IDEAS home Printed from https://ideas.repec.org/a/eee/jrpoli/v75y2022ics0301420721005146.html
   My bibliography  Save this article

Are the compensations given to mining enterprises due to the overlapping with other investments in Turkey enough? Expectations of compensation for profit deprivation

Author

Listed:
  • Yıldız, Taşkın Deniz

Abstract

Generally, there can be very high differences among the alternative investment costs of the other activity which overlaps with mining. This situation can oblige the overlapping of the alternative investments of these activities that overlap with mining in the available location with mining sites due to not being able to be preferred. There is no mistake in shutting down mining activities completely or partially in these kinds of investment overlaps. However, are mining operations, whose activities have been finalized due to not being foreseen beforehand and who experience investment loss, given compensation for profit deprivation and investment losses? Are the investment costs of mining operations covered precisely? In these kinds of investment overlaps in Turkey, particularly license and land use fees of mining enterprises are not paid, compensation for profit deprivation are not paid by considering proved mineral reserve, and investment costs are given only to a limited extent. This situation occurred e.g. in Izmir as a result of the overlapping of 15 mining operations with a highway investment project route. The expectation of mining enterprises in Turkey and the opinion of doctrine considering Turkish Constitution and legislative provisions are that all mining investment losses to met completely and compensation for profit deprivation to met to a certain extent. In the answers given to the question asked for mining enterprises through SurveyMonkey program in 2018, most of the enterprises request that compensation for lost profit is given from the proved reserved to a certain extent due to mineral reserve losses. Along with the available investment costs foreseen in Turkish Mining Regulation, several times more of six-month operating costs determined as profit deprivation in nationalizations can be given to all mining enterprises whose activities are terminated in these investment overlaps. Or, a different method can be applied in the calculation of compensation for profit deprivation. In this method, it is suggested that a new calculation for compensation for profit deprivation shall be made by considering pit sale prices and proved reserves. There are distinctions made as the operations -whose proved reserves are determined according to UMREK, The operations whose proved reserves are not determined according to UMREK (or whose proved reserves determined in mining operating projects), “mining enterprise whose proved mineral reserve is determined according to UMREK (congruent with CRIRSCO), or not determined according to UMREK (considered mining operating project in Turkey), “open-pit or underground mining operation” and “mining operation providing or not providing additional added value by processing the minerals in their country and facilities.” Considering these differences, it was suggested to apply different compensation rates.

Suggested Citation

  • Yıldız, Taşkın Deniz, 2022. "Are the compensations given to mining enterprises due to the overlapping with other investments in Turkey enough? Expectations of compensation for profit deprivation," Resources Policy, Elsevier, vol. 75(C).
    • Handle: RePEc:eee:jrpoli:v:75:y:2022:i:c:s0301420721005146
    DOI: 10.1016/j.resourpol.2021.102507
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301420721005146
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.resourpol.2021.102507?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Yıldız, Taşkın Deniz & Kural, Orhan, 2020. "The effects of the mining operation activities permit process on the mining sector in Turkey," Resources Policy, Elsevier, vol. 69(C).
    2. Yıldırım, Seda & Gedikli, Ayfer & Erdoğan, Seyfettin & Yıldırım, Durmuş Çağrı, 2020. "Natural resources rents-financial development nexus: Evidence from sixteen developing countries," Resources Policy, Elsevier, vol. 68(C).
    3. Guj, Pietro & Chandra, Atul, 2019. "Comparing different real option valuation approaches as applied to a copper mine," Resources Policy, Elsevier, vol. 61(C), pages 180-189.
    4. Gómez-Márquez, Iván & Alejano, Leandro R. & García Bastante, Fernando, 2011. "Mining compatibility with other projects in Spain: Solutions and benefits," Resources Policy, Elsevier, vol. 36(1), pages 22-29, March.
    5. Yuldashev, Farhod & Sahin, Bahadir, 2016. "The political economy of mineral resource use: The case of Kyrgyzstan," Resources Policy, Elsevier, vol. 49(C), pages 266-272.
    6. Groten, Eric & van Rensburg, W. C. J, 1983. "Barriers to investment in third world mineral industries," Resources Policy, Elsevier, vol. 9(1), pages 33-42, March.
    7. Marboe, Irmgard, 2017. "Calculation of Compensation and Damages in International Investment Law," OUP Catalogue, Oxford University Press, edition 2, number 9780198749936.
    8. Wrighton, C.E. & Bee, E.J. & Mankelow, J.M., 2014. "The development and implementation of mineral safeguarding policies at national and local levels in the United Kingdom," Resources Policy, Elsevier, vol. 41(C), pages 160-170.
    9. Hazra, Tanmoy & Samanta, Biswajit & Dey, Kaushik, 2019. "Real option valuation of an Indian iron ore deposit through system dynamics model," Resources Policy, Elsevier, vol. 60(C), pages 288-299.
    10. Lagos, Gustavo, 1997. "Developing national mining policies in Chile: 1974-1996," Resources Policy, Elsevier, vol. 23(1-2), pages 51-69, June.
    11. Njowa, G. & Musingwini, C., 2018. "A framework for interfacing mineral asset valuation and financial reporting," Resources Policy, Elsevier, vol. 56(C), pages 3-15.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gałaś, Andrzej & Kot-Niewiadomska, Alicja & Simić, Vladimir & Tost, Michael & Wårell, Linda & Gałaś, Slávka, 2023. "A comparative case-study on social and public administration aspects on mineral deposits safeguarding in chosen European countries," Resources Policy, Elsevier, vol. 85(PB).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Yıldız, Taşkın Deniz, 2022. "Considering the recent increase in license fees in Turkey, how can the negative effect of the fees on the mining operating costs be reduced?," Resources Policy, Elsevier, vol. 77(C).
    2. Chuan-Chuan Ko & Chien-Yu Liu & Zan-Yu Chen & Jing Zhou, 2019. "Sustainable Development Economic Strategy Model for Reducing Carbon Emission by Using Real Options Approach," Sustainability, MDPI, vol. 11(19), pages 1-14, October.
    3. Yıldız, Taşkın Deniz, 2021. "How can the effects of EIA procedures and legislation foreseen for the mining operation activities to mining change positively in Turkey?," Resources Policy, Elsevier, vol. 72(C).
    4. Yıldız, Taşkın Deniz, 2021. "Overlapping of natural stone mining field with high-speed train project in Turkey: Was the economic public benefit evaluation made sufficiently?," Resources Policy, Elsevier, vol. 74(C).
    5. Yıldız, Taşkın Deniz, 2022. "Supervisor fund expectation for the guarantee of salaries in the presence of the effect of permanent supervisor salaries on mining operating costs in Turkey," Resources Policy, Elsevier, vol. 77(C).
    6. Yıldız, Taşkın Deniz, 2021. "Possible effects of mining zone regulation on mining companies in Turkey & evaluation of mining companies," Resources Policy, Elsevier, vol. 71(C).
    7. Yang, Wei & Fang, Nan & Wang, Yaping & Long, Tao & Deng, Sha & Xue, Mengge & Deng, Bo, 2022. "Value evaluation of mining right based on fuzzy real options," Resources Policy, Elsevier, vol. 78(C).
    8. Yıldız, Taşkın Deniz, 2021. "Overlapping of mine sites and highway route in Turkey: Evaluation in terms of mining land use criteria and land-use planning," Land Use Policy, Elsevier, vol. 106(C).
    9. Yıldız, Taşkın Deniz, 2023. "How can shares be increased for indigenous peoples in state rights paid by mining companies? An education incentive through direct contribution to the people," Resources Policy, Elsevier, vol. 85(PA).
    10. Yıldız, Taşkın Deniz, 2022. "How can the state rights be calculated by considering a high share of state right in mining operating costs in Turkey?," Resources Policy, Elsevier, vol. 75(C).
    11. Chi, Mingyuan & Ping, Wang, 2024. "Resources abundant economies and sustainability of economic growth: A novel panel evidence of high resources economies," Resources Policy, Elsevier, vol. 88(C).
    12. Raisa Pérez-Vas & Félix Puime Guillén & Joaquín Enríquez-Díaz, 2021. "Valuation of a Company Producing and Trading Seaweed for Human Consumption: Classical Methods vs. Real Options," IJERPH, MDPI, vol. 18(10), pages 1-13, May.
    13. Liang, Xuefang & Qianqian, Ding & Xiaozhou, Zhu & Ullah, Midrar, 2024. "Asymmetric relationship between natural resources extraction policy and financial development exist? A conflict and comparative analysis between China and US," Resources Policy, Elsevier, vol. 90(C).
    14. Ma, Yechi & Chen, Zhiguo & Shinwari, Riazullah & Khan, Zeeshan, 2021. "Financialization, globalization, and Dutch disease: Is Dutch disease exist for resources rich countries?," Resources Policy, Elsevier, vol. 72(C).
    15. Yıldız, Taşkın Deniz, 2020. "Evaluation of forestland use in mining operation activities in Turkey in terms of sustainable natural resources," Land Use Policy, Elsevier, vol. 96(C).
    16. Devenin, Verónica, 2021. "Collaborative community development in mining regions: The Calama Plus and Creo Antofagasta programs in Chile," Resources Policy, Elsevier, vol. 70(C).
    17. Haslam, Paul Alexander, 2021. "The micro-politics of corporate responsibility: How companies shape protest in communities affected by mining," World Development, Elsevier, vol. 139(C).
    18. Radwanek-Bąk, Barbara & Nieć, Marek, 2015. "Valorization of undeveloped industrial rock deposits in Poland," Resources Policy, Elsevier, vol. 45(C), pages 290-298.
    19. Wei, Xuecheng & Hu, Weihua, 2023. "Revisiting resources curse hypothesis in China: Exploring the asymmetric effect of green investment and green innovation," Resources Policy, Elsevier, vol. 85(PB).
    20. Yang, Xue & Zhang, Peng & Zhao, Zuoxiang & Koondhar, Mansoor Ahmed, 2024. "How disaggregated natural resources rents affect financial development: From the perspective of sustainable development," Resources Policy, Elsevier, vol. 92(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:jrpoli:v:75:y:2022:i:c:s0301420721005146. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/30467 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.