Türkiye is believed to have a gold mining potential of as a lot as 6,500 tons, with a good portion of it but to be extracted, in accordance with a prime trade official who burdened the immense worth of untapped assets and their potential to contribute to the financial system.
“We know the location of 1,500 tons of this potential and have already started production,” Mehmet Yılmaz, head of the Turkish Miners Association (TMD) stated. “There are 5,000 tons still waiting underground, valued at approximately $300 billion.”
Yılmaz emphasised the potential financial advantages of home gold manufacturing, notably in mitigating inflationary pressures.
Gold imports have been one of many most important elements fueling Türkiye’s international commerce and present account deficits, which the federal government has sought to curb via a number of insurance policies spearheaded by aggressive financial tightening over the previous 12 months.
It had additionally applied a partial suspension of gold imports in mid-February 2023 and later introduced import quotas and extra cost to decrease the deficits and rebuild central financial institution reserves.
Türkiye has a protracted historical past of home gold possession in each jewelry and funding kind, and is without doubt one of the largest gold markets globally.
Stubbornly elevated inflation and depreciation within the Turkish lira fueled demand for gold by households over the latest years. That additionally prompted a tradition of out-of-system financial savings, also known as “under-the-pillow” financial savings.
Authorities have sought to influence households to combine these financial savings, notably gold, into the financial system, however have up to now struggled to develop convincing monetary merchandise.
Some $31 billion had been spent on gold imports in 2023, in comparison with simply $12 billion in exports, leading to a $19 billion commerce hole. The demand for gold has subsided since after final 12 months’s presidential and parliamentary elections.
“When the central bank exercises its preemptive right to purchase the gold we produce, it pays us in lira. This is where the local production has an impact on inflation because otherwise, the gold would have to be bought with dollars,” Yılmaz defined.
He was talking at a gathering with a bunch of journalists in Ankara.
Inflation reached an annual 75% in May, which is claimed to mark the height earlier than charge hikes and a comparatively secure lira deliver aid.
The mining sector, in accordance with Yılmaz, is in want of regulatory reforms to expedite mining permits and increase manufacturing.
Over the previous decade, the variety of mining exploration licenses has plummeted from 40,000 to five,000.
Green transition
Discussing the affect of the worldwide inexperienced transition, Yılmaz predicted a considerable enhance in want and the demand for mined assets.
“The green transition will increase the need for mining ninefold. As we move away from fossil fuels and toward more renewable energy sources, we will need to produce more batteries, store electricity, and manufacture solar panels and wind turbines,” he stated.
“This translates into a significantly higher demand for industrial and precious metals like lithium, cobalt, nickel, copper, and even gold.”
Maximizing worth from boron reserves
Yılmaz additionally addressed Türkiye’s place as a worldwide chief in boron, estimated to be holding roughly 70% of the world’s reserves of the important thing materials.
He underscored the potential financial advantages of processing boron into high-value finish merchandise.
“Instead of selling boron as ore or intermediate products,” Yılmaz stated, “we can generate significant added value by producing intermediate or finished goods.”
“A ton of raw boron is valued between $300 and $500. If processed into intermediate products, the price can rise to $4,000 per ton. By advancing technologies such as glass and armor production domestically, the value of boron could reach $500,000 per ton,” Yılmaz famous.
Yılmaz additionally burdened the significance of creating unbiased oversight mechanisms throughout the mining trade to make sure compliance with security requirements.
He famous that international locations adhering to sustainable mining rules have seen a discount in office accidents. “We need clear standards for all stages of mining and a self-regulating, independent auditing system,” he urged.
Source: www.dailysabah.com