OYAK, one of Ermaden's Mining Metallurgy Companies, is commencing construction activities for a pelletizing investment valued at approximately $550 million at the iron mine site in Bingöl-Avnik.
Explorations using drilling techniques have identified a potential of around 250-300 million tons of magnetite iron ore in the region, with 80 percent of the drilling already completed. To process this resource and integrate it into the Turkish economy, mobilization efforts have begun on-site.
Süleyman Savaş Erdem, General Manager of OYAK, stated that there is enough iron ore in the region to last for 30-35 years. He remarked, “This strategic investment by Erdemir will mark a significant step in backward integration, greatly reducing foreign dependency on crucial raw materials.”
Through intensive reserve exploration and development work, Ermaden identified a magnetite iron ore potential of around 250 million tons in the Bingöl-Avnik investment area, where 80 percent of the drilling was completed in 2023. Following this significant exploration effort, Ermaden initiated the mobilization phase of the investment and commenced construction activities.
Utilizing Ermaden's mining expertise, the facility to be established will enable Erdemir, an OYAK Group Company and Türkiye's largest iron ore producer, to fulfill a substantial portion of its needs from national and domestic resources.
Will reduce imports and create value for the economy
Erdem highlighted the reduction in imports and the creation of economic value as key outcomes of this investment and told that with this investment, Erdemir's reliance on foreign pellets, a critical raw material, will be significantly diminished, while contributing to employment in the region. Erdem provided the following information:
“It was estimated that there was a reserve of 15-20 million tons in Bingöl. We conducted the most extensive drilling work in the history of the Republic in Bingöl, revealing approximately 250-300 million tons of magnetite iron ore reserves—sufficient for the next 30 to 35 years. Establishing a self-sufficient reserve structure in pellet production is vital. With this strategic investment to be made in the region, Erdemir will take a big step in backward integration and will significantly reduce foreign dependency in its most important raw material item. During the construction phase, the facility is expected to employ nearly 2,000 people, with approximately 1,000 jobs created once operational. Following the completion of the Bingöl Avnik Pelletizing Plant, Erdemir aims to increase its self-sufficiency rate in pellets from 25-30 percent to 80-85 percent, and in total ferrous raw materials from 15-20 percent to 40-45 percent.”
A milestone for the industry
The plant, which will increase Ermaden's raw material supply security and self-sufficiency in steel production, is also expected to contribute to the domestic economy by reducing the use of imported pellets. With the high profitability to be achieved, the pelletizing plant will mitigate the effects of trade quotas, emission trading systems, commodity crises and supply chain disruptions that have deeply affected the steel industry in recent years, and will also contribute to the competitiveness and sustainability of the group.
