1. REPUBLIC OF TURKEY PRIME MINISTRY
Investment Support and Promotion Agency of Turkey
(ISPAT)
Turkish Mining Industry

2. AGENDA
The Agency Overview of Turkish Mining Industry Deep Dive on Priority Minerals of Turkish Mining Industry New Incentive Regime
How did we prioritize these minerals ı goster

3. Investment Support and Promotion Agency of Turkey (ISPAT)

4. ISPAT
ISPAT
Attached to the Prime Ministry and reports directly to the Prime Minister
Private sector approach
Result oriented
Multi-lingual, professional and dedicated project directors
ONE STOP SHOP
2 offices (Ankara – Istanbul)
Establishment of the Agency in 2007 is a proof for improvement of the investment climate in Turkey

5. The International Network
ISPAT
The International Network
International representatives network worldwide and strategic partners in Turkey (Embassies, Consulates, Commercial Attaches, NGO’s etc)

6. Turkish Mining Industry
Turkey’s Potential is:
2.5% of the World Reserves of Industrial Raw Materials
0.6% of the World Reserves of Metallic Minerals
Number of Companies with Foreign Capital in Mining
SOURCE: USGS, MTA

7. Turkish Mining Industry
2010, U.S. $ billions +
Turkey strong in exports of
Gold jewelry
Natural stones and cement
Major trade imbalances in
Coal
Copper
Aluminum
SOURCE: UN Comtrade; EtiBor; McKinsey&Company
+Includes all products in the value chain in addition to ores and concentrates
*Raw Materials ,Ores and Concentrates

8. Turkish Mining Industry
Current Global Market Size (U.S $Billion)
Global Crisis
SOURCE: McKinsey&Company, State Planning Organization

9. Gold
Overview
Turkish gold reserves are around 700 tons (increased from 600 tons over the last 5 years, MTA alone discovered 45 tons in 2009). Probable reserves estimated around 1,700-6,500 tons1 making up for as high as 1/8th of globally proven reserves.
Gold production in Turkey gained momentum following the legislation change facilitating exportation of unrefined gold.
1 ODTU metallurgical engineer Ayhan Erler and MTA’s cooperative study concluded 1,700-6,500 tons of gold potential in 580 different locations in Turkey
SOURCE: MTA, Istanbul Gold Exchange, McKinsey&Company

10. Gold Turkish Gold Reserves
Anatolia Minerals
Koza Gold mine
Eldorado Gold
Potential gold-silver reserves
Turkish Gold Reserves
Turkey has 700 Tons of proven reserves concentrated in Aegean and Black Sea regions
Reserve
Name
Reserves
2010 Tons
Production
2010 Tons
Company
Possible Production Sites
SOURCE: MTA, Istanbul Gold Exchange, McKinsey&Company

11. Copper Turkish Copper Reserves Copper Imports
Operable Mines
Operational Mines
Downstream industries such as;
Automotive(Expected to grow %11 average and reach up to 23 $ Billion in 2015)
Construction(Expected to grow %7 average and reach up to 79 $ Billion in 2015) will boost Copper Imports.
Copper Imports
2010,thousand metric tons
+5%
Primary Production
Given small refining capacity most of the copper sold as concentrate.
Refined copper importun içinde neler var? 5
Concentrate production
Exported as concentrate
Refined in domestic facilities
Secondary production from scrap
Refined Copper import
Total domestic refined Copper consumption
SOURCE: MTA,McKinsey&Company

12. Aluminum Turkish Bauxite Reserves
In midstream Turkey has a big gap driven primarily by automotive and construction industries.
Net Trade
2010, U.S. $ Billion
Mid-stream production by Aluminum source
2010, thousand metric tons
Semi production 63
Bauxite mining + alumina refining
Aluminium smelting
0.025
1.0
1.0
Upstream
Midstream
Downstream
Secondary (scrap to aluminum players)
Primary (Seydişehir)
Net imports
SOURCE: MTA,McKinsey&Company

13. Chromium Chromium Production Turkish Chromium Reserves Chromium Export
Turkey has %6 of world production.
Worlds 3rd chromite exporter with %12.8.
Chromium Production
Chromium Export
Thousand tons
U.S. $ Million
+1148%
SOURCE: MTA, Team Analysis

14. INVESTMENT INCENTIVES IN TURKEY
1. General Incentive System
2. Incentives for Large Scale Investments
3. Regional Incentive System
4. Incentives for Strategic Investments

15. Employer’s share for insurance premium payment
NEW INCENTIVE SYSTEM
1. General Incentives
2. Regional Incentives
3. Incentives for large-scale Investments
4. Incentives for Strategic Investments
VAT Exemption
Custom Duty Exemption
Tax Deduction
Employer’s share for insurance premium payment
Land provision
Interest Support (except 1st and 2nd regions)
Interest Support
VAT Refund
In the 6th Region; income withholding tax and employee’s share for insurance premium payment

16. Regional Incentive Map

17. SPECIFIC PRIORITY INVESTMENTS
Specific Priority Investments to be supported by measures of Region V regardless of the region of the Investment:
Mining investments
Railroad and maritime transportation investments
Test facilities, wind tunnel and similar investments made for automotive, space or defense industries
Tourism investments in Cultural and Preservation and Development Regions determined by the Council of Ministers Decree
Primary, Middle and High School investments by private sector
Specific pharmaceutical and defense industry investments with minimum investment amount of 20 million TL

18. LARGE-SCALE INVESTMENT INCENTIVE SCHEME
Investment Sectors
Amount of minimum fixed investment (million TL)
Production of Refined Petroleum Products
1000
Production of Chemical Products
200
Ports and Port Services
Automotive OEM Investments
Automotive Supply Industry Investments 50
Railway and Tram Locomotives and/or Railway and Tram Cars
Transit Pipeline Transportation Services
Electronics
Medical, High Precision and Optical Equipment
Pharmaceuticals
Aircraft and Space Vehicles and/or Ports
Machinery (including electrical machinery and equipment)
Mining investment (including metal production)

19. STRATEGIC INVESTMENT INCENTIVE SCHEME
Investments meeting the criteria below are supported within the framework of the Strategic Investment Incentive Scheme:
Having an import of at least 50 million USD for goods to be produced in the last one year period.
Realizing the production of intermediate and final goods with high import dependence of which more than 50 % are supplied by import,
Having a minimum investment amount of 50 million TL ,
Creating minimum 40 % added value,

20. APPLICATION OF THE STRATEGIC INVESTMENT
Incentives (‘000 TL)
Investment Amount: 50 Million TL Employment: 100 People
Investment Amount: 500 Milyon TL Employment: 1000 People
VAT Exemption
1.140
11.400
Custom Duty Exemption
700
7.000
VAT Refund -
11.460
Tax Deduction
25.000
Employer’s Share for Social Security Premium
1.445
14.448
Interest Support
2.500
Land Allocation
Total State Support
33.285
Support Density (%) 67 69

21. ON

22. THANK YOU FOR YOUR ATTENTION For Questions and Inquiries
Dr. Serdar Altay
Mehmet Tangut