Turkiye’s Erdemir discovers 250 million tons of ore reserves in Bingöl province

Proven reserves will satisfy the company's raw material needs for 30-35 years

Erdemir, the largest integrated steel producer in Türkiye, has discovered magnetite iron ore reserves of 250-300 million tons at one of its iron ore mines in Avnik, Bingöl province. The company has also started construction of a pelletizing plant in the area. This is reported by S&P Global.

According to Suleyman Savas Erdem, the company’s CEO, these reserves will cover the company’s iron ore needs for 30-35 years. In addition, with the completion of the investment in the pelletizing plant, Erdemir’s dependence on pellets imports will decrease, as the level of self-sufficiency in this material will reach 80-85% from 25-30%.

«The investment in the pelletizing plant, which will mitigate the negative effects of trade quotas, the emissions trading system, the raw materials crisis and supply chain disruptions through its high profitability, will also contribute to the company’s competitiveness and sustainability,» Erdem said.

Investments in the 3 million tons/year plant will amount to $550 million, and the company has not specified the date of its launch. According to the Turkish Ekonomist, the construction will employ about 2,000 people and 1,000 people when the plant starts operating.

As GMK Center reported earlier, in 2023, Türkiye reduced iron ore imports by 4% compared to 2022, to 9.58 million tons. This decline corresponds to a drop in steel production by Turkish steelmakers – by 4% y/y, to 33.7 million tons. Imports of iron ore from Ukraine last year amounted to about 600 thousand tons.