Mining struggles with ’permit crisis’
Güncelleme Tarihi:
SELMA ŞİMŞEK BEKTAŞ
Oluşturulma Tarihi: Temmuz 09, 2009 00:00
ISTANBUL - Turkey’s mining sector has been going through a "permit crisis" for the past six months, with government loopholes and regulation changes causing problems for many mining companies.
In February, the Supreme Court of Appeals canceled the mining permit regulation, which had come into effect in line with the Mining Act. And since February, all investments requiring permits have stopped. The Environment Ministry, municipalities and special provincial administrations are turning down applications from companies for research and production. According to sector representatives, hundreds of companies are currently awaiting permits for research and drilling.
’Hands tied’
"Our hands are tied. There are so many companies waiting for permits that we cannot even guess what our losses are," said İsmet Kasapoğlu, chief of the Mining Sector Presidential Council Union. Ahmet Eren, chief executive of Eren Mining, claimed the sector has lost nearly $1 billion due to the legal loophole.
Kasapoğlu said the union applied on June 23 for a legal change in the situation. "Our hopes are tied to a positive decision," he said. "Due to the global crisis, the sector already was in dire straits. As global demand contracted, so did the mining sector. Our exports have fallen 51 percent compared to last year. In some mines, production has halted."
Nurettin Ahi, a member of the board of Teck Cominco, said the Supreme Court of Appeals decision seriously wounded the sector. "We cannot use this year’s budget only because of this decision," he said. "A budget of $2 million awaits a solution. We were going to employ new workers, but we had to postpone."
Three years ago, Eren Mining was awarded licenses to operate nine quarries, but the firm cannot operate because of the legal loophole, Eren said. "We had paid 300 billion Turkish Liras in the bidding, and these are not the only ones," he said.
’Hands tied’
"Our hands are tied. There are so many companies waiting for permits that we cannot even guess what our losses are," said İsmet Kasapoğlu, chief of the Mining Sector Presidential Council Union. Ahmet Eren, chief executive of Eren Mining, claimed the sector has lost nearly $1 billion due to the legal loophole.
Kasapoğlu said the union applied on June 23 for a legal change in the situation. "Our hopes are tied to a positive decision," he said. "Due to the global crisis, the sector already was in dire straits. As global demand contracted, so did the mining sector. Our exports have fallen 51 percent compared to last year. In some mines, production has halted."
Nurettin Ahi, a member of the board of Teck Cominco, said the Supreme Court of Appeals decision seriously wounded the sector. "We cannot use this year’s budget only because of this decision," he said. "A budget of $2 million awaits a solution. We were going to employ new workers, but we had to postpone."
Three years ago, Eren Mining was awarded licenses to operate nine quarries, but the firm cannot operate because of the legal loophole, Eren said. "We had paid 300 billion Turkish Liras in the bidding, and these are not the only ones," he said.