IMIB/Hammer: The Mining Sector Awaits Support
Foreks - Metin Çekiç, Vice Chairman of the Board of the Istanbul Mining Exporters Association (IMIB), made a statement on the occasion of December 4th, World Miners Day, highlighting the contribution of miners to the country's economy. He called for no increases in public financial obligations for this year and requested restructuring of debts from previous years. Çekiç emphasized the need for necessary support to ensure that the sector achieves a sustainable and competitive structure.
On World Miners Day, Metin Çekiç stated that miners, who bring the underground riches to light with great dedication and effort, are doing invaluable work. He remarked, “The efforts made to utilize our natural resources for the development of our country are a guarantee for our future. The work we carry out strengthens our country's exports and economy, and adopting a sustainable and environmentally friendly mining approach is a source of pride for us. On this occasion, I extend my warmest wishes to all of our miners for World Miners Day.”
WE DEMAND NO INCREASE THIS YEAR
Metin Çekiç pointed out that the mining sector and miners are working for the future of the country, stating, “For the year 2023, a revaluation rate of 122.93% has been set, which also applies to forest land prices. The mining sector pays a very high Forest Use Fee compared to global examples. This fee, which was 2.1 billion TL in 2021, exceeded 5 billion TL in 2023 due to the revaluation rate. In 2024, our costs have continued to rise. This situation has imposed a serious financial burden on the sector while weakening its competitiveness. We are facing a similar situation this year as well. As miners, we demand that there be no increase in our public financial obligations for this year. Any increase in the revaluation rate affects our entire sector. Further high increases will lead to the closure of businesses in the mining sector, particularly natural stone companies.”
RESTRUCTURING AND INSTALLMENT OPTIONS
Metin Çekiç emphasized that the mining sector has contributed over 6 billion dollars in exports and has provided employment for 150,000 people. He suggested that it would be beneficial to provide restructuring and installment options for overdue debts of all firms operating in the mining sector, especially natural stone companies. He stressed that mining should be an uninterrupted public service, saying, “As a mining sector, we work diligently to maximize public benefit. We believe that similar supports provided to other sectors, which are not subject to special consumption tax, should also be extended to the mining sector regarding basic needs like fuel. The lack of guarantee for the transition to an operating license in exploration activities poses a significant risk to our sector. The regulations link the transition to operating to complex permit processes and additional fees, even if success is achieved during the exploration phase. Moreover, since these permits are tied to many different institutions, an adverse decision can render all efforts futile. Considering Turkey's dependence on the import of gold, copper, zinc, and other raw materials, the evaluation of our underground resources is of vital importance. Facilitating these processes and providing more support to our sector will greatly contribute to our country's economic growth. As miners, we have been informing both the public and bureaucracy for years. Thanks to this awareness, we believe that a more effective support mechanism will be established in the new term.” Metin Çekiç also highlighted the importance of expanding the VAT law exceptions, currently granted only for gold, silver, and platinum mining, to other mineral groups.