What is the Mining Sector?

The mining sector encompasses the entire range of technical methods related to the exploration, extraction, and processing of mineral ores found underground. The ore found in the Earth's crust provides industrial raw materials, economic natural resources such as coal and petroleum.

The Status of the Mining Sector in Turkey and the World

The "Mining" sector, which has an indispensable place in human and societal life, has been one of the most important factors in enabling developed countries to reach the technology and wealth levels they possess throughout history. The mining sector is positioned as one of the two main production areas that meet the raw material needs of societies, especially alongside the agricultural sector.

Currently, approximately 90 types of minerals are produced worldwide. This rate is about 60 in our country, with production of 60 different types of minerals. According to MTA data, Turkey ranks 28th among 132 countries in the world in terms of total mineral production value, while it ranks 10th in terms of mineral diversity. Our country is rich in energy raw materials, especially industrial raw materials, certain metallic minerals, geothermal resources, and lignite. 2.5% of the world's industrial raw material reserves are located in our country. These account for 1% of coal reserves; 0.8% of geothermal potential; and 0.4% of metallic mineral reserves. Among the minerals rich in our country, boron minerals, which constitute 72% of the world's reserves, are at the top.

As much as they have significant shares in world mineral reserves, the leading countries actively participating in world mineral production include the USA, Canada, China, Australia, South Africa, and Russia. In world trade, non-ferrous metals, crude oil, and industrial minerals hold great importance in terms of export values among mining products. When examining global trade figures, it is predicted that the use of traditional metals such as steel, lead, copper, and tin is decreasing, while the use of high-tech materials, such as advanced ceramic materials and plastics and polymer-based materials, is increasing and will continue to rise in the coming periods.

Leading Companies in the Mining Sector

1. What Are the General Supports for the Mining Sector?

There are various supports provided by KOSGEB, TÜBİTAK, and the Ministry of Commerce aimed at the mining sector. The supports provided for the mining sector are divided into two categories: project-based and general supports. The details of the supports provided for the mining sector are outlined below.

TÜBİTAK Project-Based Supports

A) TÜBİTAK 1501 - Industrial R&D Projects Support Program Under the 1501-Industrial R&D Support Program, projects are supported that are conducted in the scope of the innovation definition regarding the production of a new product, the development and improvement of an existing product, increasing product quality or standards, or developing new techniques with cost-reducing attributes and new production technologies. The support rate of the program is applied at 75%.

*There is no budget limit.
*Feasibility is required for investments over 5 million.

B) TÜBİTAK - 1507 - SME R&D Startup Support Program Announcement
The supports provided under the 1501 Industrial R&D Support Program aim to support project-based research technology development studies and innovation activities of Small and Medium-Sized Enterprises (SMEs).

*Applicable for projects up to 1,200,000 TL.

KOSGEB Project-Based Supports

A) KOSGEB Technology Investment Program
https://odsdanismanlik.com/tr/kosgeb-kobi-teknoyatirim-destek-programi/

B) KOSGEB Overseas Market Program
https://odsdanismanlik.com/tr/kosgeb-yurt-disi-pazar-destek-programi/

C) KOSGEB R&D Product Development Program
https://odsdanismanlik.com/tr/kosgeb-arge-urge-ve-inovasyon-destek-programi/

KOSGEB General Supports

For detailed information; https://odsdanismanlik.com/tr/hibe-ve-destek-yonetimi-danismanligi/

What Sectors Does KOSGEB Support for the Mining Sector?

Ministry of Commerce Project-Based Supports

A) Global Supply Chain (GSC) Project
Support Amount: 15,000,000 TL
Support Rate: 50%
Support Duration: 2 Years

Which Sectors Can the Global Supply Chain (GSC) Support Project Be Implemented In?
• Mining and Metal
• Chemical products
• Automotive
• Machinery • Aerospace/Aeronautics
• Electricity/Electronics
Other sectors may also be evaluated if they meet the conditions.

What Items Will Be Supported Within the Scope of the Global Supply Chain (GSC)?
• Machinery, equipment
• Software acquisition
• Training, consultancy
• Certification, testing analysis, and product validation expenses
For detailed information; https://odsdanismanlik.com/tr/ticaret-bakanligi-kuresel-tedarik-zinciri-programi/

B) Design Product Development Project
Support Amount: 5,000,000 TL
Support Rate: 50%
Support Duration: 3 Years

Which Sectors Can the Design Product Development Support Project Be Implemented In?
• Design firms
• Design offices
• Cooperative organizations
• Firms engaged in commercial and industrial activities

What Items Will Be Supported Within the Scope of the Design Product Development Support?
• Equipment, Tools, material, and software
• Membership of the website
• Personnel recruitment (designer, modelist, engineer)
For detailed information; https://odsdanismanlik.com/tr/tc-ticaret-bakanligi-tasarim-ve-urun-gelistirme-programi/

Ministry of Commerce General Supports

• Support for Market Entry Documents -4,000,000 TL (50%)
• Overseas Market Research Support-100,000 TL per trip
• Support for Participation in Domestic and International Fairs (including upper limit)
• Overseas Promotion Support 4,000,000 TL 50%
• Overseas Trademark Registration Support 750,000 TL (50%)
• Overseas Unit Support 2,000,000 TL (50%)
• Support for Preparing Market Entry Projects 200,000 TL (50%)
• Support for the Purchase of Brands Belonging to Foreign Companies and Foreign-Based Companies in Turkey 3,000,000 TL 50%
For detailed information; https://odsdanismanlik.com/tr/hibe-ve-destek-yonetimi-danismanligi/

2. Investment Incentives for the Mining Sector

What Are the Support Elements for the Mining Sector?

Who Can Benefit from Supports Aimed at the Mining Sector?

• Real persons, ordinary partnerships, capital companies, unions, cooperatives, joint ventures,
• Public institutions and organizations,
• Professional organizations of public entities and universities,
• Associations and foundations,
• Branches of foreign companies abroad can benefit from the incentives in Turkey. Also, foreign individuals or companies established by foreign companies in Turkey can benefit from the incentives. Companies established in Turkey with 100% foreign capital or partially foreign partners also benefit from the new incentive system.

What Are the Minimum Investment Amounts for the Mining Sector?

• 3 million TL in Regions I and II
• 1 million 500 thousand TL in Regions III, IV, V, and VI.
Note: Excluding the 6th region, Group I minerals and gravel investments and mineral extraction and/or processing investments to be carried out in Istanbul are not eligible for regional supports.

Regions;

How Can ODS Help You with Mining Incentives Consulting?

With our experience in the sector and our expert team, we strive to create the most appropriate benefits for your company. For this, under the incentive consulting we provide to the companies in the sector, we undertake all processes from company analysis to project writing, project management to the necessary revision processes to get your project approved.