New Mine Brings Turkey Closer to 100-Ton Annual Gold Target

turkey gold reserves

As Turkey’s 42-ton gold production, sets a record of contributing $2.4 billion to the national economy, a newly discovered reserves and its mining facility is set to further this number to a 100-ton annual gold production target. This development was reaffirmed by Mehmet Yılmaz, chairperson of the Gold Miners Association on Monday.

According to his dialogue with the AA, investments enabling Turkey to reach its gold production potential are to be evaluated within a “strategic” scope in order to reduce the country’s foreign trade deficit. Yilamz also said that despite last year’s high gold potential of the country, over $25 billion worth of imports were made as a result of high domestic interest. This demand significantly increased the foreign trade deficit, that can only be reduced through domestic production.  

“We have enterprises producing gold at international standards and gold refineries. We have a Precious Metals Market at Borsa Istanbul that manages its imports and very strong jewelry industry,” he said.

Turkey has over hundreds of specialists, trained to carry out jewelry design, craftsmanship and marketing at international standards. Yilmaz commented that Turkey is one of the rare countries that carries out all production steps right from raw materials to final product in the gold industry.

Last year, some 11.5 tons of produced gold was paid to the state as tax and permit fees, Yılmaz said.

Industry and Technology Minister Mustafa Varank’s announced last week about the 20 tons of gold reserves worth  $1.2 billion at Koza Altın’s Mollakara mining facility in the eastern Ağrı province.  Yılmaz extended, “We have been able to convert 1,500 tons of our 6,500 tons of gold potential into producible gold reserves. The gold mine facility, whose foundation was laid in Ağrı, will make a significant contribution to our country’s annual gold production target of 100 tons.”

The gold mining in Turkey is carried out in compliance with European standards. According to Yilmaz, the technology of extraction and separation matches that of developed nations like Canada, Australia, and Sweden. Turkey also practices the same kind of sustainable mining methods as the aforementioned countries. 

Given that, Koza Altın is set to invest a total of $160 million in the gold mining facility. The minister also affirmed that a total of 197 drillings have been carried out in the Mollakara gold and silver project to date.

The first gold casting in the mine, which will also have a processing facility, is aimed to be made in the last quarter of 2022. The enterprise, where 500 people will be directly employed, will see indirect employment that would reach 2,300 people.

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