The Turkish Energy and Natural Resources Ministry has agreed to open seven coal fields to private investors in order to reduce energy imports and the current account deficit, which has been negatively impacted by the fall of in the lira (-40% in 2018). The Turkish Hardcoal Authority has signed agreements with Erdemir Madencilik, TÜMAŞ and Emsa Enerji, while the Directorate of Turkish Coal signed agreements with İmbat Madencilik, FERNAS, Yapı-Tek and Koç Holding’s Demir Export for coal fields operating rights. A new model for the transfer of coal licenses from state-run companies to the private sector will be set up with the aim to use new technology and more efficient extraction methods and increase domestic coal production.
With the licenses transfer to the private sector, Turkey hopes to generate US$12bn in total revenue of which US$3.5bn in public revenue, which would halve annual imported coal costs. Upcoming investments are expected to increase the domestic coal production by an additional 19 Mt. However, no time scale has been given so far.
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