Mining and Quarrying industry

Key market player

Turkiye Petrolleri Anonim Ortakligi (TPAO) was founded in 1954 with the Act 6327. TPAO's main purpose at foundation was exploration, drilling, production, refining and marketing of hydrocarbons for Turkish Government. TPAO continued its integrated operations till 1983. In 1983, with a series of structural reorganization, its mandated was changed to exploration and production of hydrocarbons. TPAO founded a number of companies like PETKIM, TUPRAS and Petrol Ofisi and 14 other enterprises in connected industries. 

In 2017, TPAO produced  69 per cent of the total crude oil and provided 72 per cent of its natural gas produced in Turkey. The average daily production in 2017 was 106,312 petroleum equivalents. A total of 12.3 million barrels of crude oil (average 33,800 barrels/day) and 267 million m3 of natural gas were produced nationwide in the same year. Most of the domestic oil production was provided from TPAO fields in Southeastern Anatolia region and most of the natural gas production was provided from TPAO fields in Western Black Sea and Thrace.

Market share concentration

TurkAnalitik’s three-firm concentration ratio is a measure of market structure and shows the combined market share of the three largest firms in the industry. Market share estimates are based on top three firms’ total revenues divided by the overall industry revenues. TurkAnalitik’s concentration ratios range from 0 to 100 per cent. Perfect competition occurs when all enterprises operating in the industry have equal market share. A concentration ratio between zero per cent to 50 per cent indicates a concentration level that is between perfect competition and oligopoly. Oligopoly in the industry is said to exists when the market share concentration is between 50 per cent to 80 per cent and any concentration level that is between 80 per cent to 100 per cent indicates a state between oligopoly and monopoly.   

Total revenues of the three largest enterprises operating in the Mining and Quarrying industry constitutes about 10 per cent of total industry revenues. This low level of industry concentration indicates that the industry operates somewhere between perfect competition and oligopoly. 

Industry exports

Among the most exported mineral product groups in 2017 was natural stones ranking first with 8.47 million tonnes (2 billion USD in value), followed by metallic ores with 4,88 million tonnes (1.39 billion USD in value). Industrial minerals' exports ranked third with 14.57 millions tonnes  (925.6 million USD in value) and lastly Energy Raw Materials had 113 thousand tonnes (15.7 million USD).   

The marble-travertine raw, roughly chipped or the block was the most exported product in total mining exports in 2017 with 6.12 million tonnes (1.11 billion USD in value), while the processed marble exports amounted to 1,87 million tonnes (795 million USD in value). Zinc Ore was the third largest export product with 765 thousand tonnes (388.3 million USD in value), followed by chrome ore exports of 1.39 million tonnes (344.7 million USD in value). In the same period, borates and concentrates exports amounted to 824.7 thousand tonnes (265 million USD in value), and copper ores exports were 246.3 thousand tonnes (234.7 million USD in value).    

Among the important countries in which sector exports were realized in 2017 was The People's Republic of China ranking first with 38.12 per cent of all exports (1.68 billion USD  in value) destined for it. Sector exports to this country increased by 26.2 per cent in 2017 compared to previous year.