BMI's Executive Summary

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Turkey is home to 2.5% of the world–s industrial mineral resources and produces around 60 different metals and minerals. Surprisingly, mining activity generates only about 1.5% of the Turkish GDP.

Turkey's chief mineral products comprise borax ores, bentonite, perlite and some metallic ores such as iron, bauxite, chromite and gold. A reasonable level of coal production is also reported in Turkey. In the late 1990s, Turkish mineral exports dipped severely as a result of the East Asian Crisis that affected its chief trading partners. Mining industry exports have, however, shown an uptrend in recent years. 2005 saw exports of non-ferrous metals and metalliferous ores increase by 38% and 37%, respectively, over the previous year. Moreover, with an annual capacity of 23mn tonnes, Turkey's iron and steel industry is currently ranked twelfth in the world.

Turkey possesses 62% of global borax reserves. Exports of natural stones such as marble have also increased substantially in recent times, reaching a value of US$800mn in 2005. Other significant mining exports include magnesite, copper, zinc ores and feldspar. Recent exploration activity has also indicated increased reserves of gold and coal.

In line with its aim of full European Union (EU) membership and further integration with the global economy, Turkey has amended its principal mining legislation. This has eased the licensing procedures and done away with unnecessary bureaucratic controls. Environmental assessment guidelines and licence fees have also been changed to attract foreign investment. Though this has been largely accepted as a step in the right direction by investors the world over, environmental groups and local investors have come out strongly against the suggested reforms. Also, as a part of its reform agenda, the government continues to reduce its ownership in state-owned mining operators, the latest move being the privatisation of the nation's largest steel company.

Contents

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Executive Summary

Chpater - Industry Trends And Developments

Market Overview

Regulatory Structure

Chapter 1 - Project And Property Updates

Metals

Minerals

Table: Mines In Turkey

Chapter 2 - SWOTS

Turkey Political SWOT

Turkey Economic SWOT

Turkey Business Environment SWOT

Chapter 3 - Business Environment

Introduction

Regional Overview

Table: Regional Business Environmet Overview

Turkey: Business Environment Ranking

Table: Business Environment Rankings

Legal Framework

Labour Force

Table: Demographic Indicators (2005)

Table: Employment Indicators

Foreign Investment Policy

Chapter 4 - Political Environment

Domestic Politics

Foreign Policy

Chapter 5 - Industry Forecast Scenario

Metals Price Outlook

Risks To Outlook

Global Industry Overview

Regional Analysis

Turkey Mining Industry Forecast

Table: Turkey Mining Industry Forecast

Chapter 6 - Competitive Landscape

Table: Turkey Mining - Key Players

Chapter 7 - Company Monitor

Anatolia Minerals Development

Kefi Minerals

Eldorado Gold Corporation

Appendix A: Mining Ratings: Methodology

Introduction

Breakdown of Ratings

Breakdown Of Components

Appendix B: The World Economy

Outlook And Risks

Table: Global Assumptions

United States

Soft Landing Ahead

Risks To Outlook

Europe

Moderating, But Solid Economic Growth

Medium-Term Growth Outlook

Japan

Japan In 2007 & 2008

Japan's Medium-Term Prospects

China

China In 2007 And 2008

China's Medium-Term Prospects

Oil

Appendix C: Regional Demographic Data

Table: Wages (ave. labour force per annum), US$ PPP

Table: Population

Table: Household Spending Per Capita, US$

Table: Private Consumption Per Capita, US$ PPP

Table: Market Size, GDP, US$bn