The Amendment Law amended some of the major provisions of the
Mining Law (published in the Official Gazette, dated June 15,
1985 and numbered 18785) including among others: (i)
mine groups and validity terms of the exploration and operation
licenses, (ii) royalty rates, (iii) main
principles of licensing, (iv) terms and conditions
regulating mine lease agreements ("rödövans
sözleşmesi"), (v) sanctions,
and (vi) rules on payment of the license fees.
The main issues and novelties regulated under the Amendment Law
may be summarized as follows:
The Amendment Law reclassifies the mine groups and removes
Group VI that covers radioactive minerals. The Amendment Law also
envisages that existing licenses for Group VI shall be licensed
under Group IV.
It also amends the validity terms of exploration and operation
licenses and foresees a two-year feasibility period following the
detailed exploration period for Group IV (b), (c) and (ç)
Furthermore, the Amendment Law changes the royalty rates for
mine groups and envisages separate royalty rates for some minerals
(e.g. gold, copper, silver, aluminium) within the scope of
the Group IV.
The Amendment Law foresees major amendments as to the licensing
process in accordance with all mine groups excluding Group II (b)
and Group IV mines. Pursuant to the new rules, licenses for Group
II (b) and Group IV mines will be granted through a tender process
in place of the general licensing system as to which mining
licenses are granted by the General Directorate of Mining Affairs
(the "General Directorate").
As per the Amendment Law, mine lease agreements executed
between the license holders and third parties becomes subject to
the approval of the General Directorate. Accordingly, the existing
mine lease agreements shall also be presented to the General
Directorate within a period of three (3) months as of the effective
date of the Amendment Law; otherwise mining activities that are
carried out within the scope of such mine lease agreement shall be
The content of this article is intended to provide a general
guide to the subject matter. Specialist advice should be sought
about your specific circumstances.
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