Industry Trend Analysis - Turkey To Be European Outperformer - JUNE 2017

BMI View: Turkey's mining sector will be one of the fastest growing in Europe in the coming years on the back of improvements to its mining regulations, increased government investment and a strong project pipeline. Despite this, the country ' s positive outlook will remain threatened by ongoing political and social unrest .

Turkey's mining sector will be one of Europe's growth bright spots in the coming years as it benefits from increased public and private investment into the sector, an improving regulatory environment and a healthy project pipeline. We forecast the mining sector to grow by a strong average of 6.8% during our forecast period over 2017-2021, faster than all other mining producing countries in Europe, bar Finland.

The domestic mining industry will firstly benefit from the Erdogan government's objective to catapult Turkey's economy into one of the top 10 largest in the world by 2023, resulting in increased investment commitments. Furthermore, reforms to the regulatory framework overseeing mining activities, particularly since 2010, will incentivise foreign interest into the country's mining sector. As a result, Turkey boasts one of the strongest project pipeline's in Europe with up to 10 new projects currently being developed, although risks to our outlook will remain present due to the country's unstable political and social environment. Turkey's Tethyan Metalogenic Belt, which stretches across Asia into the Indian Sub-continent, holds 2.5% of the world's industrial mineral resources and produces approximately 50 different metals and minerals that are commercially viable for production.

Turkey Regionally Outperforming
Select Countries - Mining Industry Value Average Growth 2017-2021 (% y-o-y)
Source: BMI, USGS

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