Mining Licenses in Turkey: A Strategic Legal Guide for Foreign Investors

Turkey’s geological position on the Tethyan-Eurasian Metallogenic Belt makes it a prime destination for global mining giants. From gold and copper to boron and rare earth elements, the potential is vast. However, the legal landscape governing mining licenses in Turkey is highly regulated by the Mining Law (No. 3213) and overseen by the General Directorate of Mining and Petroleum Affairs (MAPEG). For a foreign investor, understanding the “license security” and the procedural prerequisites is the first step toward a successful operation.

1. The Legal Requirement: Local Incorporation

The most crucial point for international investors is that mining licenses cannot be held directly by foreign individuals or foreign-domiciled legal entities.

• The Solution: Foreign investors must establish a company in Turkey under the Turkish Commercial Code.
• Equity Status: This local company can be 100% foreign-owned. Once incorporated, this Turkish entity has the same rights as any local company to apply for, hold, and operate mining licenses.

2. Classification of Mines

Under Turkish law, minerals are divided into five main groups, each with different licensing requirements.

• Group I & II: Sand, gravel, and natural stones (Marble, granite).
• Group III: Salts and gases found in water.
• Group IV: The most attractive group for international investors, including gold, silver, copper, iron, and lithium.
• Group V: Rare earth elements and gemstones.

3. The Lifecycle of Mining Licenses

The Turkish licensing system follows a structured path designed to ensure that the land is being actively explored and utilized:

A. Exploration License (Arama Ruhsatı)

The journey begins with an exploration license. This allows the holder to conduct geological mapping, sampling, and drilling.

• Duration: Usually 7 years for Group IV minerals (divided into pre-exploration, general exploration, and detailed exploration periods).
• Obligation: The holder must submit annual exploration reports to MAPEG to keep the license active.

B. Operation License (İşletme Ruhsatı)

Once a mineral reserve is proven, the holder must apply for an operation license before the exploration period ends.

• Prerequisites: The investor must provide a detailed “Operating Project” and a “Feasibility Study.”
• Duration: Typically granted for 10 to 60 years, depending on the reserve’s life, and can be extended further.

4. Permits: The “Invisible” Barrier

Securing mining licenses is only half the battle. To begin physical work, a “Mining Operation Permit” (İşletme İzni) is required, which depends on obtaining several secondary permits:

• EIA (Environmental Impact Assessment): A “Positive” or “Not Required” certificate from the Ministry of Environment.
• Forestry Permits: Since many mineral deposits are in forested areas, the Ministry of Agriculture and Forestry must grant usage rights.
• Workplace Opening and Operation License (GSM): Issued by local administrative authorities.

5. Transfer and Collateral of Licenses

Mining licenses in Turkey are considered valuable assets and can be transferred, sold, or inherited, provided MAPEG approves the transferee’s qualifications.

• Financing: Licenses can be used as collateral for bank loans (Mining Mortgages). This is a vital tool for foreign investors seeking project finance from international lenders like the IFC or EBRD.

6. Royalties and Financial Obligations (Devlet Hakkı)

The Turkish State remains the ultimate owner of all minerals. License holders must pay an annual royalty (Devlet Hakkı) based on the gross sales of the extracted ore.

• Incentives: For certain minerals processed in Turkey (adding value within the country), the government offers a 50% discount on the state royalty. This is a significant incentive for investors looking to build processing plants alongside their mines.

7. License Security and Protection

The Mining Law provides strong “License Security.” A license cannot be canceled unless there is a severe breach of the law or the operating project. However, the “use it or lose it” principle applies: if an investor does not perform operations for three consecutive years without a valid reason, the license may be at risk.

Procedural Checklist for Foreign Investors

1. Incorporate in Turkey: Establish a Turkish LLC (Ltd. Şti.) or JSC (A.Ş.).
2. Due Diligence: Perform a thorough search on MAPEG’s “E-Maden” portal to check for existing overlaps or encumbrances on the target land.
3. Tender Participation: MAPEG regularly auctions off “closed areas.” Foreign-owned Turkish companies can bid in these tenders.
4. Local Partnerships: Many foreign investors prefer a “Joint Venture” (JV) with an established local miner who already holds the permits and land rights.

Conclusion

Securing mining licenses in Turkey is a technical process that demands strict compliance with environmental and commercial regulations. However, the clarity of the Mining Law No. 3213 and the predictability of the MAPEG procedures provide a stable foundation for long-term investments. For the 2026-2030 period, Turkey’s focus on “Critical Minerals” (Lithium, Rare Earths) offers an unprecedented window for global mining firms to enter the market.