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) mines.
  • 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 ceased. 

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.