Energy and Mining

As the population continues to increase with the growth in the world, the demand for energy and mines is increasing. The energy and mining sector, which is the most important production input for total economic growth, continues to be the leader among strategic priorities. Changes in energy and mining costs have significant effects on economic growth, especially in oil-importing developing countries.

There is a demand belt in global energy demand and developing countries are increasing their market share in world energy consumption. In 1990, member states of the Organization for Economic Cooperation and Development (OECD) accounted for about two-thirds of energy demand, while developing countries accounted for less than a third. It is estimated that this distribution will almost completely reverse by 2040, with non-OECD members accounting for two-thirds of demand.
Much of the increase in energy demand is concentrated in developing Asian countries (India, China and Other Asia), where it is fueled by increased well-being, improved living standards and increased per capita energy consumption.

The energy sector is considered to be the locomotive sector in Turkey due to its close relationship with more than one sector. Volatility in exchange rates, increasing cost pressure and rising inflation have had the greatest impact on the Turkish energy sector in recent years. In the last two years, Turkey’s most important issues on the agenda of the energy sector are costs and prices.

While 77 of the 90 mineral types traded in the world are in Turkey, considering that the share of the mining sector in GDP as of the end of 2016 is 1.1%, it is seen that the sector cannot reveal its potential sufficiently. Ranking 28th among 132 countries in the world with its total mineral production value, Turkey ranks 10th in terms of mineral diversity and 74% of the world’s total boron reserves are located in Turkey.