Turkey is one of the many countries exploring untapped gold reserves. This has become a growing trend all over the world. Tapping into these reserves can help lower a nation’s reliance on imports of precious metals.
The Gold Plans of Turkey
Similar to most countries in the world, Turkey is capable of producing gold. There isn’t enough production to not rely on international imports of bullion, however. Changing that narrative requires an entirely different approach and mindset. Slowly but surely, this plan is coming together in a meaningful manner.
Several surveys have been conducted using innovative technologies. Performing X-Rays with geophysical aerial imaging occurred a few years ago. Ever since, the government has been drilling for at least 1 million meters per year on average. This further confirms Turkey is serious about this venture first and foremost.
Currently, Turkey produces up to 38 tons of gold annually. A more than respectable figure, although the goal is to raise to 100 tons in the next five years. Achieving such an ambitious goal will not be easy, even if vast reserves of gold are discovered. For 2020, despite the COVID-19 setbacks, a target of 44 tons of gold has been mentioned.
So far, the surveys show there are some untapped gold reserves across Turkey. In several locations, new mining ventures have begun popping up. There is still a lot of work to be done over the coming months and years, but the initial progress seems promising.
Ending the Import Reliance
Turkey is currently in an awkward situation where gold is concerned. Despite producing plenty of bullion every year, the country still needs to import 150 tons of gold every single year. This costs up to $12.5 billion, a vast sum of money that is much bigger than the $7 billion earned from domestic gold exports.
Getting rid of such a deficit will require a lot of hard work. Ramping up domestic gold mining efforts is one way to improve the situation. However, one has to wonder if the proposed production targets will be met in the allotted time. More than doubling the national production is incredibly ambitious.
It is also worth noting Turkey’s central bank has seen an increase in gold reserves. This includes gold deposits and gold swapped. An 11.5% increase year-over-year is a good start, especially with a global pandemic wreaking havoc.