What Are the Advanced Changes in the Mining Sector?

Innovative Regulations in the Mining Sector

Significant changes have been made to the financial obligations of the mining sector. The new regulation published in today's Official Gazette updates the investment guarantee and state fee rates.

Investment Guarantee Set at 70%

With the new regulation, the investment (rehabilitation) guarantee will be applied at a rate of 70%, while the state fee will be increased by 1.5 times, to be collected as 50% more than the operating license fee. In the previous application, the state fee was collected at the amount of the license fee.

New Production Value Condition

This regulation, which covers all operating licenses, including those of public institutions and organizations, stipulates that if the production value is less than the state fee, 50% more than the operating license fee will be paid. For consolidated licenses, the total of the annual operating license fees will be taken as a basis.

Compliance with the Environment

The amount allocated for the environmental compliance plan guarantee has been increased to 70% with the new regulation, while the phrase “environmental compliance” has been updated to “rehabilitation.”

New Conditions for License Durations

For license holders other than public entities, a requirement has been introduced that at least 15% of the total production declared in the operating project must be achieved to be able to obtain an extension. Licenses of those who do not meet this condition will not be extended.

According to the regulation, Group I, Group II, Group III, and Group V mining areas are planned to be licensed through tendering. The General Directorate of Mining and Petroleum Affairs may also use the tendering method for other group minerals if deemed necessary.