Gold And Silver Mining Globally And In Turkey

Calculations based on explorations in numerous mine areas and world gold formation models reveal that Turkey’s gold potential is 6,500 tons. The mine value of this potential is worth $70 billion…

Prof. Dr. GÐ"јven Ð"-nal

Ð"oTÐ"Ñš (Istanbul Technical University)

Mine Faculty Scientific Study of Ore and Coal Preparation and Evaluation

With soaring gold prices and new landmarks in the technology of processing gold ore, the world gold mining has grown rapidly starting with the 1970s. World gold production has almost doubled in the last 25 years. As a consequence, while explored gold ores are being processed, a period of intense exploration and investment has commenced globally.

From the onset of humanity until today, gold has been used in ornaments and as money. Nowadays, it is used more and more in electronics, communications, laser, optics, aviation and medical industries because of its superior (rare) qualities such as easy workability, non-corrosiveness and conductivity. Since it is non-allergic causing, the medical profession draws on it as well.

GOLD MINING IN THE WORLD

The world’s total processable gold reserves are 42,500 tons and about 65% of this is in the USA, Canada, Australia and S. Africa, which occupy the top places in world gold production. In 2000, $1.09 billion were spent for gold explorations in the world. 49% of this was spent in three advanced countries, the USA, Canada and Australia.

53% of world gold production takes place in four industrialized countries: the USA, Canada, Australia and S.Africa. Compared to 1980, production has swelled by 13 times in the USA, 18 times in Australia and 3.5 times in Canada. Europe, excluding Russia has an annual gold production of 24 tons, 1% of world production.

India, USA, Saudi Arabia, China and Turkey take up first place in world gold demand. Although Turkey isn’t placed in world gold production rankings, it is fifth in demand.

In all continents of the world, in 24 countries, 2,530 tons of gold was produced in 2002. Additionally, 146 new projects in Canada, USA, South America, Australia, Bulgaria, Greece, S. Africa, other African countries, Armenia, India, Kazakhstan, the Philippines, Russia, Tajikistan and Uzbekistan are on the brink of becoming investments churning out 425 tons/year. In Turkey’s neighbors, at 3 gold mines in Greece, 2 in Cyprus (Greek Cypriots), 2 in Armenia and 2 in Bulgaria, investments have reached the final stages.

GOLD MINING IN TURKEY

According to present-day written and archeological findings, gold has been produced in Anatolia since 3000 B.C. However, in Turkey, there is now only silver mine production since 1987 and the OvacÐ"±k (Bergama) gold mine that started production in 2001. In return, Turkey is one of the world’s largest gold processing and consumption markets. Its annual gold imports are around 200 tons.

In light of recent developments in world gold mining, our country has caught the attention of foreign investors, both in terms of geological diversity and the availability of the investment environment in the 1980s. Hence, for the first time in the history of our Republic, an opportunity has arisen to make a start in gold mining. Upon the test production of the OvacÐ"±k Gold Mine, recognized gold mine companies reassumed explorations in Turkey. There are 9 foreign-capital owned companies that have been carrying out gold mining activities since 2002.

Gold producing foreign companies which came to Turkey subsequent to the change in the Mine Law in 1985 found economic gold deposits. Estimates based on explorations in numerous mine areas and world gold formation models reveal that Turkey’s gold potential is 6,500 tons (Prof. Dr. A. Erler, Turkey’s Gold Potential and Methods to Explore Mine Sources, 1997). The number of gold deposits constituting this potential is presumed to be 267; of these, it is estimated that 13 could contain above 150 tons of gold, 40 between 30 and 150 tons and 214 less than 30 tons.

The worth of Turkey’s unextracted gold potential is approximately $70 billion. Exploration and investment expenditures for production are calculated at $20 billion. The total value-added likely to be brought from this gold potential to our country is at the $300 billion level, expected to employ 100,000 people indirectly. (These values have been taken from Prof.