Turkish mining legislation gives operating companies a right to explore and operate mines in the country through the issue of licences which are subject to a state royalty payment. Following the passing of legislation in 2004, Turkey has welcomed increased foreign investment into the sector, consequently enabling Turkey the leading gold producer in Turkey. In 2009, the mining law was reviewed in a bid to clarify and build upon elements of the existing legal and environmental framework which was previously open to a degree of interpretation under the 2004 legislation. In line with international standards, the new Turkish mining law was passed in 2010. In 2014 modifications to the mining law were ratified. Click to download the translated 2014 mining law amendments.
Turkish mining law divides minerals into six groups including precious metals under-which gold is classified. The exporation period is currently 7 years and the period in which mining activities can begin following the successful application for an operational permit is one year. Currently if a company holds an operation licence but fails to untertake physical production, 10% of the royalty is payable as a penalty.
If gold mining activity occurs on state owned land the licence holder is required to pay an additional 30% royalty, whereas stated owned forestry land requires a royalty payment direct to the Forestry General Directorate. If extracted ores are processed in Turkey (thus providing additional value to the Turkish economy), only 50% of the royalty needs to be paid.
Mining Law Changes in 2010
The new mining law introduced in 2010 has bought about a number of changes to licence royalty payments, for a detailed description of these changes, click here.
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