October 2014 | Vol 4 | Number 7 | www.miningturkeymag.com

Mining & Earth Sciences Magazine

by

ISSN: 2146-9423

CEO of Atlas CopcoRonnie Leten Visited Turkey

What Happened in Soma?

Turkey Mining Report 2014 - By GBR

October 2014 1

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FROM THE EDITORTURKISH MINING SECTOR NEWSMINE OPERATIONS MANAGEMENT SYSTEM (MOMS), REVOLUTIONISE THE MINING INDUSTRY - Afrasia MiningATLAS COPCO’S CEO RONNIE LETEN VISITED TURKEY - Atlas CopcoGLOBAL BEST PRACTICES IN CYANIDE MANAGEMENT: THE INTERNATIONAL CYANIDE MANAGEMENT CODE (ICMC) AND TURKISH EXPERIENCE - Prof. Ata Akcil, Glenn MillsSAFETY FIRST: COMPLIANCE OR CULTURE - Mustafa KahramanWHAT DOES THE NEW MINING LAW CHANGE?Şebnem Önder, Göknil Emdi

THE ROLE OF ‘PROCESS MINERALOGY’ IN IMPROVING THE PROCESS PERFORMANCE OF COMPLEX SULPHIDE ORES Professor Dee Bradshaw

TYRE MANAGEMENT - A MAJOR ASPECT OF UNDERGROUND MECHANISED MINING OPERATIONS - Alan M. CleggPOTENTIAL OF PORPHYRY CU MINERALIZATION IN CENTRAL ANATOLIA - İlkay KuşcuWHAT HAPPENED IN SOMA? - Mining Turkey MagazineTURKEY’S MINING INDUSTRY REPORT - Global Business Reports

Cover Photo

Atlas Copco CEO Ronnie Leten visited Turkey in early October and closely reviewed the developments in Turkey market, which they deem important.

Mining Turkey team was also invited to a special press conference during his visit. You can find the interview with Ronnie Leten on page 18.

October 201

4 | Vol 3 | Nu

mber 7 | ww

w.miningtu

rkeymag.com

Mining & Ea

rth Sciences

Magazine

by

ISSN: 2146-

9423

CEO of Atlas Cop

co

Ronnie Leten V

isited Turkey

What Happene

d in Soma?

Turkey Mining

Report 2014 -

By GBR

October 20142

Soma disaster hit close to the heart. 301 miners died because of this terrible calamity. The incident took its place in the country’s history for being the worst-ever mining disaster of Turkey and it revealed how unprepared Turkey is to such emergencies and how it terribly fails to meet global work safety standards. A detailed summary of the disaster is compiled under “What happened in Soma”, free of criticism or discussion.

Since the disaster in May, Turkey has been especially working on workplace safety. The terms of the latest omnibus bill resulted in cessation of operation in many small and medium scale enterprises around Zonguldak, a region known for extracting the highest quality hard coal. As the underground mine fire is still burning, Soma investigation expert reports could not be concluded, however, we can say that efforts toward more severe sanctions and higher standards have been intensely continuing.

Authorities, especially the Ministry of Energy and Natural Resources is focused on specifying proper work safety regulations with the help of experiences acquired from mine tours abroad and suggestions of foreign experts invited. International standards and technological advances have been presented to the Ministry at workshops, in which Güner Gürtunca, a former executive at NIOSH in USA and a mining engineer who had worked in Soma basin, was also present. It should be noted that facilities must be kept able to continue their productions whithout compromising the safety standards. In this context, we, as Mining Turkey, decided to organize a seminar on New Mining Technologies and Maximizing Benefits by inviting one of our writers; Mustafa Kahraman, from University of Arizona and MISOM Technologies, to Turkey. We believe that this seminar, scheduled for October at Hacettepe University, will provide important contributions to the sector.

Preparatory periods of new EIA regulations and Mine Waste regulations are going through a similar course. According to the new EIA regulations, marble and natural stone miners will be processed the same as other mining facilities. Another change planned is to include prospecting activites in the same context of oil, natural gas and geothermal search. To consider these two fields that have different circumstances and conditions in the same context will bring extra workload to mineral prospecting that is already in decline due to the Ministry Circular; making it more challenging.

Some important changes are planned for Mine Waste Regulations, as well. In the Mine Waste Regulation draft, mine wastes are exempted from special waste status by adaptations from and with references to current Hazardous Waste Control Regulations and Regulations on Systematic Waste Storage, and it contradicts with 2008 “Regulations on General Principles on Waste Management”, which conformed to EU acquis. This will cause juridical conflicts and result in public perception of mine wastes to be hazardous wastes.

In our country, when applied and future legislations are being prepared, European Union Directives are taken into account. However, as we pointed out above, some of the bills in the preparatory period contain conflicts with EU Directives. In such conditions, hearing the representatives of the sector and involving the sector in preparation of new bills and regulations is of utmost importance for the future of the industry and to assure that the regulations are enforceable.

Production in our country persists despite lower metal prices and closed down facilities. However, Gold Miners Association have announced that the numbers are expected to be below production targets for 2014. All these make up a base for the notion that finding projects that will lead to production will become a challenge in the following years in our country, where especially prospecting is already struggling.

Editorwww.miningturkeymag.com

New regulations and new safety standardsO. Çağım Tuğ | cagim@miningturkeymag.com

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October 20144

Newswww.miningturkeymag.com

The Decline in Mining Exports Continues in AugustThe mining exports in August this year was down %4.27 with 382.9 billion dollars compared to the values of the same period of last year. With the total of 3 billion 160 million dollars, the sector’s export in the first eight months of 2014 was also down 5.63% compared to the same period of last year.Alongside the unrest in Iraq and the crisis between Russia and Ukraine, the decrease in China’s demand is also signed as the cause of this decline. Though the export to the US and the

UN countries rose, the down in China, Iraq and Russia was irrepressible.The total mining export to China in the first eight months of 2014 decreased from 1 billion 659 million to 1 billion 258 million dollars with a down of 24.14%. Turkey’s largest export market Iraq experienced a down by 5.98%. The export to Russia also declined to 14.94%.Besides these declines, the exports to India, The US, Spain and Holland rose by 73.87%, 11.81%, 44.31% and 44.22% in order.While natural stone exports in August

declined 8.59% with 163.8 million dollar compared to the same period of last year, the total export in the first eight months increased 0.62% with 1 billion 450 million dollar compared to the first eight months of 2013.Despite the significant decrease in major markets like China, Iraq and Russia, the increase in the US and India markets prevented the mining sector from a big loss.

September 2014

Turkey Builds a Remote Sensing Laboratory in AzerbaijanThe National Geological Exploration Service of the Ministry of Ecology and Natural Resources of Azerbaijan Republic (MGKX) presented MTA (General Directorate of Mineral Research and Exploration) a written application in September, 2013. Following this application, the Ministry of Energy and Natural Sources of Turkey

launched a joint programme with Azerbaijan to build a remote sensing laboratory in their country. The Minister of Energy and Natural Resources Taner Yıldız stated that, “Turkey - Azerbaijan Geological Remote Sensing and Technical Cooperation Protocol” is signed in February, 2014 on demand of Azerbaijan.

The acquisition and analysis of information on natural and artificial surfaces using satellite platform is planned to be carried out on an iron ore deposit in Azerbaijan. A satellite image on a specific field will be analysed, and the studies will be carried out by MTA specialists.

April 2014

Koza and Lonmin will Explore Minerals in IrelandKoza Gold Corporation’s London associate Koza Ltd. and South African Lonmin Plc.’s associate Lonmin Ltd. (Northern Ireland) signed a memorandum of understanding in May. According to the memorandum, Koza and Lonmin will operate gold

and silver mineral explorations in Northern Ireland.Koza Gold Corporation had announced earlier that due to the limitations and some practices in Turkish mining sector and within the scope of their long term targets,

they would focus on the foreign-based opportunities especially on the countries with established mining regulations. Thus, the company founded England based Koza Ltd. in January 28, 2014.

May 2014

Foundation Laid for the New Thermal Power Plant in SomaFoundation laid on March 19, 2014 for the new 510MW coal-based thermal power plant in Soma district of Manisa province. The Minister of Energy and Natural Resources Taner Yıldız participated in the cutting ceremony of this second thermal power plant of the region. Kolin Construction won tender for the main contractor in exchange for 153 million tonnes of coal production

last year. The period of contract was 30 years. The 510MW coal-based power plant project would be performed through Build-Operate-Transfer Model. The studies on determining the location of the plant, preparing of the project, and preparation of EIA report were completed. After the coal fields, which would feed the thermal power plant started production, and the

construction of the plant completed, the project would offer the district a range of employment area for directly 3,500 and indirectly 6,000 people. The authorities declared in their public statement that the new thermal power plant will be constructed with the newest technology approved and applied worldwide.

March 2014

October 2014 5

Gold Producers Paid Taxes Equivalent to 7 Tonnes of GoldMuhterem Köse, General Coordinator of Gold Miners’ Association joined PDAC 2014 in Toronto and in his statement to Anadolu Agency he noted that the gold producers paid taxes equivalent to 7 tonnes of gold this year and added, “Owing to this production, we earned an improvement both socially and economically. More than 30 thousand mine investors from 130 countries meet at Toronto each year. Investment projects that are worth 750 billion USD are on the table… We should ask ourselves,”Where does Turkey place itself in it?” Each year 40 billion dollars of new mine investments are made in the world.”

Köse stated that Turkey was still taking baby steps in mine explorations and added that the mine exploration drillings Turkey had made in the last 75 years was equal to Canada’s just 1.5 years of work. In his statement:

“Mining is a long term investment, which needs 10 to 15 years in return. Stability is the key to success for this long period. Otherwise, it is futile to expect for an investor to invest hundred millions of dollars for 15 years of future. Mining production in Turkey is inadequate. Our total mineral export cannot even afford the coal import. Turkey imported 302 tonnes of gold last year, and paid 13.7 billion dollars in

return. Whereas our gold production was 33.5 tonnes last year which meant 1.6 billion dollars. In the last 20 years, 2.5 billion dollars of investment was made in gold sector in Turkey, which made us the top country in Europe in gold production. This investment also offered an employment area for 6 thousand 200 people. This year, we have paid taxes equivalent to 7 tonnes of gold to the government. Owing to this production, we earned an improvement both socially and economically. The only way to narrow the current account deficit is to explore and extract our own mine. This is the best model for us.”

March 2014

Çayeli Bakır İşletmeleri Doubled Production Rates in 20 YearsFirst Quantum Minerals’ Turkish subsidiary Çayeli Bakır İşletmeleri, providing the 1/3 of the total copper production of Turkey, has doubled its production capacity which was 600,000 tonnes when founded. According to the company’s statement to Mining Turkey, since its foundation Çayeli Copper has contributed significantly to the country’s economy, and the total ore it has extracted up-to-date is 17,367,000 tonnes. While the company’s total copper concentrate is 159,513.5 tonnes, the total zinc concentrate is 88,341.3 tonnes annually. The company’s annual ore production capacity is 1.3 million tonnes today.

At the company’s event organised for the employees at Dedeman Hotel, Rize on March 7, the company gave the news of a female director appointed to the head of a technical department, which is a first in the company’s history. Proudly announcing the promotion of Maintenance Deputy Manager Gönül Uğultan to the position of Maintenance Manager, Çayeli Bakır İşletmeleri General Manager Iain Anderson said “Mining, which is dominated by employment of men, has now become a sector, which women can also work in”. Managing Director Iain Anderson emphasized

the importance of loyalty to corporate values, production and continuity of work in his speech at the event held on March 7. He said “The important thing is how rather than how much you produce to gain reputation. While providing benefits for our sector and our economy, producing in a safe and environmental friendly manner with respect for the society is our biggest priority as Çayeli Bakır. Thus, we survive and thrive by producing together. I thank all Çayeli Bakır employees, who have contributed to this development and their families”.

March 2014

Magnesit AŞ Buys an Enterprise of Cihan Group in ErzurumAustrian-based RHI’s subsidiary Magnesit AŞ. signed a contract with Cihan Group and purchased Group’s raw material production facility in Erzurum and its mining rights. RHI, the Austrian company specializing in producing heat-resistant refractory products, bought the raw material

facility and it’s mining rights for 30 million USD. RHI will also become liable for Cihan Group’s debts to 16 million USD considering the quality and the specialty of the raw material. The sale will be declared valid as soon as the terms of the contract are fulfilled.

The formal process is still ongoing and the facility located in Aşkale district of Erzurum has a reserve capacity of 85 million tonnes with a production capacity of 120 million tonnes. The purchase value of the facility is said to be 26 million euros.

April 2014

October 20146

In 2013, Eldorado Produced 397,000 Ounces of Gold in TurkeyIn 2013, Eldorado Gold produced 397,000 ounces of gold in Kışladağ and Efemçukuru mines in Turkey. As to the company’s statement, 2013

production of Kışladağ increased by 6% compared to 2012. While the production costs remain pretty much the same, the company esti-

mates 10% rise in their production for 2014.

March 2014

Coal Explorations in Turkey Proceed in 2014Turkey, targeting to increase the utilisation of national sources in energy, aims to enhance its coal reserves through the new explorations in 4 regions. MTA will provide 25,197 million liras to fund the explorations in 4 regions and 18 provinces. The total exploration network including the operations in Amasya, Çorum, Konya, Isparta, Afyonkarahisar, Ankara, and Muş will cost 10,565 million liras.Turkey owns 1.3 billion tonnes of hard coal and 13.9 billion tonnes of lignite reserves, of which 512 million tonnes and 13.4 billion tonnes, respectively, are proved reserves. The research project “The Improvement of Lignite Reserves

and Prospects to Uncover New Lignite Fields” was carried out in 2005-2102 by Turkish Coal Enterprises (TKİ) as the coordinator, General Directorate of Mineral Research and Exploration (MTA) as in charge and ETI Mine Works, Turkish Petroleum Corporation (TPAO), Electricity Generation Company (EÜAŞ), Turkish Hard Coal Enterprises (TTK), General Directorate of State Hydraulic Works (DSİ) as the contributors. The project leaded to a significant improvement in the reserves, thus helped the lignite reserves rise from 8.3 billion tonnes to13.9 billion tonnes in 2013. The Minister of Energy and Natural Resources Taner Yıldız said in his

statement that 11 new coal fields had been explored with 1.2 million metres of drilling in the past 8 years. According to Yıldız, these newly found fields added up 6.8 billion tonnes to the lignite reserves which meant a 82% increase in Turkey’s lignite reserves. “The studies about the conversion of lignite coal into electricity is in progress and we are planning to provide 1/3 of our electricity out of coal in 2023. With our total national coals converting into thermal power plants, we are aiming to reduce minimum 12 billion USD annually from our natural gas import” added the Minister.

March 2014

New Privatizations UnderwayHigh Board of Privatization has made new decisions regarding the new privatizations and they are published in the Official Journal. According to new ruling, Orhaneli Thermal Power Plant of Elektrik Üretim A.Ş. (EÜAŞ) is listed in privatization program and immovable properties of the plant are decided to be included in the scope and program of privatization.

High Board of Privatization also concluded to include Soma Elektrik Üretim ve Ticaret A.Ş. (SEAŞ) except its immovable properties, Tunçbilek Thermal Plant of EÜAŞ, Bursa Linyitleri Işletmesi (BLİ) of Turkish Coal Enterprises (TKİ) with their immovable properties into the scope and program of privatization.Board ruled that the certificate No. 79528 of TKİ and certificate No. 73012

of EÜAŞ and the mine fields are included in the scope and program of privatization.On the other hand, the Board demanded Soma A Thermal Power Plant to be excluded from privatization program and decided that privatizations of other plants and enterprises to be concluded by December 31, 2016.

August 2014

Taner Yıldız, Called for Investments on MarbleTurkey Marble, Natural Stone and Machinery Manufacturers Association (TUMMER) Board of Directors were guests at a meeting with Ministry of Energy and Natural Resources, during which Minister Taner Yıldız called entrepreneurs to invest in marble sector. Pointing out to 30% of 13 thousand mine operating licenses being natural

stone licenses, Yıldız stated that natural stone production increased from 1.5 million cubic meters in 2002 to 5.8 million cubic meters in 2013 adding that natural stone export also increased from 700 million dollars to 2.2 billion dollars.China receives half of Turkey’s natural stone export, said the Minister and indicated that Chinese investors have

started operating in the country. Specifying marble as the main exported product constituting half of mine exports, Yıldız invited all entrepreneurs interested in mining and natural resources once again to invest in the sector.

August 2014

Sandvik drill rigs have been developed for maximal cost-efficiency for decades. Still living by the same rule in consumption, we developed a percussive drill platform that will elevate surface drilling to a whole new level. Built to meet the needs of tomorrow’s mining industry as well as future requirements for automation, the new PANTERA™ is an intelligent, forceful and safe drill with variants for both down-the-hole and top hammer drilling. Designed for enhanced drilling efficiency, lower cost per meter and reduced environmental impact, it stands for utmost productivity.

Join the movement toward The Future of Mining.It’s This Way: sandvik.com/pantera

LOW CONSUMPTION WAS YESTERDAY’S NEWS. READY FOR THE FUTURE? THIS WAY!

October 20148

Eczacıbaşı Esan Stands Out with Industrial Mineral ExportFounded in 1978 and has been providing high quality products with professional service since then, Eczacıbaşı Esan grows rapidly both in local and foreign markets. With it’s exports to more than 40 countries, Eczacıbaşı Esan’s contribution to the

country’s economy was awarded one more time by İstanbul Minerals and Metals Exporters’ Association (İMMİB). The company has been awarded two years in a row with the Association’s “2013 Stars of the Exports” 3rd prize in “industrial minerals” category on behalf

of Eczacıbaşı Ekom Foreign Trade.Founded to meet the needs of quality raw material for Eczacıbaşı’s ceramic plants, Eczacıbaşı Esan is now among the pioneering industrial mineral and metallic mine firms of Turkey.

March 2014

Turkey’s First Molybdenum Facility Made Its Official OpeningLocated in Tepeoba village in Havran district of Balıkesir province, Turkey’s first facility that produce both copper and molybdenum made its official opening by the Minister of Energy and Natural Resources Taner Yıldız on May 3, 2014. The mine which took place in our previous issues is operated by Kuzey Ege Bakır İşletmeleri, the subsidiary of Özdoğu İnşaat Ltd. who celebrates its 40th year in business.Kuzey Ege Bakır A.Ş. General Director and Vice Chairman Murat Kavak made the opening speech, underlying the remarkable role of mining and informing about the facility. In his statement, he noted that the company had the mining license for the area of 1.439 hectares, targeting to extract 17 million tonnes of copper-molybdenum.

Kavak added that with 235 people working in the facility, 40,000 tonnes of copper and 1,500 tonnes of molybdenum concentrate is being manufactured annually and ranking the first place among the mine exporters in Aegean Region, it is the first and only molybdenum manufacturer of our country. Subsequent to the studies carried out for the reserves, they were planning to put the potassium feldspar mine into use in August. Kavak said that this imported product from then on would be produced in their facility and be available for use in ceramic and porcelain industry of our country. The Minister of Energy Taner Yıldız also made a speech at the opening, “MTA has drilled 10,000 meters here and confirmed of a copper-molybdenum

reserve of 20 million tonnes. Public sector explores and the private sector operates. We import 80% of the copper we consume. New fields should be open to use in order to diminish the import. Our annual import is 1.2 billion USD. This facility will make a huge contribution to our economy. We receive complaints about the difficulties of getting mining licences due to applying to18 different institutions. We are now establishing a one step office. Our mining exports, which was 841 million USD in 2002 has now risen to 5.1 billion USD at the end of 2013. The gross domestic product rate of the mining sector was 2.6 billion USD in 2003, now it is around 12 billion USD. Our goal is to increase the export to 20 billion dollars by 2023.”

May 2014

5 Workers Lost Their Lives in Unauthorized Coal Mines in Mount Cudi in 15 Days Due to the illegal production in asphaltite mines located in Şırnak, which were functioning despite the earlier closure because of the lack of proper safety conditions, 5 workers lost their lives in 15 days (1 worker on June 4th, 3 workers on June 11th and 1 worker in June 18th). These mines in question had been shut down 6 months ago upon an order from the Turkey’s Social Security Institution, Ministry of Labour, and governorate due to lack of job security and social security conditions.

The former Chairman of Chamber of Mining Engineers Mehmet Torun stated that this asphaltite field, which was formerly owned by Turkish Coal Enterprises, was transferred to Şırnak Governorate in a royalty transfer tender. The governorate has given its operating right to a private company in a royalty transfer tender, and the company operated the mines through the subcontractors. Yet, these mines were shut down upon an order from the Ministry 6 months ago. Coal is illegally extracted in mine

shafts here today. It is really hard to prevent mining in these blind shafts. The 1,000-1,200 of unemployed young people in the locality work in these illegal mine shafts for 40-50 liras per day. No engineering rules are applied. There are no emergency gateways, no ventilation in the mines. The workers do not have any necessary equipments like safety helmets and gas masks.”

June 2014

October 2014 9

MNG Orko’s Transaction Completed with Amlib United Minerals for Its Liberian - Kokoya ProjectMNG Orko, founded in 2012 by MNG Group, whose business activities cover a diverse range of fields from construction, tourism, air carriage, and cargo carriage, to finance and energy sectors, announced the completion of the transaction with Amlib United Minerals to acquire its 90% stake (10% Liberian Government) in Liberian-Kokoya Project. Kokoya is an advanced gold exploration project owned and managed by MNG Gold through its

subsidiary MNG Gold Liberia Inc. situated in Bong County, located in Liberia. A total of 272 holes for 48,625 m have been drilled and 249 trenches for 7,069 m have been excavated to date. Serhan Umurhan, General Manager of MNG, commented: “I am delighted that the closing conditions of this transaction have now been satisfied so that we can focus our efforts on rapidly developing the potential of Kokoya, which stood still for a long

time due to lack of funds. Our aim is to create a new approach offering an employment opportunity with positive value for local communities and commencing production as soon as possible. Kokoya is the first step in the creation of MNG Gold’s asset portfolio in West Africa and Turkey; we will add further valuable assets to our portfolio in the near future.”

June 2014

Aegean Metals Group Provides Market Update on Turkish Exploration ProjectsAegean Metals Group Inc, a Canadian junior mineral exploration company operating exploration stage projects in Turkey and Chile, shares its market updates on Turkish exploration projects with its investors. The company announced that the exploration activities at Ergama Project in Western Anatolia and Hot Maden Project in Eastern Black Sea region continue to advance .The projects’ exploration activities are being managed by Teck Resources (Ergama) and Lidya Madencilik (Hot Maden).The company’s Ergama Project is located in Balıkesir province. Ergama is a high-sulphidation epithermal gold-

silver project, which was first explored by Normandy Mining in the 80s. The project is currently owned by Aegean, however, Teck Resources exercised a one-time back-in right on May 28, 2013, and is now required to invest 1,275 million USD in exploration at Ergama within 3 years in order to earn-in to a 51% interest in the property. The update covers that Teck continues its geological explorations within the contract. The operating explorations in Hot Maden Project, which is located in Artvin province, is continuing to be advanced by Lidya Madencilik through a joint venture signed in June, 2014. Lidya has the option to earn-in to a 70% interest in the Hot

Maden Project in return for a 3 million USD commitment of combined exploration expenditures and cash payments to Aegean over a 48 month option period.The site was first explored by Russian geologists working in the region before the foundation of the Republic, later on MTA and private sector has continued the operations there. Lidya’s initiating field activities in the site are focused on geological mapping for the drilling locations preparations.As a part of the joint venture agreements in both projects, Aegean reserves the right to claim product share from the operation.

August 2014

Elsan Electricity Wins Yatağan Thermal Power Plant TenderTenders regarding the privatisation of Yeniköy Yatağan Thermal Power plant and the immovable properties owned by Southern Aegean Lignite Enterprises (GELİ) were done in Ankara. Among the six companies, Elsan Electricity Industry and Trade Co. Inc. placed the highest bid of

1.091 billion USD in the tender and won the operation rights of Yatağan Thermal Power Plant. Centered in Denizli, Elsan Electricity is a member of Bereket Energy Group.The immovable properties and Yeniköy Thermal Power Plant owned by Yeniköy Yatağan Electricity Production Inc. (YEAŞ),

the movable and immovable properties used by GELİ were privatised as a whole through an “asset sale” method; related mining licenses and mining sites covered by these licenses through a “transfer of operating rights” method.

September 2014

Aldridge Minerals Annouced the Closure of 45 Million Dollars FinancingAldridge Minerals announced by a press release that they have closed the financing with Orion Fund JV Limited, an affiliate of the Orion Mine Finance funds in connection

with a US$10 million equity private placement which includes participation by the Aldridge’s two largest shareholders and a US$35 million bridge loan facility.

Aldridge has also entered into lead concentrate and gold offtake agreements with an Orion affiliate.

September 2014

October 201410

Investment Incentive Certificate Issued for Mazıdağı Phosphate PlantEti Copper Inc. received an investment incentive certificate for Mardin Mazıdağı Phosphate Plant that was shut down in 1993 due to economic crisis and that was handed over to TMC Enerji Yatırımları San. Ve Tic. A.Ş., founded in partnership with Eti Copper Inc/Park Electric with a tender in May 2011.

Planned to become operational in 2016, the plant is announced to receive an investment of 1 billion and 60 million Turkish Liras. The plant is expected to produce 437,760 tonnes/year of phosphate, 75,000 tonnes/year of ammonia, 650,000 tonnes/year of sulphuric acid,

150,000 tonnes/year of phosphoric acid, 325,000 tonnes/year of phosphorus fertilizer and 690.000 tonnes/year pyrite and iron dust. When operational, 606 jobs will be created at the plant.

July 2014

Nata Holding Purchased Çaldağ Nikel MineOwner of Çaldağ Nickel Mine, the largest nickel reserve of Turkey with 29.7 million tonnes in Turgutlu district of Manisa, Çaldağ Nikel Madencilik’s majority share was sold to Nata Holding. According to Trade Journal, the majority share of Çaldağ Madencilik, who had been the former

subsidiary of VTG Holding, was sold to Nata Construction in April, 2014.Ankara based Nata Holding is a conglomerate of companies in the businesses of project development and real estate investment, construction, international contracting services, concrete pipe and prefabricated

structures, cement and energy. Prominent in constructing sector, Nata Construction ranked 150th in the international construction magazine Engineering News Record’s 2013 Top 250 List.

June 2014

Altıntepe Mining Continues Its Operations for Production in OrduStratex International Plc, the exploration and development company focused on gold and base metals in Turkey and Africa, and its subsidiary Bahar Madencilik will manufacture dore gold in Ordu- Altıntepe with an investment of 162 million dollars. According to the news published in Dünya Gazetesi, Stratex signed a contract with a construction company in 2009 for the refinement

of Ordu-Altıntepe and Konya-İnlice projects, but the construction company declared its withdrawal from partnership in 2011. Following this, Stratex declared new partnership with Bahar Madencilik for Altıntepe, and resigned from İnlice Project.According to the February 2014 invest-ment incentive certificate statistics, Altıntepe Madencilik, founded by the partnership between Stratex and Ba-

har Madencilik, aims to produce 3,500 million tonnes of ore in a year from this investment. Out of this ore, 1,08 tonnes of dore gold and 1.24 tonnes of dore silver production is expected in a year. An employment area for 100 people is also among the marks men-tioned in the investment incentive cer-tificate of the company.

May 2014

Zenit Madencilik Obtained Financial Support for Kızıltepe ProjectZenit Madencilik, a joint venture company between Turkish Proccea Construction Co. and Anglo-Turkish mine explorer Ariana Resources, has announced getting an investment subsidy for Kızıltepe Gold-Silver mine, which is a part of Red Rabbit Project. The announcement declares that the company will benefit from the incentives in ways such as the vat exemption, zero customs duty,

government support for the employer’s national insurance contribution and credit interest. Ariana Resources’ Chairman Michael de Villers states that these supports are considered to be a sign of the government’s will for the growth and improvement of the mining sector .Zenit Madencilik also announces that it has got the full funding to bring its Kiziltepe Gold-Silver Mine into

production. 33 million USD overall credit agreement, inclusive of capital repayments and borrowing costs, completed with Türkiye Finans Katılım Bankası. 236,000 USD first drawdown completed by Zenit. Loan repayments will be paid over five years.

June 2014

October 2014 11

EIA Approved for Ağı Dağı ProjectMinistry of Environment and Urbanization has approved the Environmental Impact Analysis (EIA) for Ağı Dağı Project of Alamos Gold Inc.,

one of the important mining projects of the country. John A. McCluskey, President and CEO of Alamos, indicated it as an important step for the

company’s projects in Turkey and a sign of significance state puts on advancing the mining sector.

August 2014

5 Mining Companies are Among the Top 100 Exports Companies The top 1,000 exports companies of Turkey in 2013 were announced by Turkish Exporters’ Assembly. While the mining sector has its place in the list with 91 companies, 5 mining companies are among the top 100 exporters. Given data show that the top 1000 companies made 90 billion USD of exports, which forms 59% of the total 152 billion USD of exports in 2013. The rate of the foreign-financed companies on the list is 20%. This is declared as the highest rate of the last 5 years.The total net profit of the top 1000 exports companies of 2103 is 14.2 billion liras. The mining companies Tüprag and Eti Krom Inc. are placed among the top

100 exporters for the first time. The boom in these two companies’ export figures is remarkable. Governmental Enterprise and Eti Mine Works, the only authorised boron producer in Turkey, ranks 16th (15th in 2012) in the list with 790 million 353 thousand USD. Eti Mine Works is the 2nd company with the largest profit rate among the 1000 companies. It is also placed first among the exports companies in the mining sector.Following Eti Mine Works, the second mining company in the top 100 companies is Çayeli Bakır İşletmeleri. With an exports figure of 249 million 838 thousand USD, it ranks 42nd in the

list (38th in 2012).The third company in the list from the mining sector, Tüprag, enters the list for the first time in its history. With 189 million 277 thousand USD of exports, it ranks 63rd in the list (240th in 2012). Being the 4th company from the mining sector in the list, Eti Krom Inc. ranks 67th among the 100. Succeeds in entering the list for the first time, Eti Krom made 185 million 583 thousand USD of export in 2013. Eti Soda AŞ., which ranked 229th among the top 1000 exporters in 2012 leaps forward in 2013 with 138 million 174 thousand USD of exports, and ranks 97th.

May 2014

Park Electric’s 2014 First Half Report Announced Park Electric, operating in the mining and energy sectors, published its 1st half report. The company stated to raise a total income of 122 million lira in the first half of 2014; 109.5 million lira from the copper plant in Madenköy and remaining 11.6 million lira from the asphaltite plant in Silopi, Şırnak. Company’s income was 123.6 million lira in the same period of 2013 and it saw a 1% drop in sales compared to the first month of 2014.In the first quarter of 2014, Park Electric

has handed the Silopi asphaltite plant in Şırnak-Silopi over to Silopi Electric Inc., another unit of the conglomerate Ciner Holding, for 61 million TL and claimed to score a profit of 14.1 million TL from this transaction. The drop in income in the first half of 2014 is also attributed to not receiving the revenue from the plant following the handover.Copper sales income in the first six months of 2014 shows a 3% increase compared to the same period of previous year. Copper sales income in

the first month of 2014 is 109.5 million lira, it was 106.7 million lira in the first month of 2013.In Madenköy copper mine, 50,021 WMT of concentrate copper production in the first half of 2013 decreased to 45,618 WMT in the same period of 2014, resulting in a 9% decrease. As to the concentrate copper sales, 47,473 DMT of first six months of 2013 has dropped 10% in the first six months of 2014 and stayed at 42.634 DMT.

August 2014

New Drilling Results at TV Tower ProjectPilot Gold has announced several updates about its joint venture TV Tower Project during last 6 months. According to the latest press release, Pilot Gold has completed 13 drill holes to date at the Valley Porphyry, and has secured permits to drill test

most of the 1,400 m length of the zone. Recent drill highlights include: 0.63 g/t gold and 0.27% copper over 134.7 meters (1.10 g/t gold-equivalent (AuEq1)) in KRD016C and 0.41 g/t gold and 0.25% copper over 70.2 meters (0.83 g/t AuEq1) in

KRD018C. These latest results from step-out drilling extend copper and gold mineralization over an area of approximately 300 meters by 200 meters. Teck Resources currently holds 60% interest of the project.

June 2014

October 201412

The Top 500 Largest Industrial Organizations of 2013 were AnnouncedThe list of the top 500 industrial organisations selected annually by İstanbul Chamber of Industry was announced. According to the news, Tüpraş with 39,729 billion liras of product sales took place at the top of the list. Turkey’s 500 largest organisations increased their sales by 7.4% to 454,990 billion liras. The major companies were mainly from petrochemistry, automotive, and iron steel industry sectors. While Ford Automotive owned the 2nd rank in the list with its production sale of 9,714 billion liras, Electricity Generation Company ranked 3rd with its production sale of 9,263 billion liras. The evaluation was made considering the product sales. The mining companies and many sector related companies (cement production, concrete production, glass and ceramic industry) appeared in the list as usual. Turkish Coal Enterprises (TKİ) and Eti Mine Works placed among the top ranks. While TKİ’s net sales declined compared to 2012 (2,886,203,748 TL), Eti Maden’s net sales increased compared to 2012 (1,487,462,707 TL). The sales figures of TKİ were down 23.3% compared to 2012, and the organisation moved downward on the list from 15th (2012) to 26th (2013).While the sales figures of Eti Maden were up 9.5%, the company’s place in the list slipped one rank from 42 to 41. Though there was not a significant increase in the company’s production rate compared to last year, the increase in the sales figures was likely a result of the rise in the exchange rate of dollar.Tüprag Metal Madencilik rose 4 ranks to 63th in the 2013 list with a net sales of 1,152 billion liras. Due to these numbers, Tüprag rose 6.2% with its net sales in 2013 compared to 2012.Following Tüprag, Soda Industry Inc. ranked in the list on the 72nd place. The company moved upward 9 ranks in the list compared to last year with net sales of 1.71 billion liras (26.9% increase compared to 2012).Koza Gold Operations Inc., which had formerly ranked 72th in İSO 500 2012 list, fell to 82th in 2013. The company’s net sales figure was 981,771 million liras, with a 10.5% fall.One of the Turkey’s prominent mining companies, Eti Bakır AŞ. (Eti Copper Co.) ranked 103rd in the list with net sales of 765,428 million. Eti Alüminyum AŞ. (Eti Aluminium Co.), which was a member of Cengiz Holding like Eti Bakır AŞ. ranked 217th in the list with net sales of 409 billion liras. Esan Eczacıbaşı, Çayeli Bakır İşletmeleri, Eti Soda, Erdemir Mining, Park Termik, Soma Kömür İşletmeleri AŞ., Park Elektrik, Eti Gümüş AŞ. are also among the leading mining companies took place in the İSO 500 list. İmbat Madencilik (İmbat Mining Co.), Kümaş Manyezit, and Tilaga Madencilik are among the mining companies that had a rank in the list for the first time.According to İSO 5000 list, among the top 10 organisations with the biggest profit, there were 5 mining companies. Eti Mine Works ranked 4th in the list with 841,797 million liras. The sector based listing of the rest most profitable companies were as follows: Tüprag Metal Madencilik (669,449 million liras), Koza Gold Operations Inc., Soda

Ranking Ranking Net Sales TL

Turkish Coal Enterprises (TKİ) 26 15 2,212,592,358

Eti Mine Works General Management 42 41 1,628,735,733

Akçansa Çimento San. ve Tic. AŞ 61 75 1,164,214,836

Tüprag Metal Madencilik San. ve Tic. AŞ 63 67 1,152,515,050

Soda Industry Inc. 72 81 1,071.959,226

Koza Gold Operations Inc. 82 72 931,771,503

Çimsa Cement Industry and Trade Inc. 87 88 884,345,009

Paşabahçe Glass Industry and Trade Inc. 88 128 878,798,569

Trakya Cam Sanayii AŞ 97 105 807,951,976

Eti Copper Inc. 103 108 765,428,032

Nuh Çimento Sanayi AŞ 145 169 562,447,082

Limak Cement Group 146 155 552,823,953

Aşkale Çimento Sanayii T.AŞ. 163 168 516,837,788

Çimko Çimento ve Beton San. Tic. AŞ 171 200 497,404,726

Esan Eczacıbaşı Industrial Raw Materials 173 222 492,209,913

Çayeli Bakır İşletmeleri AŞ 181 157 474,430,373

Limak Batı Çimento San. ve Tic. AŞ 189 199 462,655,126

As Cement 202 208 426,398,497

Eti Soda Üretim Pazarlama AŞ 212 201 413,757,248

Erdemir Mining Industry and Trade Co. 216 160 410,379,738

Eti Aluminium Co. Inc. 217 - 409,020,025

Eti Krom Inc. 225 426 397,316,956

Votorantim Çimentos 227 246 395,366,644

Adana Çimento Sanayii Türk AŞ 231 284 389,622,063

Park Termik Elektrik San. ve Tic. AŞ 238 234 380,752,104

İmbat Madencilik Enerji Turizm AŞ 252 - 357,822,282

Trakya Yenişehir Cam Sanayii AŞ 254 265 350,908,372

Soma Kömür İşletmeleri AŞ 261 295 338,048,668

Nuh Beton AŞ 267 243 332,649,984

Çimentaş İzmir Çimento Fabrikası Türk AŞ 278 290 325,872,258

BATIÇİM Batı Anadolu Çimento Sanayii AŞ 281 311 323,428,914

Park Elektrik Üretim Madencilik AŞ 311 364 298,577,066

Konya Çimento Sanayii AŞ 331 346 284,470,475

Kümaş Manyezit Sanayi AŞ 333 - 281,786,710

Turkish Hardcoal Enterprises (TTK) 364 302 255,505,078

Tilaga Madencilik ve Sınai Yatırımlar AŞ 365 - 255,169,707

Ege Seramik San. ve Tic. AŞ 374 371 251,263,216

Bolu Çimento Sanayii AŞ 379 434 248,851,391

Seranit Granit Seramik San. ve Tic. AŞ 380 339 248,125,643

Eti Gümüş AŞ 381 241 247,489,170

Göltaş Göller Bölgesi Çimento AŞ 388 408 243,202,444

Adoçim Çimento Beton San. ve Tic. AŞ 408 432 231,985,268

Anadolu Cam Sanayii AŞ 425 198 220,802,620

Ünye Çimento San. ve Tic. AŞ 428 356 218,809,568

Denizli Çimento Sanayii Tic. AŞ 437 453 216,278,585

Traçim Çimento San. ve Tic. AŞ 445 427 212,060,920

Bursa Beton San. ve Tic. AŞ 458 - 205,921,893

Mardin Çimento San. ve Tic. AŞ 464 402 204,088,738

Table 1. Mining Companies and Mining Sector Related Companies in İSO 500 2013 List

October 2014 13

Ranks OrganizationProfit for the Financial

Year (TL)

1 EÜAŞ 2,569,101,706

2 TPAO 1,634,198,676

3 - -

4 EtiMaden Works 841,797,606

5 Mercedes Benz Türk AŞ 805,507,329

6 Philsa Cigarette and Tobacco Inc. 760,649,785

7 Tüprag Metal Madencilik 669,449,075

8 Koza Gold Operations Inc. 543,281,929

9 Soda Industry Inc. 523,414,008

10 Eti Copper Inc. 442,907,145

Table 2. “The 10 Most Profitable Organizations” in İSO 500 List

Number of Companies

Profit of the Financial Year (%)

Mining and Quarrying 16 32.3

Cigarette and Tobacco Manufacturing 4 28.4

Electricity, Gas, Ventilation Systems 14 14.5

Uncategorized Machinery Equipments Production

11 13.8

Other Non-metallic Products Production 40 11.8

Table 3. The 5 Sectors with the Highest Profitability Ratio (Public Corporations Included)

Number of Companies

Profit of the Financial year (%)

Mining and Quarrying 13 40.1

Cigarette and Tobacco Manufacturing 4 28.4

Uncategorized Machinery Equipments Production

11 13.8

Other Non-metallic Products Manufactur-ing

38 12.1

Furniture Manufacturing 3 11.8

Table 4. The 5 Sectors with the Highest Profitability Ratio ( Among 487 Private Corporations)

Industry, and Eti Bakır. As reported by İSO 500 list, the most profitable sectors were mining and quarrying in the profit based analysis. Considering the 16 mining and quarrying sector based companies, mining sector was followed by “Cigarette and Tobacco Manufacturing” with 28.4%, and “Electricity, Gas, Ventilation Systems” with 14.5%. Excluding the three public-owned

c o m p a n i e s (TKİ, TTK, Eti Mine Works), 13 private equities’ profits were 40.1%. This rate is five times the total top 500 companies’ profit which is 4.9%.The below-mentioned mine producers’ and 48 mining sector related companies’ (cement production,

concrete production, glass and ceramic industry) total net sales were 24 billion 432 million liras, which was equal to 5.3% of the total companies’ sales in İSO 500 list.

August 2014

Meetings Held with South Korean Firm for Huge InvestmentOfficers from a South Korean power firm has come to the region to investigate the utilization of the Afşin-Elbistan coal basin for a huge investment of 10-12 million USD to build a thermal power plant. Higher ranking executives of the power firms operating especially in the Arab world and East Asia have been frequently visiting to examine the field on site

and map out the investment plan in the light of their findings.Officers of the undisclosed South Korean firm held meetings with Afşin-Elbistan Lignite Plant Manager Ahmet Yaldız and had detailed information on the structure of the plant and lignite reserves in the region. Following the meetings with no media access, AEL Manager Ahmet Yaldız revealed some

information regarding the session and indicated that the meetings were not about privatization.Laying emphasis on the 12 billion US dollars of investment, Yaldız pointed out to the economic and social benefits of this investment in the region as new jobs will be created.

August 2014

92 Mines Closed in 201492 mines’ operations have been shut down in the January-July period of this year, due to critically unsafe conditions for employees, by Turkish Ministry of Labor and Social Security, Directorate of Labor Inspection. Labor Inspection Committee specifically focused on stone quarry and mining sectors where deadly work accidents

are more commonly occuring and systematically inspected the mines throughout Turkey.Upon determining that 92 mines were critically unsafe for employees between January-July of 2014, Labor Inspection Commitee concluded to halt the operations at these mines. Of these, 11 were operating in Edirne,

10 were in Zonguldak, 7 in Tekirdağ, 6 each in Ankara and İstanbul and 5 each in Kütahya, Kocaeli and Manisa. Said mine administrations were fined and subsequently monitored whether they protested the “closed down” ruling and they were reported accordingly.

August 2014

October 201414

Turmoil in Iraq Caused Uneasiness in Natural Stone Export Natural stone export to Iraq is negatively affected by the unrest in this country. Aegean Mine and Natural Stone Exporters’ Association Chairman Mevlüt Kaya stated that: “Iraq will be challenging for us this year, numbers of the first 6 months are troubling. I will give an example from my company; our shipment dropped down to 8 containers from 24. If the war continues as it is, the sector will face a serious bottleneck because Iraq is our second biggest market after Germany. Since the numbers are high, the effect will

also be big. As the market involves processed products, the loss of the sector will be higher.” The shrinkage of Chinese and Indian markets for natural stone export resulted in a 5.3% drop in Turkey’s total exports in the first half of this year, compared to the same period in 2013, despite a 6.2% value based increase. Aegean Mine and Natural Stone Exporters’ Association Chairman elaborated that this is a reflection of the increase in processed product exports.Indicating that Turkey exports its

natural stone with added value, Kaya emphasized it as a gratifying development. Kaya stated that economic stillness in China and India caused distress in the sector, however, the increase in processed product export have pleased the miners. Adding that there has been up to 14% increase in processed products, Kaya mentioned that considerable amounts of natural stone have been sold to countries such as South Korea, Singapore and Malaysia.

August 2014

Koza Gold’s 2014 First Half Report Announced Koza Gold Operations’ gold production increased by 14.8% to 176,627 ounces compared to the first six months of 2013 according to 2014 first half report published by the company. Company made 429.3 million lira income from this gold production and the numbers of the same period in 2013 were 153.836 ounces and 411.8 million lira. Average grade of total produced gold in the first half 2014 was 5.31 g/t, whereas it was 5.74 g/t for the gold produced in the first six months of 2013.The increase in gold production in the first six months of 2014 is

attributed to the increase in average gold grade processed in Ovacık plant, the increase in the processed ore amount after the increase in capacity at Kaymaz and to Himmetdede plant that became operational.The company holds 56 enterprises and 328 mining licenses throughout Turkey. Currently, four plants of the company have been producing gold and production rates per plants in the first six months of 2014 were as follows:Ovacık: 93,830 ounces of gold (7.54 g/t Au grade), 38,588 ounces silver (4.46 g/t Ag grade),Mastra: 16,200 ounces of gold (4.99

g/t Au grade), 11,814 ounces of silver (5.95 g/t Ag grade)Kaymaz: 62,886 ounces of gold (5.15 g/t Au grade), 31,821 ounces of silver (3.74 g/t Ag grade)Himmetdede: 3,711 ounces of gold (average grade not specified)According to Koza Gold’s declaration in May, Mastra plant operations were halted for lack of storage and usage permits of forest products and explosives. In addition, ores extracted from company’s Çukuralan, Çoraklıtepe plants are transferred to Ovacık plant’s production facilities...

August 2014

Eldorado, Alacer and First Quantum’s Latest Production UpdatesTurkey’s biggest gold producer Tüprag, a subsidiary of Toronto based company Eldorado Gold announced the production numbers of its Uşak - Kışladağ and İzmir - Efemçuku gold mines. According to the press release dated 31 July 2014, 1st half gold production in Kışladağ reached 144,055 ounces (approximately 2,000 ounces less than last year) and 52.003 ounces (approximately 6,000 ounces more than last year) in Efemçukuru. In June 26th, Tüprag recieved the

EIA approval for the expansion of the Kışladağ open pit mine throughput from its current 12.5 million tonnes per annum to a maximum of 35.0 million tonnes per annum.Alacer Gold announced their Çöpler sulphide project gold production numbers for the second quarter of 2014 with a press release dated 29 July 2014. According to the release, total gold production reached 49,795 ounces and the attributable gold production (reduced by the 20% non-

controlling interest at the Çöpler Gold Mine) is 39,836 ounces. The company also mentioned that they remain on track to meet previously released full-year 2014 production and cost guidance.One of the Turkey’s most important copper mining company Cayeli Bakır’s, a subsidiary of First Quantum Minerals, 1Q production numbers are 7,142 tonnes of copper and 9.791 tonnes of zinc.

September 2014

October 2014 15

DRA - Afrasia Consultancy and Engineering AŞ Joint Venture AnnouncedIstanbul, Turkey – DRA of South Africa and Afrasia Mining and Energy AŞ of Turkey have signed a Memorandum of Understanding to join forces within an immediate Joint Venture on all Projects and Project potential within the Afrasia operational footprint; namely Turkey, Turkic Countries, Balkans, Middle East, North Africa and Islamic countries.The intention is to merge the two businesses over a period to create “DRA Afrasia Consultancy and Engineering AŞ” and which intention was communicated and launched at The Turkey-Eurasia Mining Show in Istanbul, Turkey on 3rd June 2014. The new JV between DRA and Afrasia is to offer full Mining Value Chain advisory services, engineering solutions and project financing arrangements for the mining, energy and infrastructure sectors in Turkey within the above mentioned operational footprint.This merger will now provide sectoral clients with a single point of access for all of their advisory, technical, and engineering services, including Greenfield & Brownfields exploration, mining operations right through to mine closure in addition to energy provision, energy management and environmental services.“We are very excited at the level of the combined expertise and experience of DRA Afrasia can deliver. DRA Afrasia AŞ will excel at providing strategies, methodologies, best practices, technical, engineering and green field operations, engineering

and operational performance improvement services, training to ensure delivering practical ideas and performance driven solutions that produce measurable business benefits to the client companies as quickly as possible” said Michiel Van Niekerk (ZA), COO of DRA Global.“This merger is a major vote of confidence in the future of the Turkish Mining & Energy industries in general. The broadened capability offering in the new company gives Turkish sector investors and existing operators access to world-class and best-in-class services in all areas of mining value chain under one point of contact in Turkey for the first time, said Alan Clegg, Executive Chairman at Afrasia Mining and Energy AŞ”“Mr. Clegg went on to add; The areas of primary focus & value-add for DRA Afrasia will now cover (1) Strategic & Mining business advisory both Technical and Financial/Financing (2) Exploration Program design & management (3) Conceptual design and feasibility studies (4) detailed design and engineering (5) Customized design of processing plants and delivery of Modular Plants (6) Large-scale mining infrastructure design (7) Specialized winding/hoisting systems and shafts (8) Headgear design (9) Project and construction management (10) Commissioning (11) Contract operations of mineral processing plants. Basically providing the best industry service offering menu locally in Turkey and in the region”

About DRA Group:DRA (www.DRAglobal.com) is truly global company with its headquarters in Johannesburg, South Africa. It is one of the largest and most successful a multi-disciplinary engineering group that delivers mining, minerals processing and infrastructure services from concept to commissioning as well as comprehensive operations and maintenance services and also DRA is a private company owned by our employees which number over 3,300 people globally. DRA has an office in Toronto, Canada, which deploys industry and sector professionals to support projects in Canada and South America. Additionally, DRA has offices in Australia (Perth and Brisbane), India and China, which support regional and global projects.

About Afrasia Mining and Energy:Afrasia Mining and Energy AŞ, (www.afrasia.com.tr) provides complete solutions to the mining and minerals industry from green-fields exploration to mine closure. AFRASIA’s unique end-to-end services have been developed in-house and through strategic alliances, specifically to fulfil the needs of mining companies who require comprehensive technical assistance in exploration, project development and management throughout mining life cycle and value chain. To inquire about DRA Afrasia AŞ, please email info@afrasia.com.tr or go to www.afrasia.com.tr

June 2014

Tigris Resources’ Latest Updates on Turkish AssetsGold and copper exploration company Tigris Resources focused on South-eastern region of Turkey and on project development in western Turkey released a press release about the listing and capital raising. The Project updates on Gömeç, were also mentioned in the press release.

According to the press release, Tigris has executed a letter of intent with a view to listing its shares by means of a capital pool company transaction with Kirkcaldy Capital Corp, a Canadian TSXv-listed company. The listing and the concurrent capital raising will provide Tigris with the

financial support it needs to prudently develop its current project portfolio and take advantage of the opportunities tough markets and pivotal times such as these can often present.

September 2014

October 201416

4th International Mediterranean Coal Markets ConferenceThe 4th International Conference Mediterranean Coal Markets was held on September 15 - 16 in İstanbul. The conference focused on the importance of coal trading in Mediterranean countries, latest trends and innovations in the energy industry and coal transportation in the region. Coal production and consumption figures in Europe, Northern Mediterranean, Black Sea countries, coal trading dynamics in Pacific and Atlantic basin, benchmarking discussions on coal vs gas vs renewable energy, and the share of coal in energy and cement industry were the topics discussed at the event with Mining Turkey’s press sponsoring. The first day of the organization ended with a pleasant trip to Miniaturk and Bosphorus Tour.The conference started with Undersecretary of Ukraine’s Ministry of Energy and Coal Industry Yuriy Zyukov’s speech. How the critical phase Ukraine had been going through due to the unrest inside affected the coal trade was an awaiting question for the attendees. In his speech, Zyukov pointed the political and social complications Ukraine was dealing with and the effects of these problems on their country and the future effects of this on Black Sea region trade. He also informed the participants about the coal mining of Ukraine. According to the data given,

Ukraine’s coal resources are 117.50 billion tonnes on average. The currently operating reserves are 7.8 billion tonnes, out of 3.3 billion tonnes is private and 4.5 billion tonnes is state operated. Turkey with 1.2 million tonnes places the top in Ukraine’s coal imports. Turkey’s followers are Bulgaria with 0.9 million tonnes, and Morocco with 0.82 million tonnes.According to Yuriy Zyukov’s statements, Ukraine faced a down of 3.4 million tonnes in the production due to the unrest in the country. He noted that the damaged railways and ongoing conflicts made it impossible to reach 1.5 million tonnes of coal. As a result of Ukraine’s needs for different types of coal and the conflicts in the country, Ukraine called for long-term agreements.Several countries from Europe, Middle East, South Africa, North America and South America also spouted in the conference. One of the highlighted topics in the speeches was the high cost of coal energy usage. The highest cost in coal production was said to be come from mining facilities, followed by the transportation facilities which comprises one third of mining business, harbour fees, general expenses and coal preparation. In order the coal prices to be in profitable rates, 40 million tonnes of coal should be withdrawn from market. Whether China’s decrease in coal import was

compensated by India’s increased coal import and Korea’s output gap was among the discussed topics. Another issue discussed in the event was the clean energy challenge especially dominated by Germany to the coal market. Little less than 50% of the energy production of Germany in the last 3 years were via conventional methods, the rest was provided by sun, wind, biomass and wind. Natural gas systems preferred for eco-friendly usage also leaded to an effect on the coal prices. For the last 10 years, Poland had increased its coal import 3% to 21 million tonnes per annum. Even with this increase, the crisis in Russia and Ukraine, and the decrease in China’s and Indonesia’s imports slowed down the rise of coal prices which was expected to go up 90 USD limits hardly on October, 2016.Colombia targeted a more assertive and competitive place in the coal sector with the investments in river transportation, the new port, railway and locomotive researches. The spokesman from the USA pointed out that Turkey was the main metallurgical coal exporter of the States. In the hard coal exportation, Turkey was said to be the third country behind Morocco and Italy.

September 2014

Turkish - Canadian Trade Organisation Explores Mutual Investment OpportunitiesThe resource and energy-rich Western Canada is where significant activities are taking place in mining today. The Vancouver-based Turkish Canadian Chamber of Commerce has a mission to increase investment between the two countries to unprecedented levels. Founded by seasoned Turkish Canadian businessmen in 2009, the Chamber offers professional support services to Canadian and Turkish businesses. The Chamber is represented in Turkey by Mr. Akin Kosetorunu, Director for Turkey, who served as a commissioner for Canada for nearly 3 decades. The

Chamber recognizes that while Turkish entrepreneurs and professionals are especially interested in investment immigration services, most Canadian businesses generally express need for market research for Turkey and consulting services included in some membership plans. AdvantageBC, a statutory trade promotion organisation representing 150 high-profile exporters and financial institutions in British Columbia is a full member of the Chamber. According to BC Government estimates, the Province’s mega LNG project only will create a million new jobs within the

next 5 years, not to mention investment and employment opportunities for Turkish companies and manpower in British Columbia. The Chamber offers quality business services to Turkish and Canadian companies pursuing business possibilities in both countries.Turkish Canadian Chamber of Commerce has a website at http://turkishcanadian.org. Mr. Akin Kosetorunu, based in Ankara, can be reached via e-mail akin.kosetorunu@turkishcanadian.org and Phone 0533 244 8282

October 2014

October 2014 17

In the current world economic environ-ment, business strategies are to drive down costs, increase yields and mar-gins while at the same time maintain-ing their assets. New expansions and upgrades to existing facilities are limit-ed as companies are holding onto their cash reserves. This is more prevalent in the mining industry as commodity pric-es are under severe pressure, and the cost per mined tonne is ever increasing.

The biggest challenge for Mining Companies is to meet high demand by increasing ore throughput while maintaining quality. Thus, measuring downtime and identifying its causes are important contributions that MOMS (Mine Operations Management System) can make in the industry.

To this end DRA Projects (Pty) Ltd devel-oped its MOMS to enable Mining Com-panies to have better control over their supply chain, to have improved control and management of their Process Plants and to ensure that their assets are deliv-ering maximum efficiencies, utilisations and availability. MOMS delivers the right information at the right time to the right people to ensure that pro-active decision making is possible for Mine Management.

The availability of skilled operations and maintenance resources specifi-cally on mines in remote locations is a real issue that affects the profitability of mines. MOMS acts as an enabler by co-ordinating maintenanceactivities as well as guiding operations staff to avoid abnormal occurrences, and en-sures that the assets are used optimally and efficiently on the Process Plant.

The management of and efficient use of power specifically on sites where power generators are used is another benefit of MOMS; if the proper power meters are installed MOMS will deliver a complete power billing solution to our client. The management of water and the statutory

management reporting of the mine will also be handled through MOMS.

An additional benefit of MOMS is the inte-gration of production data into an organ-isation’s business systems (ERP). With the integration of the production and process data into the business systems the follow-ing corporate benefits are realised:

• Common Processes• Common Data• Single Versions• Common Reports• Benchmarking• Support Model• Standardisation• Supports structure for Global

Operating Companies• Supports governance Processes

MOMS covers a powerful combination of financial, distribution, costing, schedul-ing, maintenance and production tools that can be implemented as needed. One of the key components of MOMS involves an easy to use workflow-driven set of processes to manage procurement, production, budgeting, maintenance

and internal cost requisitions. Creating the reporting and input dimensions and frequencies allows for accurate costing at detailed process level and transactional analysis to the operations, responsibility centre and/or equipment.

Due to the remoteness of the majority of mining operations, and the constraints mining companies experience in their supply chain, MOMS delivers the visibil-ity to enable reduction in excess operat-ing spares, stock and consumables.

Finally, MOMS provides an organisation with various delivery options of KPI’s, including the delivery of information and process data any Internet Compat-ible Device.

Mine Operations Management System (MOMS), Revolutionise The Mining Industry

Profilewww.miningturkeymag.com

MOMS

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Management

CONTACTS

Afrasia Mining & Energy Consulting AS

Head Office: Mustafa Kemal Mah. 2146. Sokak Demirler Atlas Plaza No: 14/16 Ankara- Turkey

Phone : +90 (312) 219 44 15

Website : www.afrasia.com.tr

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“Every industry needs some equipment from Atlas Copco”. Even if it sounds extreme at first, the words of Atlas Copco’s CEO, Ronnie Leten, carry great substance. Describing Atlas Copco as a balanced and sturdy table on four legs, Leten states that the 4 important lines of business of the company, namely, Compressor Technique, Industrial Tech-nique, Construction Technique and Mining and Rock Excavation Technique, serves humanity in 182 countries in a wide array of services and products ranging from the production of daily technological gadgets to food pack-aging, factories, hospitals; from gen-erators to heavy mining machinery. Considering Turkey’s market to be very important, Ronnie Leten visited Turkey and shared his views of Atlas Copco and Turkey with us.

RONNIE LETEN EXPLAINS ATLAS COPCO’S PRODUCTS AND MARKETS1873 marks the year Atlas Copco start-ed manufacturing railway cars, which left their place to compressors, mining & construction equipment and pneu-matic tools in time, he states. “If we focus on the sales, it is globally spread; one third of the sales are in North and South America, more than one third are

in Europe and Africa and a bit less than a third are in Asia and Pacific” says the CEO indicating that Atlas Copco’s big-gest market today is US, even though it was China just two years ago. “China is a big market and we have around 7000 people working for Atlas Copco and 26 factories there”, he adds.

Leten proudfully describes preemi-nence of Atlas Copco by stating that throughout the world, about one-third of all cars produced are assem-bled using Atlas Copco tools. “Airbus’ wings are especially assembled by Atlas Copco tools.” Mobile phone pro-duction is another area where Atlas Copco is very dominant; “all the Sam-sung (phones) around the world are assembled by Atlas Copco products” says Leten. Atlas Copco is also domi-nant in the medical market since “50% of the hospitals in US are equipped with Atlas Copco medical systems” as specified by the company CEO.

“Atlas Copco family consists of 44,000 people around the world and our en-gineering centers are based in Swe-den and Belgium. Design and devel-opment are performed in India and China, as well, because these markets are becoming more and more impor-

tant and we want to be more com-petitive there.”

Ronnie Leten shares his view of future energy solutions as follows, “For the fu-ture, I think everything will be focused around environmental energy that will not stop. We still do not know about the solutions of innovations –as is the nature of R&D- but we have many sci-entists and engineers working on find-ing a way to capture the heat energy that is lost and transfer it back to active energy. If someone can come-up with that solution, the world will be totally different.”

LETEN’S OPINIONS ON THE TURKISH MARKET“If we go back in time, I’ve started to work for Atlas Copco in 1985, the indus-try in Turkey was not as active as it is these days and during the last decade, it is becoming more and more active, especially in mining and construction.” Recalling an article on construction, Ronnie Leten cites that Turkey comes second after China. “Especially when it comes to Middle East, Turkey is a big market and is a door to other countries. Turkey also has a good education sys-tem and graduates good mechanical engineers. The share of Turkey in our

Atlas Copco’s CEO Ronnie Leten Visited Turkey

Interviewwww.miningturkeymag.com

With the Pleiades programme, Atlas Copco aims at contributing to the careers of women employees and increase the number of higher ranking women within the group. During his visit of Atlas Copco Turkey’s office in Tuzla, Ronnie Leten joined the women employees’ Pleiades meeting and presented his guidance on their career planning, targets and strategies to achieve these

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sales is a little bit lower now because of the political and regional situation; these conflicts do not create a good in-vestment area. On the other hand, Turk-ish lira is devaluated and I came here to be sure if we are taking the right deci-sions on investment and local compe-tence. We always need to be as local as possible because people tend to work with their local people.”

“In my point of view, all four (business) areas of Atlas Copco are very important in Turkey. But if we mention the poten-tial in money terms, the ones that step forward are mining and compressors. For the construction, we are more likely a niche player because we don’t have excavators, bulldozers etc. These two ar-eas are also growing in Turkey so these are the ones that have more potential. Geothermal is another sector that is de-veloping in Turkey and we are focusing on this area to develop our competence. Turkey is a big and populated country, which is growing fast and Atlas Copco has a role in this growth by providing the instruments you need.”

Ronnie LetenCEO

BORN: 1956EDUCATION: M.Sc. Applied Economics, the University of Hasselt Belgium / 1979NATIONALITY: BelgianLANGUAGES: Fluent in English, speaks French and German. Dutch is the mother tongue.

Ronnie Leten also serves as Chairman of Electrolux AB, the Swedish appliance manufacturer, since 2014.

CAREER•General Biscuits, Belgium / 1979-1985•Atlas Copco Airpower nv., Belgium / 1985-1995•Various functional roles in IT, logistics and manufacturing management.•Plant Manager For Tenneco Automotive Inc., Belgium / 1995-1997•Tenneco Inc. is a leading global supplier of ride control, emissions control and

elastomeric products.•Atlas Copco Compressor Technique / 1997-1999•Business development manager at Atlas Copco Airpower nv.•President Airtec Division / 1999-2001•President Industrial Air Division / 2001-2006•President for the Compressor Technique Business Area / 2006-2009•President and CEO of Atlas Copco AB. / 2009 - Current

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Leten describes Turkey as a very civi-lized and open market and indicates that they have special products for Tur-key. “What we launch in US and Europe, we launch it in Turkey, too. But like SmartRoc, there are products that fit better to local needs; it provides auto-mation from long distance, consumes less energy, etc. We sell productivity to our customers, products doing the same and sometimes better, which work with less energy and time.” An-swering the potential claims of prices being high, Leten underlines the so-phisticated structure of the products that also provide sustainable produc-tivity, consuming less energy and less the time to achieve the job. “So, here in Turkey, we sell our high-end products as in the rest of the world.”

CSR IS EMBEDDED IN THE BUSINESSLeten explains corporate social respon-sibility (CSR) at Atlas Copco: “In our company, there are corporate people, who really focus all the time and only on CSR because it always brings the level higher. For me, CSR starts from the first rank people, ‘Do the workers have a safe and healthy work environ-ment?’ and ‘Do they have the updates on their employability?’ because I think it is important that a worker knows that he or she will be in the team as long as possible but if the company does not need their skills, he or she has to know that they will be employed in another position or another company. And of course, if the people are well with cus-

tomers and they do well for the envi-ronment, I think, in this case, the funda-mentals are achieved”

The CEO extends their CSR view to the quality of their products by making sure that their products are consistent-ly “state of the art, safest, less energy consuming”. He also adds, “Another im-portant thing is the business conduct. We do not withdraw from some cor-rupt environment but we do not take the easiest way; we take our positions and we do not give up the develop-ment of the country. We really make

sure that we train our people, we talk to customers. We have zero tolerance for dirty combat; we have a mission for the global society, businesswise.”

“This is the way we work and these (CSR values) are embedded in our business. Otherwise, if people just talk about what the others need to do, it is worthless. We have to take responsibil-ity and change it; start from ourselves.” Moreover, Leten stated that they have merged the previously separate annual financial and non-financial reports be-cause he thinks they are intertwined.

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“Everybody has their roles for a better society and this is the way we try to do it” as CEO summarizes the CSR view of Atlas Copco.

“Environmentwise, our way of work-ing is completely the same. In China, the heat that comes from the factory is used for testing the compressors, reused for the offices in winter and used to cool the offices in summer” says Leten and proceeds by detail-ing the mechanism, “We build a pool, water basin under the factory to capture and store the heat and it is also used for safety, supporting the sprinkler system. All the electricity we need is to turn the pumps.” The CEO states that these strategies are not confined to a single locale; each facility and product is considered separately. “In a factory in United Kingdom, on the border of Wales, we are extending the factory there. The place is windy and we are working on to get the energy from windmills or solar power. We always force our companies to use most economi-cal trucks, we try to avoid flying and take boats because (travelling by) boat is much more environment-friendly. We always measure our carbon dioxide emissions and water usage. All the new products that we launch to the market has to be bet-ter in the measure of emissions and energy saving. Otherwise we don’t accept the design.”

ACQUIRING OTHER COMPANIES“There are two main reasons to acquire a company: to grow our presence and (enhance) market access. It takes a lot of energy and investment to develop a market and maintain presence; know and reach the right customers.” Ronnie Leten presents an example by explain-ing the reasons of their recent acquisi-tion of the distributor in New Zealand; “We were present in New Zealand for many years and now we will have the access by the company. We bought a distributor to get deeper and deeper in the market, to have a close communica-tion with the buyers. And another thing is, products are changing constantly and rapidly. It is difficult for distribu-tors to catch up with the latest devel-opment and to invest in training their people. In contrast, we always want to extend our customers and have a real close contact with them.”

Atlas Copco CEO indicates that another reason for business acquisition is to ex-pand their portfolio. “For example we bought the market leader of semicon-ductors, the Vacuum, because they had a good market, and also, we hired four or five hundred top vacuum engineers, who can extend our product offer that we can sell in our network.” As Atlas Copco operates in four corners of the world, their research showed that many customers who need compressed air, also need vacuum. Therefore, Atlas Copco acquires for market presence and technology. Leten lays emphasis on that their acquisitions are always positive: “We always buy to grow, we never buy to kill.”

HOW IS IT TO BE THE CEO OF ATLAS COPCO?“I’m in this position for five and a half years. You should have an interest in the world to be the CEO for Atlas Copco, a company present everywhere in the world. I have to update myself on geo-political situations globally. You have to have the ability to interact with a very diverse society. That’s why I always say that we do not have a nationality, there is only one and that’s Atlas Copco. You should accept and respect different na-tionalities to work with. That’s the first thing” answers Ronnie Leten.

“The second thing is Atlas Copco has a very diverse product range used in factories, electronics, food, textile, hos-pitals etc. So you must have a reason-able good feeling for technicalities. You have to understand these businesses and take the steps accordingly.”

“The third is to be ready for transforma-tion and find new opportunities. We are in compressor business for a hundred years but if you compare today’s com-pressors with those ones, you will see a very big difference and innovation. So you should have the energy to change, and research, and at the same time you should keep the team motivated. I think these are the most important qualities to lead this big group.”

As to the work engagement, “I travel a lot. Last year I’ve spend just 40 days in my office. So you have to be physically strong at the same time. People want to communicate with you face to face and in a company that has 44,000 people, it is like a big family” says Ronnie Leten and states that a CEO must care for the wellbeing of the employees and try to solve their issues. He concludes with these words: “If people are not happy, there is less productivity and less busi-ness development. We have to keep ev-eryone happy.”

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GENERAL BACKGROUND ON CYANIDE AND ITS USE IN PRECIOUS METALS MININGCyanide is a general term for a group of chemicals containing carbon and nitrogen. There are about 2,000 natural sources of cyanide, however, the principal man-made forms of cyanide are hydrogen cyanide gas and solid sodium and potassium cyanide. Over one million tonnes of cyanide, representing about 80% of annual production, are used annually in the production of organic chemicals such as nitrile, nylon, and acrylic plastics. Other industrial applications include electroplating, metal processing, steel hardening, photographic applications, and synthetic rubber production. Cyanide is also used in minute quantities in pharmaceutical applications. The remaining 20% of cyanide production is used to manufacture sodium cyanide, a solid form of cyanide that is relatively easy to handle. About 90% of the sodium cyanide produced internationally (i.e., about 18% of total global cyanide production) is used in mining around the world, mostly for the recovery of gold and silver. Cyanide is particularly well suited for extraction of gold (and silver) from low-grade ores and ores that cannot be readily processed through simple physical methods such as gravity separation. The first commercial-scale cyanidation plant used in gold mining began operation at the Crown Mine in New Zealand in 1889, and proved to be so successful that by 1904 cyanidation processes were also established at mine sites in South Africa, Australia, United States, Mexico, and France.

Gold mining operations use very dilute solutions of sodium cyanide in active separation process (100 - 500 ppm).

When dissolved in water, under mildly oxidizing conditions, sodium cyanide solution readily dissolves the gold contained in the ore. The resultant gold-bearing solution is described as “pregnant.” Zinc metal or activated carbon may be added to recover the gold from solution. The residual (“barren”) cyanide solution is typically replenished with fresh cyanide and re-circulated to extract additional gold, or when the ore resource is depleted, may be routed to a waste pond. After gold has been extracted, three principal types of cyanide compounds may be present in wastewater or process solutions: free cyanide, weakly complexed cyanide, or strongly complexed cyanide. Together, the three cyanide compounds constitute “total cyanide.” “Free cyanide” is a term used to describe both the cyanide ion (CN-) that is dissolved in process water, and any hydrogen cyanide (HCN) that is formed in solution. Under normal conditions of temperature and pressure, the concentrations of HCN and CN- are equal at a pH value of approximately 9.4.

While cyanide-bearing solutions are used in mining because they react with gold, they also react with other metals such as Fe, Cd, Cu, Zn, Ni, and Ag to form weak cyanide complexes. These complexes, often referred to as “weak acid dissociable” (WAD), can dissociate in solution to produce environmentally significant concentrations of free cyanide. The rate at which these complexes dissociate depends on several factors, including the initial concentration of the cyanide complex, temperature, the pH of the solution, and the intensity of sunlight, as ultraviolet (UV) light tends to accelerate breakdown effects.

THE INTERNATIONAL CYANIDE MANAGEMENT CODE (ICMC) FOR THE MANUFACTURE, TRANSPORT AND USE OF CYANIDE IN THE PRODUCTION OF GOLDAlthough cyanide is a common industrial chemical, concerns over potential danger to people and the environment have the highest profile in relation to the gold mining industry.xi Following a spill of cyanide from the overtopping of a tailings reprocessing operation in 2000 in Baia Mare, Romania, the United Nations Environment Programme (UNEP) and the International Council on Metals and the Environment (ICME) sponsored a workshop “to review recent accidents involving cyanide, and ways to improve the management of cyanide at gold mining operations.”xii The workshop led to a decision to undertake a multi-stakeholder process under the aegis of UNEP and a multi-stakeholder Steering Committee to develop a voluntary code of technical practice focused on the

Global Best Practices in Cyanide Management: The International Cyanide Management Code (ICMC) and Turkish Experience

Articlewww.miningturkeymag.com

CONTACTS Professor Ata Akcil, Ph. D.-Eng.

ICMC Technical Expert Auditor, Gold Mine Verification Audits

S.D. University, Isparta, Turkey

E-Mail: ataakcil@sdu.edu.tr

Glenn Mills, EP (CEA)

Principal Consultant

ICMC Lead Auditor/Technical Expert Auditor, Gold Mine Verification Audits

ENVIRON International Corp., Seattle, WA, USA

E-Mail: gmills@environcorp.com

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gold mining industry. An independent International Cyanide Management Institute (ICMI) was created to develop and manage the International Cyanide Management Code (ICMC). The ICMC was established as an entirely voluntary standard, and is intended to complement existing obligations to comply with the applicable laws and regulations of the political jurisdictions in which the operation is located. The specific objective of the ICMC is toprotect workers, communities and the environment from the adverse effects of cyanide use in mining; and to improve the management of cyanide by cyanide producers, transporters, and mining companies. Cyanide producers, transporters, and mining operations that adopt the ICMC must have their cyanide-related operations audited by a qualified and independent third party to determine ICMC compliance. Summary versions of audit reports as well as the credentials of the third party auditor are made public by