sait uysal, spil mining ltd. graphite in turkey and its

GRAPHITE IN TURKEY AND ITS POSITION IN Sait UYSAL, Spil Mining Ltd.

EUROPE

www.saituysal.com.trMarch 2012

G hit At GlGraphite At a GlanceThe mineral graphite is one of the allotropes, and pure form of carbon.

Allotropes of carbon are;

- Graphite

Diamond- Diamond

- Coal

Graphite is;

- Excellent HEAT conductor

- Excellent ELECTRICITY conductor

- Heat resistant

- Corrosion resistant

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www.saituysal.com.tr

GRAPHITE TYPESGRAPHITE TYPES

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A li ti b G hit TApplications by Graphite TypeType of GraphiteType of Graphite ApplicationApplication

Synthetic Graphite Friction Materials Energy Materials Powder MetallurgySynthetic Graphite Friction Materials, Energy Materials, Powder Metallurgy, Electrical Components, Carbon Brushes and Parts, Thread Compounds, Drilling Mud Additives, Rubber and Polymer Composites, Packings & Seals.

Natural Graphite

Amorphous Grap. Lubricant Additives, Friction Materials, Pencils, Refractories, Paints Rubber and Polymer Composites Metal Covers ThreadPaints, Rubber and Polymer Composites, Metal Covers, Thread Compounds, Drilling Mud Additives.

Flake Graphite Friction Materials, Energy Materials, Powder Metallurgy, Electrical Components Carbon Brushes and Parts InsulationElectrical Components, Carbon Brushes and Parts, Insulation, Thread Compounds, Drilling Mud Additives, Packings & Seals.

Vein Graphite Energy Materials, Lubricants, Grinding Wheels, PowderMetallurgy Electrical Components Friction Materials PlasticsMetallurgy, Electrical Components, Friction Materials, Plastics, Carbon Brushes and Parts

Source : Mackie Research Capital

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N G hit ’ A li tiNew Graphite’s Applications

Lithium-ion batteries

Fuel cells

Nuclear technologyNuclear technology

Plastics and composite frames (Boeing Co.'s new Dreamliner)

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www.saituysal.com.trSaurce: Byron Capital Market

G hit i T kGraphite in TurkeyMajority of the graphite occurrences in Turkey is mainly “amorphous” type.

A graphite occurrence around Balikesir city (West part of Turkey) has bigger crystalline structure. Most promising, most graphitized and high Carbon contented graphite mineralization explored in Balikesir, Yozgat, Konya, Kastamonu and Adıyaman cities.

Occurrences in other places like Kutahya, Mugla, Bandirma is mostly semi graphite.

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R i T kReserves in Turkey

Place/CityReserve Quantity Average

C%(Tonnes) C%

Yozgat < 100 000 45

Kastamonu Unknown 60

Aydin 150 000 10y

İzmir - Tire – Karamersin 150 000 8

İzmir - Tire – Çeşme 200 000 6

İzmir - Tire – Başköy 150 000 10

I t b l 150 000 30Istanbul 150 000 30

Mersin 500 000 35

Adiyaman Unknown 45

Mugla 510 000 40-70

Kutahya-Oysu 130 000 20

Source : MTA reports (MTA = General Directorate of Minerals Research and ( Ge e a ecto ate o e a s esea c a dExploration)

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G hit Mi li ti M f T kGraphite Mineralizations Map of Turkey

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P d ti i T k 1985 1999Production in Turkey 1985-1999

YearProduction (tonnes)

Consumption (tonnes)Year (tonnes) (tonnes)

1985 ‐ 4.100,001986 3.586,00 4.000,001987 8.900,00 3.400,001988 12 911 00 13 000 00

30.000,00

Production (tonnes) ‐

1988 12.911,00 13.000,001989 11.000,00 12.000,001990 18.712,00 18.712,001991 26.763,00 26.763,001994 5 000 00 25 000*

15.000,00

20.000,00

25.000,00

Production(t )1994 5.000,00 25.000

1995 5.000,00 25.000*1996 5.000,00 25.000*1997 5.000,00 25.000*1998 5.000,00 25.000*

0,00

5.000,00

10.000,00

85 86 87 88 89 90 91 94 95 96 97 98

(tonnes) ‐

998 5 000,00 5 0001999 5.000,00 25.000*

Source: Turkey State Planning Institute, 8th QuinquenniallyDevelopment Plan, 2001

198

198

198

198

198

199

199

199

199

199

199

199

March 2012

www.saituysal.com.tr* = Rounded roughly

P d ti i T k 2003 2009Production in Turkey 2003-2009

Year Production (tonnes)

2003 0,003 000 00

3.500,00

Production (tonnes)

2004 28,00

2005 0,00

2006 0 00 1.500,00

2.000,00

2.500,00

3.000,00

Production0,00

2007 0,00

2008 3.236,00 0,00

500,00

1.000,00

1.500,00(tonnes)

2009 2.400,00

Source: http://www.migem.gov.tr/links/istatistikler/2003_2009_URETIM_%20BILGILERI.mht Migem = Turkish Republic Ministry of Energy and Natural Resources General Directorate of Mining Affairs

March 2012

www.saituysal.com.trMigem = Turkish Republic Ministry of Energy and Natural Resources ‐ General Directorate of Mining Affairs

P d i T kProducers in Turkey- Bilginer Mining Ltd

- Mine in Mugla city

- Underground mine.

After 1992 they were the only graphite producers in Turkey Annual Production was- After 1992 they were the only graphite producers in Turkey. Annual Production was5,000 mt.

- Production stop after 2001

Karabacak Mining LTD (Now Oysu Graphite).

- Mine in Kutahya City

Underground and Open Pit mine- Underground and Open Pit mine

- Installed a flotation plant in 1992

- In 1992 graphite market was collapsed and they stop production.

- Occasionally try to run the facility after 2007

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T k I t f G hitTurkey Import of Graphite

Year Trade Flow Reporter PartnerHS Code

(NaturalGraphite

Trade Value NetWeight (tonnes)Graphite

2000 Import Turkey World 2504 $2.467.855,00 6.087,662001 Import Turkey World 2504 $2.526.441,00 6.430,612002 Import Turkey World 2504 $2.635.532,00 7.010,382003 I T k W ld 2 04 $2 2 0 00 429 342003 Import Turkey World 2504 $2.725.770,00 7.429,342004 Import Turkey World 2504 $3.903.755,00 10.212,252005 Import Turkey World 2504 $5.255.075,00 11.956,332006 Import Turkey World 2504 $4.498.559,00 9.687,78

$2007 Import Turkey World 2504 $5.531.200,00 11.920,362008 Import Turkey World 2504 $9.109.963,00 13.230,362009 Import Turkey World 2504 $4.863.912,00 6.792,962010 Import Turkey World 2504 $8.360.945,00 11.191,00

Source : United Nations Commodity Trade Statistics Database(http://comtrade.un.org/db/dqBasicQueryResults.aspx?cc=2504&px=HS&r=792&y=2000.2001.2002.2003.2004.2005.2006.2007.2008.2009.2010&p=0&rg=1&so=9999)

Source: Turkish Statistical Institute(http://www.tuik.gov.tr/disticaretapp/disticaret_ing.zul?param1=25&param2=0&sitcrev=0&isicrev=0&sayac=5902)

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T k E t f G hitTurkey Export of Graphite

Year Trade Flow Reporter PartnerHS Code

(NaturalGraphite

Trade Value NetWeight (tonnes)Graphite

2000 Export Turkey World 2504 $9.171,00 20,872001 Export Turkey World 2504 $3.547,00 44,712002 Export Turkey World 2504 $3.018,00 41,032003 Export Turkey World 2504 $5 514 00 40 922003 Export Turkey World 2504 $5.514,00 40,922004 Export Turkey World 2504 $6.885,00 6,122005 Export Turkey World 2504 $45.633,00 73,822006 Export Turkey World 2504 $107.541,00 292,252007 Export Turkey World 2504 $180 928 00 471 682007 Export Turkey World 2504 $180.928,00 471,682008 Export Turkey World 2504 $198.479,00 390,302009 Export Turkey World 2504 $188.218,00 256,942010 Export Turkey World 2504 $182.214,00 220,43

Source : United Nations Commodity Trade Statistics Database(http://comtrade.un.org/db/dqBasicQueryResults.aspx?cc=2504&px=HS&r=792&y=2000.2001.2002.2003.2004.2005.2006.2007.2008.2009.2010&p=0&rg=1&so=9999)

Source : Turkish Statistical Institute(http://www.tuik.gov.tr/disticaretapp/disticaret_ing.zul?param1=25&param2=0&sitcrev=0&isicrev=0&sayac=5902)

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EUROPEEUROPE- EU is up to 95% dependent on imports, mainly from China

- recycling is very limited

- EU determined graphite as one of the critical raw material

Main Production

Countries Main EU Import

Sources Import Dependence

(2006)

2007:

Graphite

2008: China 72% India 13% Brazil 7%

2007: China 75% Brazil 8%

Madagascar 3% Canada 3%

95%

Canada 3%

Source : European Union Report of the Ad‐hoc Working Group on defining critical raw materials

March 2012


C iti l t i l t EU l lCritical raw materials at EU level

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E E t f N t l G hitEurope Export of Natural Graphite

Period Trade Flow Reporter Partner Trade Value NetWeight (tonnes)

2007 Export EU-27 World $11,355,239 5,104.84

2008 Export EU-27 World $11 088 802 4 414 252008 Export EU-27 World $11,088,802 4,414.25

2009 Export EU-27 World $8,112,888 4,732.48

2010 Export EU-27 World $9,515,029 4,440.32

March 2012


E I t f N t l G hitEurope Import of Natural Graphite

Period Trade Flow Reporter Partner Trade Value NetWeight (tonnes)

2007 Import EU-27 World $70,385,114 122,663.50

2008 Import EU 27 World $102 595 611 158 653 822008 Import EU-27 World $102,595,611 158,653.82

2009 Import EU-27 World $47,715,833 55,339.15

2010 Import EU-27 World $87,186,397 103,187.26

March 2012


Period Trade Flow Reporter Partner Code Trade Value NetWeightPeriod Trade Flow Reporter Partner Code Trade Value (tonnes)

2007 Import Germany World 2504 $25,577,000 54,629.43




March 2012


C l iConclusionsTurkey has undiscovered, undeveloped graphite potential

Some of the graphite potential areas is promising

New applications also create new graphite demand (extra 500,000 mt by 2020)

Europe depend on Import for graphite very limited graphite potential in Europe and graphiteEurope depend on Import for graphite, very limited graphite potential in Europe, and graphite along with REE and PGM was declared as critical raw material for EU.

China is the main supplier of Europe (75%) and China has now implemented a 20% export duty on graphite along with a 17% VAT and an export licensing system and this createsduty on graphite, along with a 17% VAT and an export licensing system, and this creates supply risks. Europe has to develop new alternative suppliers

Because of its position and closeness to Europe, low operating costs, and promising potentials of undeveloped graphite reserves Turkey could be an alternative supplier forpotentials of undeveloped graphite reserves, Turkey could be an alternative supplier for Europe

March 2012


Thank You!

Sait UYSALManisa/TURKEYManisa/TURKEY


March 2012


sait uysal, spil mining ltd. graphite in turkey and its

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