IMIB PRESIDENT ÇETİNKAYA DEMANDED A REDUCTION IN GOVERNMENT FEES AND FORESTRY FEES FOR 2024:
The agenda of the Turkish economy is the Medium Term Program (MTP)… The program, which includes economic priorities and targets for the 2024-2026 period, draws our 3-year road map. So what are the items related to the mining sector in this program and what does it mean for the sector? We sat down with Rüstem Çetinkaya, President of the Mining Sector Board and the Istanbul Mineral Exporters’ Association (İMİB) in Verona to discuss this issue. We talked about the MTP and the course of the natural stone sector.
1- LICENSE SECURITY IN THE MTP
Let’s start with the MTP. “There are a total of 5 items in the MTP that we constantly underline,” says Çetinkaya, who we see is happy with the items related to mining in the program, and continues as follows: “The most important of these is license security. This article, which is referred to as investment security in the MTP, is very valuable for us. After all, we are the people who operate state-owned mines by obtaining operating licenses for certain periods of time. Naturally, we talk about the necessity of the continuity of these licenses. This article in the MTP includes the objective of defining mineral exploration activities as activities in the public interest and making basic regulations to increase investment security. We are very happy about this article and we will follow it.”
2- APPROVAL FOR ONE-STOP OFFICE
According to İMİB President Çetinkaya, another important achievement in the MTP is the emphasis on what the sector defines as a ‘one-stop office’. Rüstem Çetinkaya explains that article as follows… “The MTP talks about the management of all natural resource management systems from a single source. We had always wanted the permits we received from 8 ministries and 16 different institutions to be carried out from a single source, and we called this a one-stop office. We see that this has found a place in the MTP. Permits need to be obtained from a single point and in an expeditious manner, and miners should not be thrown around in these processes. In this respect, having a single point of contact is very valuable. We also demanded that the Ministry of Natural Resources be separated from the Ministry of Energy. The inclusion of the term Natural Resources in the program is an important step in this sense.”
3- DIFFERENT MTP, DIFFERENT APPLICATION!
In the 3-year term, the items related to mining in the MTP are positive for the sector. However, if you ask if there is a change in the actual operation, the answer is negative. Rüstem Çetinkaya makes a call to the bureaucracy at this very point… “The fact that mineral exploration is defined as a public activity in the MTP shows how much importance is attached to this work. However, this will set by the president should not be eroded by the bureaucracy. Currently, the perspective of the Ministry of Forestry is not in line with this will in the MTP. There is a need to convey this will to the institutions and society. We will be the followers and the soldiers of this.”
4- RAW MATERIAL NOT OIL
Rüstem Çetinkaya underlines the need to look at mining from a broader perspective… According to the Chairman of the Mining Sector Board, the world will be very different in 2050. He summarizes as follows: “As the Mining Sector Board, we have been saying that a law on critical raw materials should be enacted. Because by 2050, the world will be dependent on raw materials. It will not be dependence on oil and natural gas, but on minerals. We emphasize this hundreds of thousands of times. For example, in 2050, if you want to transition to clean energy, if you talk about green energy, you have to have at least enough critical minerals to be self-sufficient. This is a must for every country. For example, in 2050, there is talk of transition to green energy. Electric vehicles are put forward as the ‘savior’ here. However, I can say that in order to produce electric vehicles, the world needs to mine 6 times more minerals than it does now.”
5- CALL TO THE HEAD OF COMMUNICATION
Talking about the 2050 vision, the topic turns to Turkey’s mineral potential. Çetinkaya emphasized Turkey’s richness in this field and said, “Some people say, ‘We don’t have every mineral. No, we are a very wealthy country in terms of mining and we need to find and extract our own critical raw materials as soon as possible. However, anti-mining sentiment is on the rise in Turkey. This is unbelievable! In an earthquake or a fire, you mobilize all your resources, you intervene with your construction equipment, and then the question arises, “Did you pay your personnel double salary?”! We are ready to sit around a table and meet with everyone who is environmentally conscious. However, there are also groups hiding behind the mask of environmentalists, whose real aims and sources of income are different. The state needs to step in here, and the Communications Directorate needs to work with us on mining. We need to create a synergy with the means at the disposal of the Directorate of Communication. We are making our call there as well.”
6- VERY DIFFICULT TIMES AHEAD
After the MTP and mining, we focus a little more on our own field and come to the current state of the natural stone sector. Unfortunately, Çetinkaya underlines a troubling picture in this sense: “By the end of 2023, the total exports of the mining sector will drop to 5.5 billion dollars. There is a loss of 1 billion dollars. In marble, where we closed 2022 at the 2 billion dollar threshold, we seem to be below 1.8 billion dollars by the end of 2023. There is a serious decrease of 20 percent in the US market. Although there is a decline of around 4 percent in China for the moment, we anticipate a much steeper decline in the last quarter. General data shows us that this decline will continue. We expect this decline to continue in 2024 and 2025. In fact, when we look at the global economic data, we cannot get any positive data for 2026. A very, very difficult period awaits us.”
7- COSTS MUST BE REDUCED
In this pessimistic picture, what should be done to ensure that the sector can continue on its way with minimal losses? İMİB President Rüstem Çetinkaya concludes our interview by addressing both companies and the state: “A difficult period awaits all our friends. Since there is a global downturn in sales, there is not much to be done in this area. Our sector has to brand itself and sell value-added products. There is no other way. On a company basis, we need to reduce our costs. The most important item to reduce our costs is the fees charged by the state. All administrations must take measures to relieve us in forestry fees, license fees and state rights. Otherwise, miners will be in a very difficult situation!”
RELEVANT ARTICLES TO MINING IN THE MTP
1- Necessary arrangements will be made to ensure that all natural resource management systems have a coherent institutional structure and that these activities are managed from a single source.
2- It will be ensured that mineral resources are explored at international standards and brought into the economy, and sustainable mining policies will be promoted in exploration and production.
3- Exploration, production and enrichment activities of strategic and critical minerals identified within the framework of responsible mining principles will be increased.
4- Mineral exploration activities will be defined as activities in the public interest in the legislation and a new basic regulation will be prepared to increase investment assurance in which the operation of mines will be discussed in detail according to their types, qualities and sustainability principles.
5- R&D activities for the development of domestic coal and clean coal technologies and obtaining products with high economic value will be continued.
