saudi arabia & turkey mets webinar
TRANSCRIPT
SAUDI ARABIA & TURKEY METS
WEBINAR
2 October 2019
1. Welcome
2. Austrade Speaker: Abed Hakmi, Senior Resources & Energy Manager, Austrade Riyadh
3. Guest Speaker: Meshary AlAli, CEO – Golden Compass Mining & Geological Company,
Vice-President, Saudi National Mining Committee
4. Austrade Speaker: Tibet Kara, Country Director – Turkey, Austrade Istanbul
5. Guest Speaker: Tamer Gezbul, General Manager, Invictus Madencilik A.S.
6. Question and Answer Session
WEBINAR AGENDA AND SPEAKERS
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Saudi Arabia Resources & Mining Sector
SAUDI MINING OVERVIEW
• Developing the mining sector is critical for Saudi Arabia to diversify its economy away from a
dependence on oil
• Saudi Arabia has ambitious plans to raise the value of its mining operations to reach SR 260bn
($69.3bn) under Vision 2030 and create more than 100,000 jobs
• The new Mining Strategy released last month is focused on encouraging foreign investors
• Main minerals in Saudi are: Gold, Zinc, Copper, Phosphate, Bauxite, and Aluminum
• The Saudi mining sector is in need of training, mineral processing technology, equipment and
proven expertise to develop mineral-based manufacturing
SAUDI ARABIA MINING SECTOR
4Saudi & Turkey Mining Webinar
SAUDI ARABIA RESOURCE DEPOSITS
5Saudi & Turkey Mining Webinar
Mining Industry in The Kingdom of Saudi ArabiaPresented By
Meshary AlALI
Introduction
Golden Compass Mining and Geological Consultancy Company GCMGC is a leading Saudi firm offering technical exploration in geology, drilling, and mining operation.
GC brings significant experience in exploration, geochemistry, geology, metallurgy, mine engineering, backfill, ventilation, feasibility studies, strategy, optimization, technical audits, appraisals, expert report.
Saudi Arabia possesses more mineral resources than any other country in the Gulf region. The soil in
Saudi Arabia is rich in gold, copper, phosphate, and a wide array of industrial minerals. Development
of the mining sector therefore occupies a prominent position in Saudi Arabia’s program of
diversification away from hydrocarbons. In fact, Saudi Arabia hopes to transform its nascent mining
industry into the “third pillar” of the Saudi economy after oil and petrochemicals. To reach this goal,
the Saudi Government’s strategy includes establishing industries for extracting and processing the
minerals, developing the transportation infrastructure to make the minerals accessible for
processing, and streamlining procedures for the export of minerals and mineral-derived products.
Meeting these objectives will require a significant amount of financial and capital investment.
Accordingly, the Saudi Government has earmarked an estimated $11.9 billion (SR44.63 billion) for
mining and mineral development through 2020.. Significantly, non-oil mineral activity in Saudi Arabia
is expected to grow at a rate of up to 10 percent.
Mining in Saudi Arabia
Mining Companies Activities in Saudi Arabia
The Saudi Government established (Ma’aden) as a catalyst for private investment in the
mining sector in 1997; Ma’aden has adopted an aggressive exploration and mineral
exploitation program, in 2004, the Saudi Government approved the initial steps to privatize
Ma’aden.
Ma’aden has thus far completed the restructuring of its precious metals unit and is
currently in the process of creating individual companies for its gold, industrial minerals,
phosphate, and aluminum interests.
Saudi Arabia is the largest gold producer in the Middle East with a production estimated to reach 256
Koz in 2018. Al Masane Al Khobra (Trecora Resources) Company has started production of zinc, gold,
copper and silver from a mine in Najran province (around 700,000 tonnes), 640 kilometres southeast of
Jeddah. Ore will be taken by road, 414 kilometres to Jazan on the Red Sea for shipment, initially to
smelters and refineries in Europe and the Far East. Zinc will be processed at facilities to be developed in
Yanbu. Australia’s Perth-based Alara Resources signed a joint venture with Saudi Arabia’s United Arabian
Mining Company (MANAJEM) in October 2012, for a feasibility study of zinc and copper project at
Khnaiguiyah and adjacent sites at Mutiyah and Umm Hijja. The venture, located 200 kilometres west of
Riyadh, is one of the most advanced base metals project in Saudi Arabia. A feasibility study undertaken
by MANAJEM targets a production of 55,000 tonnes of zinc per year over a ten year period, using open
pit mining methods. Ma’aden is looking to exploit magnesite deposits at Zarghat, 700 kilometres
northeast of Jeddah. The raw material will be processed at a calcining and fusion plant to be built on the
Red Sea to produce 20,000 tonnes a year of electro-fused magnesia, which is used to line furnaces. The
company has already begun initial production of caustic calcined magnesia at its processing plant in a
manufacturing complex, 17 kilometres southwest of Medina. The plant uses ore produced from the Al
Ghazalah mine, 350 kilometres northeast of Hail.
0.00
50,000.00
100,000.00
150,000.00
200,000.00
250,000.00
300,000.00
350,000.00
400,000.00
450,000.00
500,000.00
2022 Gold Production2016 Gold Production
Series1
0.00
200,000.00
400,000.00
600,000.00
800,000.00
1,000,000.00
1,200,000.00
1,400,000.00
1,600,000.00
1,800,000.00
Aluminium 2017Aluminium 2012
0
2000000
4000000
6000000
8000000
10000000
12000000
14000000
16000000
Phosphate Production
2022
Phosphate Production
2017
Mine Start-up Developer Mine & process
Mahd 1988 CGF& Ma’aden CIG, Flotation, CIL
Sukhaybarat 1991 Ma'aden OP, CIL, HL
Al Hajar 2000 Ma'aden OP, HL
Bulghar 2002 Ma'aden OP, HL
Al Amar 2008 Ma'aden UG, Flotation, CIL
Al Masane 2012 AMAK UG, Flotation, CIL
As Suq 2014 Ma'aden OP, HL
Jabal Sayiad 2015 Barrick Gold & Ma’aden UG, Flotation, CIL
Al Duwayhi 2015 Ma'aden UG, Flotation, CIL
Company Activity
The Saudi Arabian Mining Co (Ma’aden) Exploration & Mining
United Arabian Mining Company Mining
Al Masane Al Kobra Mining Company Exploration & Mining
DAHAB Exploration & Mining
Crystal Exploration & Industrial Mining
United Mining Investment (UMCO) Exploration & Industrial Mining
Managem S.A (Dolomite) Exploration & Industrial Mining
Percentage
The Saudi Arabian Mining Co (Ma’aden)
Al Masane Al Kobra Mining Company
DAHAB
Crystal
Strengths of the sector
Geological surveys indicate large deposits of economically viable precious metals
and industrial minerals that have not yet been exploited
The Kingdom benefits from access to relatively cheap labor and energy resources
Saudi Arabia’s economy has been proven more resilient than other countries during
the economic downturn
The 2030 national budget is the largest to date, and demonstrates the
government’s commitment to investing in large projects to keep the economy
strong. The Saudi Government offers incentives for foreign and domestic private
investments
GC S.W.O.T Analysis
SWOT analysis provides the basic framework of key challenges facing by the mining
industry to improve business performance.
Mining firms need to focus on futuristic solutions rather than just working on the
existing methodologies. Industry has to focus on pain points and technology can play
a major role in solving these pain points. It is not necessary mining companies has to
develop all required.
Weakness
Risk management
Poor communication across stake holders
Schedule constrains
Regulatory constrains
Business interruption
Current innovation deficit
know how
Strength
Huge minerals resources available
Global policies across industry
Integrated planning
Skilled resources
Sustainability
Operational efficiency
Cost saving
Tax less than 7%
Threats
Energy and water usage
Commodity volatility
Transportation and infrastructures
Less focus in research & development
Import and export of minerals
Local polities
Unstable economy
Resource nationalism
License to operate
Natural disasters
Opportunities
Focus in innovations
Technology development
Capability development
Local joint ventures
Merger and acquisitions
HESC improvement
leadership in Market
Weakness of competition in Local market
Consider It Done
Thank You
TURKISH MINING SECTOR
Ms Tibet Kara
Country Director, Austrade Istanbul
Tamer Gezbul
General Manager, Invictus Madencilik, Istanbul, Turkey
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TURKEY MINING OVERVIEW
• The mining industry has seen dramatic growth, however is in its infancy
• Driven by a net energy and infrastructure commodities deficit, the development of the natural resources sector is key priority for the Turkish Government.
• New liberalised investment environment, large investment/tax incentives - junior mining territory
• Large untapped resource potential - 50 different minerals & metals in economically viable quantities (the largest gold producer in Europe)
• Turkish Coal production (85Mt per annum) comes from 33 lignite and 3 major hard coal basins, with others unexploited
• At least 40 per cent of Turkey’s prospective area is not yet explored and only at shallow depths where exploration exists
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1991-2005: Total coal drilling
about 71.238 m.
2005-2016: Total coal drilling increased to 1.839.718 m
Total Coal Resource:
18,77 Billion
TonsHard
Coal, 1.5 7%
Lignite, 17.27, 93.0%
COAL IN TURKEY
26Metin AKTAN, PhD Cand.
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CHANGES IN THE LAST 12 MONTHS– PUBLIC INSTITUTIONS
• The government transferred 203 million tons of coal reserves to private companies in Soma Region. (Demir Export, Imbat, Fernas and Polyak are the main private companies)
• The General Directorate of Mining Affairs (MAPEG) announced 1100 new mining license tenders in August 2019.
• The General Directorate of Mineral Research and Exploration (MTA)’s drilling reached to 2.5 million meters.
• Turkish Mining industry was represented with a pavilion in PDAC 2019
• MTA also took first step for mineral exploration works abroad and set up MTA Tashkent Mining in Uzbekistan
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CHANGES IN THE LAST 12 MONTHS– PRIVATE COMPANIES
• Koza Gold’s Revenues Increased by 129% in first quarter of 2019
• The biggest investment in eastern Turkey: Mazıdağı metal recovery and integrated fertilizer facilities by Cengiz Holding
• Tumad is operational at Lapseki (taken over from Chesser Resources ) project and the Ivrindi project in Balikesir is at the feasibility stage.
› Turkish companies are also active internationally
–Yılmaden Holding signed memorandum of understanding for Qazaq Soda facility to be established in Taraz, Kazakhstan
–Rönesans Holding started construction of the world’s third largest
undeveloped copper mine in Russia
–Turkish Investor Sintek is in talks to build copper smelter to the largest copper deposit of Romania
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TURKEY: OPPORTUNITIES
• Turkish industry requesting Australian expertise in the following areas:
• Safety: products, services including practical training that improves
safety in mines
• Regulatory Framework and Standards: development of
regulations and research to comply with international standards
such as Jorc
• Productivity: mine management, blasting operations, modern
exploration techniques, mine project development
• Coal Gas Management: UCG, CBM, extraction and CTL, GTL
process
• Environmental: low emissions technologies, mine environmental
studies particularly for gold mines, social impact studies
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KEY MINING EVENTS IN 2019-2020
Date Event
23-26 Oct 2019
MINEX, Izmir Mining, Natural Resources & Technologies Fair,
Izmir, Turkey
29-31 Oct 2019 Turkish delegation visit to IMARC, Melbourne, Australia
2-3 Apr 2020 International Coal Congress, Zonguldak, Turkey
1-4 Dec 2020 4th Mine Safety Conference, Istanbul, Turkey
10-13 Dec 2020 Mining Turkey Exhibition, Istanbul, Turkey
TURKISH MINING SECTOR
Tamer Gezbul
Board Member,
Invictus Mining Co., Turkey
+90.530.1133220
Independent Consultant,Mineral Exploration, Mining and Cement/Aggregates
+90.532.2423843
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MAIN TOPICS
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•Turkey is located at one of the most prolific metallogenic belts in the world
and still has great potential for new discoveries.
•TETHYAN BELT (Western Segment)
•Turkey has great varieties of industrial minerals and natural stones with
large volumes of production capacities beside has a leading role in cement
manufacturing and aggregates production.
•Environmental issues related to mining and industrial applications are
becoming more important in Turkey and surrounding countries in Tethyan
Belt.
• Turkey could be a “hub” for Australian companies within the belt, starting
from South-Eastern Europe countries, for developments and operations in
mining and industrial related issues.
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8
8 Sungun: 450Mt @ 0.74%Cu
0 Km 1000
N
1
1 Majdanpek: 1000 Mt @ 0.6%Cu, 0.3g/tAu
Borska Reka: 403 Mt @ 0.7%Cu, 0.3g/tAu
Veliki Krivelj: 750 Mt @ 0.44%Cu
2
2 Rosia Montana: 14 Moz Au
3
3
3
Chelopech: 4Moz Au
4
4 Skouries: 568Mt @ 0.35%Cu, 0.47g/tAu
Olympias: 3.3Moz Au
5
5 Kişladağ: 10.3 Moz Au
6
Çöpler: 4.6 Moz Au6
7
7 Cevizlidere 446Mt @ 0.4%Cu, 0.1 g/t Au
9
9 Sari Gunay: 10Moz Au
10
10 Sar Cheshmeh: 1200Mt @ 0.7% Cu
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11 Saindak: 440 Mt @ 0.41%Cu, 0.5g/t Au
12
12 Reko Diq: 730 Mt @ 0.64% Cu, 0.4g/t Au
30° 60°
30°
40°
±1Moz Au
Bor
Rosia Montana
Çöpler
Cevizlidere
Sarı Gunay
Sar ChesmehReko Dıq
Kişladağ8
Sungun
Tethyan Belt – Western Segment with known metallic deposits
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METALLIC MINERAL DEPOSITS AND TYPES OF TURKEY
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INVICTUS MINING CO. GOLD PROJECT
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Active Gold Mine
Active Gold Mine
Project Area
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CEMENT
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CEMENT
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SUSTAINABILITY
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AGGREGATES
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•Total mining production in Turkey is around 770 million tons and aggregates
production covers 470 million tons, ranking first.
•Total mining production economical value in Turkey is around USD 6,6 billion and
aggregates production has USD1,3 billion value, ranking third after marble and
production values.
•There are around 1.000 aggregates production companies in Turkey.
•Aggregates industry has a direct working force of 25.000 people.
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NATURAL STONES
• In terms of natural stones, particularly marble, Turkey has rich resources
since it is located in the Alpine orogenic belt.
• Total natural stone reserves including proven, likely and possible
reserves are about 5,2 billion m3 – 14 billion m3 tons, almost 33% of
world total natural stone reserves.
• It is estimated to be able to meet the world’s natural stone need for 80
years.
• Turkey is producing various kinds of natural stones like marble, granite,
onyx, basalt, conglomerate, andesite, breccia, slate, diabase and
travertine.
• Turkey’s natural stones have excellent quality and exclusive due to great
variety of colors and patterns.
• Processing industry has been developed over the years to meet world’s
demand and standarts.
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INDUSTRIAL MINERALS
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INDUSTRIAL MINERALS
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ENVIRONMENTAL ISSUES
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•Quarry rehabilitation
•Clean-up technologies, including cyanide
•Metal extraction techniques from old mine dumps and tailings
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CONCLUSIONS
• NEW BUSINESS SET-UP
› Turkey is a “hub” for any potential direct investment and technical aspects in
mining and industrial applications within Tethyan Belt. Regulations is more
promising for investors and business development.
• EXPLORATION / INVESTMENT
› Turkey has more unearthed reserve potential of metal and industrial minerals
with natural stones within a very complicated geological setting.
• TECHNOLOGY
› Such as cement manufacturing including aggregates production with their
vast capacity in world standarts is helping to open new doors for both
technology and environmental issues.
• PARTNERSHIP / REGIONAL FORCES
› Turkey has numerous engineering companies which have international
capacities and could well be in touch for “cost effective solutions”.
› Please visit Mining Turkey, mining and earth sciences magazine,
www.miningturkeymag.com
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THANK YOU
QUESTION & ANSWER SESSION
Contact Information:
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