Graphite in Turkey

GRAPHITE IN TURKEY AND ITS POSITION IN

EUROPE

Sait UYSAL, Spil Mining Ltd.

www.saituysal.com.tr

March 2012

Graphite At a Glance

The mineral graphite is one of the allotropes, and pure form of carbon.

Allotropes of carbon are;

- Graphite

- Diamond

- Coal

Graphite is;

- Excellent HEAT conductor

- Excellent ELECTRICITY conductor

- Heat resistant

- Corrosion resistant

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GRAPHITE TYPES

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Applications by Graphite Type Type of Graphite Application

Synthetic Graphite Friction Materials, Energy Materials, Powder Metallurgy,

Electrical Components, Carbon Brushes and Parts, Thread

Compounds, Drilling Mud Additives, Rubber and Polymer

Composites, Packings & Seals.

Natural Graphite

Amorphous Grap. Lubricant Additives, Friction Materials, Pencils, Refractories,

Paints, Rubber and Polymer Composites, Metal Covers, Thread

Compounds, Drilling Mud Additives.

Flake Graphite Friction Materials, Energy Materials, Powder Metallurgy,

Electrical Components, Carbon Brushes and Parts, Insulation,

Thread Compounds, Drilling Mud Additives, Packings & Seals.

Vein Graphite Energy Materials, Lubricants, Grinding Wheels, Powder

Metallurgy, Electrical Components, Friction Materials, Plastics,

Carbon Brushes and Parts

Source : Mackie Research Capital

March 2012


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New Graphite’s Applications

Lithium-ion batteries

Fuel cells

Nuclear technology

Plastics and composite frames (Boeing Co.'s new Dreamliner)

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March 2012

www.saituysal.com.tr Saurce: Byron Capital Market

Graphite in Turkey

Majority of the graphite occurrences in Turkey is mainly “amorphous” type.

A graphite occurrence around Balikesir city (West part of Turkey) has bigger crystalline

structure. Most promising, most graphitized and high Carbon contented graphite

mineralization explored in Balikesir, Yozgat, Konya, Kastamonu and Adıyaman cities.

Occurrences in other places like Kutahya, Mugla, Bandirma is mostly semi graphite.

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Reserves in Turkey

Place/City

Reserve

Quantity

(Tonnes)

Average

C%

Yozgat > 100 000 45

Kastamonu Unknown 60

Aydin 150 000 10

İzmir - Tire – Karamersin 150 000 8

İzmir - Tire – Çeşme 200 000 6

İzmir - Tire – Başköy 150 000 10

Istanbul 150 000 30

Mersin 500 000 35

Adiyaman Unknown 45

Mugla 510 000 40-70

Kutahya-Oysu 130 000 20

Source : MTA reports

(MTA = General Directorate of Minerals Research and

Exploration)

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Graphite Mineralizations Map of Turkey

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Production in Turkey 1985-1999

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Year Production (tonnes)

Consumption (tonnes)

1985 - 4.100,00

1986 3.586,00 4.000,00

1987 8.900,00 3.400,00

1988 12.911,00 13.000,00

1989 11.000,00 12.000,00

1990 18.712,00 18.712,00

1991 26.763,00 26.763,00

1994 5.000,00 25.000*

1995 5.000,00 25.000*

1996 5.000,00 25.000*

1997 5.000,00 25.000*

1998 5.000,00 25.000*

1999 5.000,00 25.000*

Source: Turkey State Planning Institute, 8th Quinquennially

Development Plan, 2001

* = Rounded roughly

0,00

5.000,00

10.000,00

15.000,00

20.000,00

25.000,00

30.000,00

19

85

19

86

19

87

19

88

19

89

1990

19

91

19

94

19

95

19

96

19

97

1998

Production (tonnes) -

Production(tonnes) -

Production in Turkey 2003-2009

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Year

Production (tonnes)

2003 0,00

2004 28,00

2005 0,00

2006 0,00

2007 0,00

2008 3.236,00

2009 2.400,00

Source: http://www.migem.gov.tr/links/istatistikler/2003_2009_URETIM_%20BILGILERI.mht

Migem = Turkish Republic Ministry of Energy and Natural Resources - General Directorate of Mining Affairs

0,00

500,00

1.000,00

1.500,00

2.000,00

2.500,00

3.000,00

3.500,00

Production (tonnes)

Production(tonnes)

Producers in Turkey

- Bilginer Mining Ltd

- Mine in Mugla city

- Underground mine.

- After 1992 they were the only graphite producers in Turkey. Annual Production was

5,000 mt.

- Production stop after 2001

Karabacak Mining LTD (Now Oysu Graphite).

- Mine in Kutahya City

- Underground and Open Pit mine

- Installed a flotation plant in 1992

- In 1992 graphite market was collapsed and they stop production.

- Occasionally try to run the facility after 2007

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Turkey Import of Graphite

Year Trade Flow Reporter Partner

HS Code

(Natural

Graphite

Trade Value NetWeight (tonnes)

2000 Import Turkey World 2504 $2.467.855,00 6.087,66











Source : United Nations Commodity Trade Statistics Database

(http://comtrade.un.org/db/dqBasicQueryResults.aspx?cc=2504&px=HS&r=792&y=2000.2001.2002.2003.2004.2005.2006

.2007.2008.2009.2010&p=0&rg=1&so=9999)

Source: Turkish Statistical Institute

(http://www.tuik.gov.tr/disticaretapp/disticaret_ing.zul?param1=25&param2=0&sitcrev=0&isicrev=0&sayac=5902)

March 2012


Turkey Export of Graphite

Year Trade Flow Reporter Partner

HS Code

(Natural

Graphite

Trade Value NetWeight (tonnes)

2000 Export Turkey World 2504 $9.171,00 20,87











Source : United Nations Commodity Trade Statistics Database

(http://comtrade.un.org/db/dqBasicQueryResults.aspx?cc=2504&px=HS&r=792&y=2000.2001.2002.2003.2004.2005.2006.200

7.2008.2009.2010&p=0&rg=1&so=9999)

Source : Turkish Statistical Institute

(http://www.tuik.gov.tr/disticaretapp/disticaret_ing.zul?param1=25&param2=0&sitcrev=0&isicrev=0&sayac=5902)

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EUROPE

- EU is up to 95% dependent on imports, mainly from China

- recycling is very limited

- EU determined graphite as one of the critical raw material

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Main Production

Countries Main EU Import

Sources Import Dependence

(2006)

Graphite

2008: China 72% India 13% Brazil 7%

2007: China 75% Brazil 8%

Madagascar 3% Canada 3%

95%

Source : European Union Report of the Ad-hoc Working Group on defining critical raw materials

Critical raw materials at EU level

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Europe Export of Natural Graphite

Period Trade Flow Reporter Partner Trade Value NetWeight

(tonnes)

2007 Export EU-27 World $11,355,239 5,104.84

2008 Export EU-27 World $11,088,802 4,414.25

2009 Export EU-27 World $8,112,888 4,732.48

2010 Export EU-27 World $9,515,029 4,440.32

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Europe Import of Natural Graphite

Period Trade Flow Reporter Partner Trade Value NetWeight

(tonnes)

2007 Import EU-27 World $70,385,114 122,663.50

2008 Import EU-27 World $102,595,611 158,653.82

2009 Import EU-27 World $47,715,833 55,339.15

2010 Import EU-27 World $87,186,397 103,187.26

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Period Trade Flow Reporter Partner Code Trade Value NetWeight

(tonnes)

2007 Import Germany World 2504 $25,577,000 54,629.43




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Conclusions

Turkey has undiscovered, undeveloped graphite potential

Some of the graphite potential areas is promising

New applications also create new graphite demand (extra 500,000 mt by 2020)

Europe depend on Import for graphite, very limited graphite potential in Europe, and graphite

along with REE and PGM was declared as critical raw material for EU.

China is the main supplier of Europe (75%) and China has now implemented a 20% export

duty on graphite, along with a 17% VAT and an export licensing system, and this creates

supply risks. Europe has to develop new alternative suppliers

Because of its position and closeness to Europe, low operating costs, and promising

potentials of undeveloped graphite reserves, Turkey could be an alternative supplier for

Europe

March 2012


Thank You!

Sait UYSAL

Manisa/TURKEY


March 2012


Business

Graphite in Turkey