
- Mobility devices
- Spacecraft
- Phones and wall sockets
- Televisions and displays
Medicine and Health: Gold is invaluable for modern medicine due to its non-toxic and biologically safe properties. It is one of the most effective electrical conductors and is visible under an electron microscope. Gold is nearly indestructible, but since it is a soft metal, it is easy to work with, shape, flatten, and divide into microscopic fibers. Some uses of gold in medicine and healthcare are:
- Dentistry
- Eye surgeries
- Laser applications
Jewelry: In addition to the industrial uses listed above, gold plays an important role in the financial security of individuals. Gold gifts hold a significant place in social life as valuable presents in emotional events, bringing people together on special occasions. The use of gold as jewelry has a history of over 6,000 years. The earliest known use of gold as jewelry dates back to the developing Sumerian civilization between 4,000 BC in the fertile lands between the Tigris and Euphrates rivers.
Economic Tool: Although not the foundation of the international financial system, gold is still considered an important reserve value by many central banks. Unlike currency, the value of gold is not affected by the economic policies of a country or the inflation within that country.
Use of Silver
Silver also has a wide range of uses, much like gold. It is one of the oldest materials used in making silver coins. The Romans used silver as early as 269 BC in this way. As silver is a good electrical conductor, it is used in various electrical applications such as switches, connections, and fuses. Because silver does not corrode and does not cause extreme heat that could lead to fire due to corrosion, it is used in household switch contacts. Tarnishing of silver does not hinder its electrical conductivity. Almost every electrical device, contact, switch, microwave, dishwasher, television, toy, and every computer contains silver. Silver is also an excellent conductor of heat, so one of its uses is in the rear window defrosters of cars. Thin ceramic and silver lines conduct heat to the glass, clearing ice and condensation. Silver is used as a coating material for mirrors, glass, and other materials. Metals are coated with silver through a process called electroplating. Silver has various uses in the healthcare sector. For example, silver sulfadiazine is a very potent compound used to heal burns and is sometimes used in dental fillings. One of the most common uses of silver is in photographic paper and film. Approximately 5,000 color photographs can be taken with one ounce of silver.
VALUABLE METAL USAGE IN OUR COUNTRY:
The areas in which gold is used in the world and in our country are; jewelry, gold plating, decoration, electrical/electronic, dentistry, decorative use, medal production, official currency, and ingot stocks. In addition, metals such as silver, platinum, and palladium are used in the aerospace industry, in the textile industry for making gold wires and threads, and in the chemical industry for making corrosion-resistant tools. Due to its wide range of uses and its classification as a precious metal, the demand for gold has always been high. In terms of its strategic importance, central banks, especially the Central Bank of the Republic of Turkey, are increasing their gold reserves. China holds the top position in gold production worldwide. According to 2011 data, China ranked first with 351 tons of gold, Australia ranked second with 258 tons of gold production, and the USA ranked third with 232 tons of gold production. In 2011, global gold production was 2,800 tons, while the demand for gold was 4,500 tons, which was met by scrap gold. As a result of investments made in gold mining in recent years, gold production has increased every year in our country, and in 2012, approximately 29.5 tons of gold, valued at around 1.7 billion dollars, was produced. Our country holds an important place in the world market for raw gold imports and processed gold exports. According to data from the Istanbul Gold Exchange, 120 tons of raw gold were imported in 2012. In contrast, processed gold exports in 2011 amounted to 55 tons. Traditional markets for Turkey's processed gold exports include the United Arab Emirates, Switzerland, and the United Kingdom. Among these, the most exports were made to Switzerland. In terms of processed gold exports, our country ranked second after India in 2012. In terms of gold reserves in banks worldwide (as of September 2012), the United States ranks first with 77%, Germany second with 74%, and Turkey ranks 18th with a 15% reserve. Like in all countries worldwide, the exploitation of underground resources in Turkey is very important for the development of industry and employment opportunities.