Frost & Sullivan's Global Metals & Minerals Consulting Services: Mining Opportunities in Turkey -...

Mining Opportunities in Turkey - CEO Perspective

A Frost & Sullivan White Paper

Metals & Minerals Consulting

https://www.linkedin.com/groups/Frost-Sullivan-Metals-Minerals-Network-5180300

2

About Frost & Sullivan

Frost & Sullivan, the Growth Par tnership Company, works in collaboration with clients to leverage visionary innovation that addresses the global challenges and related growth opportunities that will makeor break today's market par ticipants. For more than 50 years, we have been developing growth strategiesfor the global 1000, emerging businesses, the public sector and the investment community. Is your organization prepared for the next profound wave of industry convergence, disruptive technologies, increasing competitive intensity, Mega Trends, breakthrough best practices, changing customer dynamics andemerging economies?

About Metals & Minerals Practice:

The Frost & Sullivan Metals & Minerals (M&M) specialize in closely monitoring the Global metals, minerals & mining marketplace to provide critical information, opportunities, and strategic recommendationsfor market participants. From mining to mill to markets, Our M&M Practice brings together industry expertsfrom Iron & Steel, Aluminum, Copper, Zinc, Lead, Tin, Titanium, Minerals,and Mining industry handled projectsacross value chain. We have developed comprehensive capabilities focused on each segment combinedwith specific approaches, methodologies, tools & techniques to enable our clients grow their business.

From small to large companies, our mission is to provide deeper insights, practical solutions, and actionable recommendations at every stage of development. We help some of the leading metals and miningcompanies to make critical decisions on Investments, Strategy, Business Excellence, Mergers & Acquisitions.

Why Us?

50 Years we have been into this business! Domain Expertise:

Metals & Minerals practice analyst & consultants are domain specific professionals Proven Success:

We have been retained as a trusted partner for leading metals & mining companies through 100+ GrowthConsulting engagements

Diversified Industry Coverage & Network:Frost & Sullivan’s 10 industry vertical coverage by 1700+ consultants across 45 Global locations ensures holistic perspective on your business. Be it your vendor or end customer, we do work with your peers

Comprehensive Service Offering:From mines to mills to markets, we offer comprehensive list of consulting services

CEO 360 ON TURKEY MINERALS MARKET OPPORTUNITY

3

© 2014 Frost & Sullivan

What Do We Cover?

Our Service Portfolio:

Detailed Feasibility Study (DFS)

Pre-Feasibility Study (PFS)

Strategic Growth Consulting

Market Assessment

Customer Research

Manufacturing Assessments

Joint-Venture Partnership

Market & Price Trackers

Events, Think-Tank Sessions

Where We Can Help?

Our metals & minerals experts can deliver in all aspects of your business decision making for:

Competitive Intelligence

Marketing Strategy

Procurement Intelligence & Supply Chain Management Evaluation

New Business Model Development

Location Feasibility

Mine Valuations & Financial Models

On-Site Manufacturing Assessments - Cost Optimization & Operational Efficiency

Equity & Technology Partner Prospecting

Customer Retention

Pricing Strategies

Carbon Steel Stainless steel

Alloy steelTool steel

Metal OresGraphite & CarbonIndustrial Minerals

Minerals for Refractories & Oil Field

Fused Minerals

AluminumCopper

ZincTin

TitaniumLead

NickelPrecious Metals

Rare Earth Metals

Our Clients:

Government Ministries

Mining Companies & Smelters

Private Equity & Investment Houses

Metal Manufacturers/Suppliers - Casting, Forging & Rolling Mills

End-users/Buyers

Technology Providers - Machinery & Factory Automation Vendors

EPC Firms

Traders

Industry Associations

* Indicated List

Contact us for detailed case studies & to discuss your growth prospects...

Our List of Projects *

4


Ferrous Engagements & Advisory

v Flat Steel Products (HR, CR, Galvanized & Pre Painted) in MENA

& South Asia Region

v Strategic analysis on Billets & Rebars market; Identification of Export

Opportunities

v Market Feasibility for Long and Structural Steel Products in Morocco

v Assessment of Pipe Spools and Fabricated Plate work products in

GCC

v Assessment of Clad Pipes, Stainless Steel Pipes, Alloy Steel Pipes

in MENA Region

v Assessment of Metal Packaging Products in Select MENA countries

v Detailed Business Plan for Setting Up Steel Coil Service Center

(SSC) in India

v The Indian Flat Steel Industry Outlook and Analysis of the

Significance of Service Centers for the Steel Market

v Detailed Feasibility Study for Pipe Fittings in MENA regions

v Market Mapping of Structural Steel in KSA & UAE

v Strategic Advisory for Setting up a Steel Billet Plant in KSA

v Advisory on High Purity Pig Iron (HPPI) Market

v Feasibility Study for Setting up a Steel Billet Plant in Indonesia

v Feasibility Advisory for Setting Up a Tin Plate ManufacturingUnit

v Corrosion Resistant Steel Rebars (CRS) demand in New Segments

v Demand Assessment for Sheet Metal Components & Ferrous

Castings in selected countries

v Business Plan: Galvanizing Facility for Structural Steel Sections in

Qatar

v Analysis on Steel Billets & Rebars Market in GCC & African Region

v Special Bar Quality (SBQ) market in India

v Steel Pipes & Tubes market in India

v Mapping of Galvanized Steel Tubes market in the India

v Advisory on Setting up Forging Plant Focused on Non-automotive

Segments

v Demand assessment for Low Relaxation Pre-stressed Concrete

Strands in India

Non-Ferrous Engagements & Advisory

v Detailed Feasibility Study for Setting up of Aluminum Foils unit in Oman

v Global Assessment of Aluminum Rods & Bare Conductors Markets covering around 40 countries across South Asia, South East Asia, ANZ, Middle East, Africa, Europe, North & Latin America

v Advisory on Market Entry for Copper Fabricated Products in Middle East and Africa comprising of Wire rods, Bars, Strip, tubes, profiles, ingot, alloys etc

v Pre-Feasibility Study on Aluminum Powders Project in Middle East and Identification of JV Partner for the project

v Broad Regional Analysis on the Aluminum Coils, Sheets & FoilsMarket across the Globe

v Advisory on Precious Metals Market Opportunity (Gold, Silver, Platinum, Palladium)

v Advisory on Global Zinc Market & Study on Demand for Zinc across Indian Subcontinent

v Advisory on Developing Business Plan for a JV company in Middle East to Manufacture Aluminum Billets & Extrusions

v Global Market Assessment of Aluminum Clad Steel Wiresv Study of Phosphor Bronze (Copper Alloy) Market in India and

mapping the replacement potential for the High performance plastic in India

v Detailed Feasibility Study for setting up Copper Tubes Manufacturing unit in Middle East – including Market Assessment, Engineering Analysis and Financial Modelling

v Procurement Intelligence:- Analysis of Aluminum ScrapSourcingand Availability in GCC Market

v Advisory on Aluminum Coated Coils Market in Middle East and North Africa region

v Market Opportunity Analysis for Titanium Fabricated Products (Pipes, Sheet & Plates) in MENA region

v Assessment of Aluminum Downstream Investment Opportunities in Saudi Arabia for Japanese Investors

v Strategic Assessment of Manufacturing Capabilities – Metal Injection Molding, Aluminum and Copper Extrusion in GCC

v Market Assessment on Aluminum Dross and Scrap Recycling

Mineral & Mining Advisory

v Strategic Business Plan for the Leading Chromite Manufacturer in Middle East and Identify Opportunity in the Chromite Downstream Value Chain for Future Development

v Market Advisory on Industrial Minerals like Calcined Magnesia, Kaolin, bauxite and understand potential of other minerals (including Silica Sand, Quartz, Gypsum, Kyanite, Limestone & Ceramic Proppants) within MENA Region to Formulate Future Business Strategy

v Market Assessment of Lime Stone, Lime, GCC, PCC & Soda Ash with in MENA Regionv Market Assessment of Rare Earth Minerals in India and Analysis of Govt. Policy on FDI in Rare Earth Mining in India vis a vis Global Scenariov Strategic Market Analysis for High Purity Manganese Sulphate Across America, Europe & Asian Continentsv Strategic Roadmap for Growth Opportunities in the Ferro Manganese and Silicon Manganese Market Across Middle East and European

Geographiesv Advisory services on Company Identification and Due Diligence in Africa for Acquisition/ Joint Venture in Ferro Silicon and Silicon Metal

Industryv Detailed Market Assessment Study for Mineral Sampling, Preparation & Testing Equipment in Indiav Ferroalloys – Identification and Assessment of Potential Ferrosilicon manufacturers in Africa for JV/acquisitionv Strategic Advisory on Graphite Electrodes Mfg Unit Focused on MENA Crude Steel Industry


5


TABLE OF CONTENTS Page

1. Introduction .................................................................................................................................5

2. Macro-level Analysis ....................................................................................................................6

3. Market Opportunities-Turkey mining industry .......................................................................7

4. Key metals and minerals.............................................................................................................8

5. Conclusion ...................................................................................................................................9

Chandrakumar BJGBusiness Development - Metals & [email protected]: +91 44 6681 4424Mobile: +91 9840 365 395

For More Information, Contact:

Contact us for case studies & to discuss your growth prospects...

Y.S ShashidharManaging Director - Middle

East, North Africa & South Asia

S VenkatesanGlobal Leader & Vice President

Metals & Minerals


6


Introduction

Turkey has metal industries which produce 60 different metals and minerals that are commercially viable for exploitation.It possesses the largest resources and is the richest amongst other countries in the world in terms of minerals. It holdsthe 28th position in the production of underground resources in global rankings. When it comes to marble and travertineexporting countries, Turkey tops the chart and ranks third in overall natural stones exports.

According to World Trade Indicators, Turkey has the fifth most liberal trade policies globally. Its location enables easyaccess to multiple markets such as those in Europe, Asia, the Middle East, and African countries, making Turkey a dynamicand stable economy amongst other EU countries.

Exhibit 1: Turkey Industry Position

Source: Ministry of Industry-Industry Reports; Frost & Sullivan

According to the Directorate General of Mineral Research and Exploration (MTA), the market value of Turkey’s knownmineral resources is USD 2.50 trillion. Turkey possesses 73.5 percent of world boron reserves and 33 percent of worldmarble reserves and it holds 10th position in the world for mine diversification with the largest range of minerals.

Turkey-Global Industry Positions

Reinforced Bars Production 1st

Mega Yacht Building 3rd

Glassware Production 3rd

Jewellery 4th

Ship Building 4th

Marble Production 5th

Cement Production 5th

Tourism 7th

Turkey-Global Industry Positions

Commercial Vehicle Production

1st

Medical Ceramic Devices 1st

Steel Production 2nd

Automotive Production 7th


7


Macro level analysisEconomy

Turkey, a newly industrialised country with a gross domestic product (GDP) of USD 786 billion and per capita incomethat nearly tripled and exceeding USD 10,000, is ranked the 18th largest economy in the world. The key factors thatare believed to be the driving force for Turkey’s economy are lower inflation, which will decrease to 5 per cent by 2025,high FDI, which will reach USD 47.30 billion by 2025, and lower unemployment, which is expected to decrease by 4.6per cent by 2025.

Mining & Quarrying sector contribution to GDP

Globally, Turkey is ranked 10th as a producer of minerals in terms of diversity. As of 2013, about 60 different mineralswere produced in Turkey. The richest mineral deposits in the country are boron salts, with 72 per cent global reserveshare. It is a leading producer of feldspar, marble, barite, celestite (strontium), emery, limestone, magnesite, perlite, andpumice.

Foreign Direct Investment in Turkey

In 2013, FDI inflows to Turkey has managed to move towards the positive side but when compared to 2011 it is still onthe lower side, in line with the global FDI flows. However, the mining sector managed to remain on course attractedUSD 729 million in FDI between 2008 and 2013.

Government incentives:

The Turkish Government is moving towards large-scale privatisation of mining activity to attract foreign investments.The mining law in 2010 stated that a foreign company could hold 100 per cent of Turkish exploration / operationslicence provided the company is set under the Turkish law. The VAT Law amends to exempt the gold mining industryfrom paying VAT on its activities, which helps Turkey to be stable and competitive with other countries by reducing thecost of mine construction and production of precious metals.


8


MARKET OPPORTUNITIES - TURKEY MINING INDUSTRY

In 2013, Turkish industrial production expanded 3.4 per cent which was 2.5% more than the previous year.

Exhibit 2: Mapping of Select Minerals Deposits in Turkey

Source: USGS; Frost & Sullivan

Turkey is one of the few countries in Europe that provides most of its raw materials in spite of the complex geologicstructure, which makes mining and exploration more difficult

Exhibit 3: Mineral Reserves in Turkey

Mineral Reserve (‘000 MT)

Boron (24.4 – 35% B2O3) 4,600,000

Chrome (over 20% Cr2O3) 26,000

Gold (in MT) 800

Salt (88.5% NaCl) 5,733,708

Clay (ceramic + refractory) 354,362

Trona 836,317

Feldspar 239,305

Fluorite 2,538

Iron Ore (55% Fe) 122,000

Zinc 2,294

Perlite 5,733,708

Lignite (868-5000 Kcal/kg) 12,000

Silica Sand 1,307,414

Pumice 1,479,556,876 (m3)



9


KEY METALS AND MINERALSBORON:

The most commonly found boron minerals in Turkey are colemanite, tincal, and ulexite. These minerals are sodium, calcium, and sodium + calcium based boron composites, respectively. Boron minerals are first value added (concentrated boron)by being exposed to a physical process and then refined to form various boron chemicals.

Exhibit 4: Boron Mineral Reserve-Turkey

GLOBAL DEPOSIT OF BORON MINERAL RESERVE:

Turkey was termed as Boron country with 72.20 per cent of the totalglobal reserves of 1,176.0 million MT in 2013. Along with Turkey Russia and the USA are the key centres of boron deposits holding87.5 per cent of the global deposit in 2013 .The Boron reserves inTurkey are mainly found in regions like Balikesir, Eskisehir, Kutahya 1,and Western Anatolia.

KEY APPLICATIONS:

Major application centres of boron are the glass sector (fibreglass,glass wool, and borosilicate glasses), ceramic industry, chemicals, detergents sector, and polymeric materials.


Mineral Name Boron

Appearance Black – brown

Crystal structure Rhombohedral

Boron Mineral Reserve in Turkey

Reserve Quantity (MT)

Proven Resource 227,000

Probable Resource 624,000

Total Resource 851,000

Boron Mineral Reserve in Turkey

Country Total Reserves B2O3

(Million MT)Reserve (%)

Turkey 851 72.20

Russia 100.0 8.50

USA 80.0 6.80

Chile 41.0 3.5

China 36.0 3.1

Peru 22.0 1.9

Bolivia 19.0 1.6

Kazakhstan 15.0 1.30

Argentina 9.0 0.8

Serbia 3 0.3

Total 1,176.0 100

Exhibit 5: Global Boron Mineral Reserve



10


BORON MINERAL - GLOBAL MARKET SCENARIO

Globally, around 33 million MT of Boron productions are consumed by the glass industry and ceramic-frit industry.

Exhibit 6: Boron Global Market Scenario

Source: Frost & Sullivan

BORON - TURKISH MARKET SCENARIO

Turkey boron mineral production registered its record high production of 3.0MT in 2013, which is 20 percent highwhen compared to the production of 2011.

Exhibit 7: Boron- Turkish Market Scenario


Glass56.0%

Ceramics15.0%

Agriculture11.0%

Detergents6.0%

Ferro Boron2.0%

Others*10.0%

Boron Mineral Production Break-up by End-use Application, Global, 2013

0.0

10.0

20.0

30.0

40.0

50.0

2008 2009 2010 2011 20122013

41.0

35.1 35.0

45.5 46.049.0

Year

Pro

du

cti

on

(M

illi

on

MT

)

Boron Mineral Production, Global, 2008–2013

0.0

1.0

2.0

3.0

2008 2009 2010 2011 20122013

1.3 1.0

2.0 2.1 2.5

3.0

Boron Mineral Production, Turkey, 2008–2013

Pro

du

cti

on

(M

illio

n M

T)

Year

0.0

200.0

400.0

600.0

800.0

1,000.0

1,200.0

1,400.0

20092010

20112012

2013

896.0 805.0

1,332.0

595.0 565.0

Exports, Turkey, 2008–2013

Ex

po

rt (

MT

)

Year


11


FELDSPAR:

Turkey is the second largest producer of feldspar with the south-east feldspar triangledefined with Izmir in the north, Cine in the east, and Gulluk in the west being the majorproduction centre. It mainly consists of coarse-grained quartz, albite, oligioclase, microcline, apatite, ortoclase, muscovite, and opaque minerals. Sodium feldspar deposits are located in the south-western part of the country (Menderes Massive), covering an area of 200 x 300 km.

Turkey possesses 10 per cent of the total world feldspar reserves. The country’sfeldspar reserves are estimated to be 239 million tonne (visible and potential). The important reserves are located in Manisa/Demirci, Kutahya/Simav, Aydın/Cine, andMugla/Milas.

Exhibit 8: Feldspar Deposits in Turkey


Mineral Name Feldspar

Formula(KAISi3O8 -NaAISi3O8 –CaAl2Si2O8)

AppearancePink, white, grey,

brown

Crystal systemTriclinic or monoclinic


12


GLOBAL DEPOSIT OF FELDSPAR MINERAL RESERVE:

Turkey and Italy dominate the feldspar production with combined volumes of 9.1 million MT. The rise in world production of white bodytile and granite tile has increased the demand for feldspar

KEY APPLICATIONS:

Feldspar applications are used as filler materials in paint, plastics, andthe rubber industry and as additives in sealants and the adhesives industry. However, the majority of the consumption is in the glass andceramic industry.

FELDSPAR - GLOBAL MARKET SCENARIO

Global production of feldspar depends on the consumption of glass making and ceramic industries.

Exhibit 10: Feldspar Global Market Scenario

Country Total Reserves (Million MT)

Reserve(%)

Italy 4.7 24.4

Turkey 4.4 22.8

China 2.2 11.4

France 0.7 3.6

USA 0.6 3.1

Japan 0.6 3.1

Spain 0.6 3.1

Thailand 0.6 3.1

Others 4.9 25.4

Total 19.3 100

Exhibit 9: Global Feldspar Mineral Reserve



Glass Making60.0%

Ceramics30.0%

Paint3.0%

Others7.0%

17.0

18.0

19.0

20.0

21.0

22.0

23.0

2008 2009 2010 2011 2012 2013

21.6

22.8

19.6

21.3

22.723.0

23.0 Million MT

Pro

du

cti

on

(M

illio

n M

T)

Year

Feldspar Production, Global, 2008–2013 Feldspar Production Break-up by End-use

Application, Global, 2013


13


FELDSPAR - TURKISH MARKET SCENARIO:

Turkey is the number one exporter of feldspar, globally, accounting for 55 per cent by quantity with production levelsof 3.2 million MT in 2013; the major importing countries being Italy, Spain, Russia and Poland.

Exhibit 11: Feldspar-Turkish Market Scenario

PUMICE STONE:

Pumice is a type of pyroclastic igneous rock, which is light and porous. It is formed fromlava that is filled with several gases. During volcanic eruptions, liquid lava is emitted. Asthe lava smashes through the air, it cools and the gases flow out from the rock, leavingholes. All types of igneous rocks can be transformed to pumice rock if the eruptive conditions are suitable. When greater amounts of gas exist in the rock, the result is a finger-grained variety of stone, termed as pumice stone.

Turkey has 3 billion cubic metre (m3) of pumice reserves, most of which are found inKars, Isparta, Nevsehir, Van, Agri, Kayseri, Ankara, Bitlis, and Mugla.

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

2008 2009 2010 20112012

2013

6.8

4.2 5.0

6.0

7.1 7.0

Feldspar Production, Turkey, 2008–2013

0.8

0.1

0.14

0.39

0.85

1.8

0.0 0.5 1.0 1.5 2.0

RoW

UAE

Poland

Russia

Spain

Italy

Pro

du

cti

on

(M

illi

on

MT

)

Year

Export (Million MT)

Feldspar Export by Destinations, Turkey, 2013


Chemical Composition

SiO2 60–75

Al2O3 13–17

Fe2O3 1–3

CaO 1–2

Na2O-K2O 7–8


14


Exhibit 12: Pumice Deposits in Turkey

GLOBAL DEPOSIT OF PUMICE STONE RESERVE:

Globally, pumice is produced in nearly 40 countries, amongst whichTurkey and Italy are the leading producers, followed by Iran, Greece,the Kingdom of Saudi Arabia (KSA), Chile, and Ecuador.

Turkey (28 per cent), Greece (24 per cent), and Germany (23 percent) account for about 75 per cent of its global trade. Indonesia (10per cent), Iceland (5 per cent), and Japan (4 per cent) are the othermajor exporters.

KEY APPLICATIONS:

Pumice is used in making lightweight construction materials such asconcrete block and concrete, while end-use segments such as abrasives, horticulture, and landscaping have reported increased consumption levels.



Country Production (Million

MT)Production

(%)

Turkey 4.5 26.5

Italy 3.0 17.6

Iran 1.5 8.8

Saudi Arabia 1.0 5.9

Chile 0.9 5.3

Ecuador 0.8 4.7

RoW 5.3 31.2

Total 17.0 100

Exhibit 13: Global Pumice Mineral Production


15


PUMICE STONE - GLOBAL MARKET SCENARIO:

Global production of pumice and related material declined by 3.4 per cent in 2013 when compared to previous years,which managed to reach only 16.7 million MT. However, production is expected to pick up with recovery in global markets, which is likely to boost the demand for the mineral

Exhibit 134 Global Pumice Market Scenario

PUMICE STONE - TURKISH MARKET SCENARIO:

Turkey is the world’s third largest exporter of pumice stone, with exports totalling to about 110,000 MT. The majormanufacturers of pumice stone in the country are Şenyildiz Kim, Mad.Tic.Ve San. A.Ş, Ucler Madencilik Ithalat IhracatSan.Tic.Ltd.Sti., Hazal Lojistik Nakliyat Tic.Ltd.Şti., and Yiğitler Teks.Inş.Ve Turz.A.Ş.Turkey’s 98% of the pumice stone produced is consumed domestically while remaining 2% is exported.

Exhibit 15: Pumice-Turkish Market Scenario

15.5

16.0

16.5

17.0

17.5

18.0

2008 2009 2010 2011 2012 2013

16.7

16.4

17.3

18.0

16.516.7

Abrasives7.6%

Building block54.2%

Admixture and

aggregate 21.1%

Horticulture12.1%

Others*5.0%

16.7 Million MT

Pro

du

cti

on

(M

illio

n M

T)

Year

Pumice Production break-up by End-use

Application, Global, 2013

Pumice Production, Global, 2008–2013




16


CHROMITE:

Chromite ore is found in peridotite from the earth’s mantle. It also occurs in layeredultramafic intrusive rocks and in metamorphic rocks such as serpentinites. It is thecommercial name for Iron Chromium Oxide (FeCr2O4); the oxide mineral containschromium and belongs to the spinel group. Magnesium can be substituted for ironin variable amounts as it forms a solid solution with Magnesio chromite (MgCr2O4).

Turkey has a 2.4 per cent share in global chromite mining and holds 25 million MTof reserves. Turkish chromite reserves are located in the Guleman district of Elazig,the Kopdag district of Erzincan, the Fethiye district of Koycegiz, Mugla, Eskisehir, andthe Pozanti district of Adana, Harmancik, the Orhaneli district of Bursa, and thePinarbaşı district of Kayseri.

Exhibit 16: Chromite Ore Deposits in Turkey


Mineral Name Chromite Ore

Symbol Cr

Appearance Silver-Grey

Crystal structure Isometric


17


GLOBAL DEPOSIT OF CHROMITE ORE RESERVE:

Global resource base of chromite is estimated at over 9.41 BillionMT, of which, 74.4 per cent is located in South Africa. The continentof Africa holds 85 per cent of the global chromite reserves. The USAand European countries import chromium ore from South Africaand Zimbabwe to manufacture value-added chromium chemicals,chromium ferroalloys, chromium metal, and stainless steel.

KEY APPLICATIONS:

The demand for chromite is mainly driven by the expansion of stainless steel industries.

CHROMITE ORE - GLOBAL MARKET SCENARIO:

In line with the prevailing weak sentiments in global financial markets, the global chromite ore production in 2012 declined marginally to reach 24.7 million MT. The global chrome ore production is expected to reach 28.8 million MTby 2017, driven by development of new chromite ore projects, which are in advanced stages of completion in countriessuch as South Africa, Turkey, Zimbabwe, and Albania

Exhibit 18: Global Chromite Ore Market Scenario

0.0

5.0

10.0

15.0

20.0

25.0

30.0

2008 2009 2010 2011 2012 2013

24.4

18.9

24.2 25.0 25.6 26.0

Ferrochrome94.6%

Refractory0.6%

Chemical2.2%

Foundry Sands2.6%

Chromite Ore Production by End-use Application, Global, 2013

26.0 Million MT

Pro

du

cti

on

(M

illi

on

MT

)

Year

Chromite Ore Production, Global, 2008–2013

Country Total Reserve(Million MT)

Reserve(%)

South Africa 7,000 74.4

Zimbabwe 950 10.1

Kazakhstan 400 4.3

Turkey 220 2.3

Finland 120 1.3

India 55 0.6

Others 665 7.0

Total 9,410 100.0

Exhibit 17: Global Chromite Ore Mineral Reserve




18


CHROMITE ORE - TURKISH MARKET SCENARIO:

In 2013, Turkey exported 2.2MT of chromite ore which ranked second amonth chromite exporting countries; Chinawas the largest importer of Turkish chromite ore, followed by Sweden and Russia.

Exhibit 19: Chromite Ore-Turkish Market Scenario

GOLD:

Gold has a long and fascinating history of use in diverse industries and applications.In each of the applications it is used, gold provides outstanding performance due toits unique technical properties. The global demand for gold is centred on four primarycategories: jewellery, investment, central bank reserves, and technology. Gold is alsoa material of choice in medicine and dentistry due to its biocompatibility. In recentyears, it has emerged as a key nanomaterial.

As of 2013, Turkey’s defined gold reserves were 710 MT, while geological estimatesshow that the country has potential of up to 6,500 MT. Most of the reserves arefound in Erzincan, Gumushane, Usak, and Izmir.


0.0

1.0

2.0

3.0

2008 2009 2010 2011 2012 2013

2.0 2.1 2.3 2.52.4

2.8

Year

Pro

du

cti

on

(Millio

n M

T)

Chromite Ore Production, Turkey, 2008–2013

1.8 1.7

2.3 2.2 2.12.2

0.00

0.50

1.00

1.50

2.00

2.50

2008 2009 2010 2011 2012 2013

Year E

xp

ort

(M

illio

n M

T)

Chromite Ore Exports, Turkey, 2008–2013

Mineral Name Chromite

Symbol Au

Appearance Yellow

Crystal structure Isometric


19


Exhibit 20: Gold Deposits in Turkey

GLOBAL DEPOSIT OF GOLD RESERVE:

Gold is mined in about 90 countries worldwide, with Australia,South Africa, Russia, and Chile together possessing 43 per cent ofglobal reserves. Turkey, currently, has five operating gold mines: theBergama-Ovacik Gold Mine (operated by Koza Gold), theGümüşhane-Mastra Gold Mine (Koza Gold), Uşak-Kişladag GoldMine (Eldorado Gold Corporation), the Erzincan Çöpler Gold Mine(Alacer Gold), and the Efemcukuru Gold Mine (Eldorado Gold Cor-poration), with several other projects in development.

KEY APPLICATIONS:

The jewellery and investment sector drive the demand for the goldmarket.


Country Reserve (MT) Reserve (%)

Australia 7,400 14.3

South Africa 6,000 11.6

Russia 5,000 9.6

Chile 3,900 7.5

United States 3,000 5.8

Indonesia 3,000 5.8

Brazil 2,600 5.0

Turkey 710 1.4

Others 20,210 39.0

Total 51,820 100.0

Exhibit 21: Global Gold Mineral Reserve



20


GOLD - GLOBAL MARKET SCENARIO:

Global gold production amounted to 2,982 MT in 2013, and was in line with 2012 totals (2,848 MT). Currently, 90 countries mine the precious metal and the top 20 nations produce more than 75 per cent of the global requirement.

Exhibit 22: Global Gold Market Scenario

GOLD - TURKISH MARKET SCENARIO:

The country ranks as the fifth largest consumer and the second largest producer of gold, globally. Turkey’s gold production increased to 33.50 MT in 2013 from 1.4 MT in 2002.

Exhibit 23: Gold-Turkish Market Scenario



4,405.50 Metric Tons

0300600900

1,200

1,500

1,800

2,100

2,400

2,700

3,000

2008 2009 2010 2011 2012 2013

2,4092,584 2,709 2,836 2,848 2,982

Pro

du

cti

on

(M

T)

Year

Jewellery43.3%

Technology9.7%

Investment34.8%

Central Bank Net Purchases

12.1%

2, 982 MT

Gold Production, Global, 2008–2013 Gold Production by End-use Application,

Global, 2013

0.00

10.00

20.00

30.00

40.00

2008 2009 2010 2011 2012 2013

11.00 14.50 17.00

25.00 29.5033.50

Gold Mine Production, Turkey, 2008–2013

Pro

du

cti

on

(M

T)

Year

0

100

200

300

2008 2009 2010 2011 20122013

142 165

5630

253

72

Gold Exports, Turkey, 2008–2013

Year

Ex

po

rt (

MT

)


21


CONCLUSION:

Turkey, with its large mineral resource, is keen on expanding its mining industry, with the Government focussing on allkey segments to attract investments from private sectors. The Government is providing necessary and uninterruptedpower supply to the industries, which plays a vital role in the mining sector. Tax benefits and incentives provided to theinvestors by the Government clearly show its interest in increasing privatisation and FDI in the mining sector. Factorslike rapid urbanisation, increasing population, and the country’s location acting as a hub to major markets like the MiddleEast, Asia, Africa, and Europe are considered the driving forces for the mining sector of Turkey.

The only setback for Turkey being the technology used in the industries and the development in the production ofdownstream products, whereas in the other side the expectations of the end user industries’ growing every day. Turkeyhas to come up with developments in the R&D department to help the industries in bringing latest trends and technologyinto the production and to look for business expansion and growth by focusing on the production of processed mineral,which will help the industries of Turkey to compete in the global market and to achieve the vision 2023.

Exhibit 24: Turkey -Mining Industry Goals for Vision, 2023

$20 billion export of mining

5.5 million MT production and $2.50 Billion export of boron

Meeting demand for coking coal by domestic production

Annual 5 million square meter drilling for mining (from 1 million square meter)

70% of geothermal potential proved to transfer to investors


AucklandBahrainBangkokBeijingBengaluruBogotáBuenos AiresCape TownChennaiColomboDelhi/NCRDetroit

Frost & Sullivan, the Growth Partnership Company, works in collaboration with clients to leverage visionaryinnovation that addresses the global challenges and related growth opportunities that will make orbreaktoday’s market participants. For more than 50 years, we have been developing growth strategies for theGlobal 1000, emerging businesses, the public sector and the investment community. Is your organizationprepared for the next profound wave of industry convergence, disruptive technologies, increasingcompetitiveintensity, Mega Trends, breakthrough best practices, changing customer dynamics and emerging economies?

For information regarding permission, write to:Frost & Sullivan LLC#210, EIB - 4, BT Building, Dubai Internet CityPO Box: 502395, Dubai, U.A.E.

MumbaiMoscowOxfordParisPuneRockville CentreSan AntonioSão PauloSeoulShanghaiShenzhenSilicon Valley

SingaporeSophia AntipolisSydneyTaipeiTel AvivTokyoTorontoWarsawWashington, DC

DubaiFrankfurtIskander Malaysia/Johor BahruIstanbulJakartaKolkataKuala LumpurLondonManhattanMexico CityMiamiMilan

22

Frost & Sullivan's Global Metals & Minerals Consulting Services: Mining Opportunities in Turkey -...

Business

Transcript of Frost & Sullivan's Global Metals & Minerals Consulting Services: Mining Opportunities in Turkey -...