Turkiye’s mining sector aims to increase its export rate in 2024

TMD Chairman of the Board of Directors, Ali Emiroglu, stated that mining directly contributes to the economy with its exports to approximately 200 countries and said, “Turkiye should increase the share of the mining sector in exports to 5% in the medium term.”

Within the scope of the sector evaluation for the 2022-2023 period, Emiroglu told the AA correspondent that the mining sector realized mineral exports of $5 billion 241 million, including $1 billion 784 million of natural stone, in the 11-month period of 2023.

Emphasizing that the 2023 target of the mining industry, which closed last year with an export of $6.5 billion, is to increase mineral exports by 20%, Emiroglu stated that at this point, the slowdown in the global economy and export markets has negatively affected this target.

Emiroglu pointed out that mines are the most important component of Turkiye’s industrial production and related general exports and said, “The share of mining in total exports is around 2% to 2.5%. We do not consider this level sufficient for such an important sector. Turkiye should increase the share of the mining sector in exports to 5% in the medium term.”

Emiroglu pointed out that in addition to the problems in the global economy and geopolitical developments, the problems arising from the cost increases of the sector and the negativities experienced in the license and permit processes were also effective in this decline in exports, he continued as follows:

“Of course, we do not have the chance to intervene in global issues. However, there are steps we can take to increase mineral production in our country. We can only grow production and exports through investment. However, we also need to produce solutions that will improve the investment environment. If we can achieve this, we can increase our investment, production and exports.”

“The sector is entering 2024 with hope”

Emiroglu emphasized that the Medium Term Program and the 12th Development Plan are the leading positive developments in 2023 for the mining sector, and said: “We saw that in this plan and program, the public interest of mining will be highlighted, license assurance will be provided, mining will be connected to a single authority and our problems with access to finance will be eliminated. The sector has started to receive the value it deserves.”

Recalling the $10 billion export target set by the 12th Development Plan for the sector in 2028, Emiroglu said, “If the necessary steps are taken by the public authority and the investment environment is improved, no one should have any doubt that we will reach this target very easily.”

Emiroglu reminded that the rare earth element mining field in the Beylikova district of Eskisehir, which ranks second in the world with 694 million tons of rare earth element reserves, was put into operation on the 100th anniversary of the Republic, and said:

“This is, of course, a very pleasing and important discovery for our country. Critical minerals such as rare earth elements are now used by countries as a political tool, a military weapon or a deterrent force. Therefore, Turkiye’s 694 million tons of rare earth element resources stand out as an important resource in the region, especially Europe.”

Emiroglu underlined that the production of rare earth elements would benefit Turkiye, especially since they are the main input for some advanced technologies such as the defense industry, and said that the minerals in question are mandatory for the country’s strategic goals.

Emiroglu stated that rare earth elements provide an important domestic resource for Togg, Turkiye’s first mass-produced domestic and national automobile. “Even if our country gets just a 1% share of the $7 trillion market with the domestic vehicle it will produce using its own resources, it will contribute over $70 billion annually to our country.”

Emiroglu stated that the industry is entering 2024 with great hopes and said:

“We hope that in the new year, the hot conflicts in our nearby geographies will end and things will get back on track in the global economy. If there is general peace and stability in the world, the Turkish economy will react very quickly to this. In this case, we, as the mining industry, can set higher and more attainable targets.”

Source: AA / Prepared by Irem Yildiz

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