Could you give an overview of Tümad’s İvrindi and Lapseki projects?

Tümad has mineral exploitation licenses of 7,400 ha for the Balıkesir Ivrindi project, which is now at investment stage and 1500 ha for the Canakkale Lapseki project. Based on the feasibility studies, Ivrindi has 600,000 oz. of gold and Lapseki has 400,000 oz. Project financing for both projects has been completed, led by the EBRD and two Turkish banks, Akbank and Türkiye Cumhuriyeti Ziraat Bankası, and we managed to secure an approximately US$400 million credit facility.

We are now in production at our Lapseki project, which is a low sulfidation vein system, acquired from Australian company Chesser Resources in 2014. From November 2014 to end of December 2017, we completed the environmental impact assessment, all permitting (such as forestry and construction), detailed feasibility, financing and construction and started pouring gold. This should stand as a message to potential domestic or foreign investors of what can be achieved in a short time period. Permitting need not be the main barrier, provided it is managed well.

How did Tümad succeed in implementing the Lapseki project whilst other projects have been delayed?

The number one reason is open and sincere communication with the government through regular meetings with them to give presentations and answer questions, as well as with the locals. It was important to show our intentions and vision clearly about using the highest available standards and gaining a social license to operate. It is a real team effort and am proud of being a part of this team – it has been a phenomenal achievement.

We also organized trips for the locals to the Bergama gold mine and Efemçukuru gold mine. Bergama is a very sensitive area due to the existence of high quality agricultural production there, such as olives, as well as seven or eight villages and the highway to Izmir being close. Therefore, it is a good example study on the environmental impact of gold mines, which is none. There is a conventional tailings dam with very low concentrations of cyanide. So, once we took people there, it helped a lot. 

Why do companies like Tümad join the International Cyanide Management Code?

This helps show people how serious a company is about managing cyanide, which is an easy to manage chemical. Therefore, by having this code it will give us more confidence in moving the project forward.

EBRD’s financing for the two projects depends on a comprehensive CSR program. Could you tell us about the benefits the program will bring to the local youth?

We have a policy to employ young people, and Tümad (part of Nurol Holdings) will be the sponsor of three high schools in different parts of Turkey focused on mineral resources and renewable energy. The graduates of these schools will be employed in the mining and energy sectors, which will help to fulfill the need for technicians. As part of the government’s wider initiative in this area, there will be 12 or 13 high schools like these ones. We have a definite plan to use labor from the nearby villages in our mines, and they will all be well trained from young ages to be able to work long-term at all our projects.

How does Tümad intend to expand its portfolio of projects?

Tümad has a highly experienced and capable exploration team which will be seeking new opportunities. We believe that Turkey is still an underexplored country and we are dedicated to finding more interesting properties. There will be upcoming auctions for mineral tenements in a few months. The MTA has a 2 million meter drilling target for this year, on top of the target it achieved for 1 million meters last year, so there will be auctions of the grounds resulted from these efforts with decent work and possibly resource on them, such as coal, gold and base metals.

Plus, we have some existing tenements in northern and western Turkey. Our whole crew has been focused on our two main projects but very soon, we will distribute them to new tenements so they can find new İvrindis and Lapsekis. Also, we want to explore opportunities abroad such as in ex-CIS countries, the Balkans and Africa, although, for now, our focus is Turkey.

Is Tümad considering diversifying from gold projects to base metals?

Yes, but it depends on what commodity is “shining” in the future. Now it is gold and for a foreseeable future it seems to be so. In the long-term, our vision is to become one of the “best” producers in the world. In the short-term, we aim to produce 150,000 oz/y. We will evaluate what expansions we can make in our existing gold mines, as well as start development programs at existing licenses. 

We could also diversify our focus to specialty metals like lithium, cobalt and nickel. Nurol Holding also has technology companies in its portfolio so we may develop end-product oriented business models starting from the extraction of raw material/ mineral commodities in the future.