Comprehensive Amendments To The Mining Legislation Introduced By Law No. 7554

A. INTRODUCTION

Law No. 7554 on the Amendment of Certain Laws (the "Law"), which was adopted by the Grand National Assembly of Türkiye on 19 July 2025 and published in the Official Gazette dated 24 July 2025, has introduced significant changes to the Mining Law No. 3212. The new regulations encompass a wide range of issues, from mining license procedures to rehabilitation obligations, and from strategic mineral policies to olive grove areas. This article outlines the key innovations brought by the Law.

The amendments introduced by Law No. 7554 aim to strengthen environmental responsibilities within the mining legislation, enhance predictability in licensing and permitting procedures, and clarify policies related to the management of strategic resources. By redefining rehabilitation obligations, updating state royalty calculations, and simplifying permit mechanisms for sensitive areas, the Law seeks to establish a balanced framework between sustainable resource use and investor confidence. Moreover, with specific provisions targeting strategic and critical minerals, a proactive and guiding legal infrastructure is being established to support Türkiye's industrial and energy security.

B. KEY CHANGES INTRODUCED BY THE LAW

1. New Concepts and Definitions

The Law introduces new concepts into the Mining Law, such as "Board," "Rehabilitation," "Rehabilitation Fee Account," and "Collection Office," aiming to ensure administrative processes are conducted more transparently and systematically.

2. Amendments Regarding Operating Licenses

• A 30% reduction has been made in the operating license fee.
• The guarantee rate under the environmental compliance plan has been increased from 50% to 70%.
• A one-year period has been granted for the conversion of letters of guarantee into cash or for cash deposits; otherwise, such amounts shall be transferred to the Rehabilitation Account.
• For existing licenses, the previous legislation shall remain applicable until 1 January 2026.
• Outstanding payments for cancelled licenses shall be collected pursuant to the provisions of Law No. 6183.
• The penalty and license cancellation for production declarations below 30% have been repealed.

3. Rehabilitation Obligations

• The rehabilitation fee has been equated to the license fee, imposing a payment obligation on license holders.
• If the rehabilitation obligation ceases to exist, the unused portion of the fee shall be refunded.
• Follow-up and collection procedures shall be carried out by collection offices.
• In the event of non-compliance by public institutions, activities may be suspended; in the private sector, the General Directorate of Mining and Petroleum Affairs ("MAPEG") shall be authorized to halt production.

4. Innovations in the Permit Process

• MAPEG is now required to seek opinions from relevant institutions for activities within special environmental protection zones and similar areas; if no response is received within the prescribed period, the permit shall be deemed granted.
• Activities in state-owned forests may be conducted without charge for an initial period of 2 years; in the event of transfer or operation, the permit shall become subject to payment.
• If a cultural asset is encountered, activities may only continue with the approval of the Ministry of Culture and Tourism; if activities are halted, investment costs shall be compensated by the public authorities.

5. Updates to the Calculation of State Royalty

• The formulas and tables used for calculation have been updated.
• The average price on the London Metal Exchange and the exchange rate of the Central Bank of the Republic of Türkiye shall be taken as the basis.
• For minerals not traded on an exchange, prices announced by the Ministry of Energy and Natural Resources (the "Ministry") shall apply.

6. Exploration License Procedures and Termination Conditions

• The pre-exploration period is set at 1 year; the general exploration period is 2 years for Group IV minerals and 1 year for others.
• For Group IV minerals, the detailed exploration period is 4 years. If a license application is not submitted by the end of this period, the license shall be cancelled.
• Submission of activity reports is now mandatory; licenses may be cancelled for delayed or incomplete reports.
• If investment targets are not met, the guarantee shall be forfeited; failure to meet at least 50% of the investment target for two consecutive years shall result in license cancellation.
• If no economic reserve is found, the license and tender fee may be refunded upon application supported by an appropriate report.

7. Policies on Strategic and Critical Minerals

• Critical minerals are those that may pose economic and security risks in the event of price fluctuations or supply disruptions.
• Strategic minerals are those deemed vital for national security and economic prosperity, with supply under threat.
• These minerals may be designated by the Ministry; urgent expropriation may be carried out on related sites, and the President may impose mandatory stockpiling not exceeding 10%.

8. Mining Activities in Olive Grove Areas

• If mining activities for energy production overlap with olive grove areas, and no alternative location is feasible, activities may be permitted with Ministry approval.
• If the olive trees cannot be relocated, it shall be mandatory to establish new olive groves in an area at least twice the size of the affected area.
• The rehabilitation fee shall be collected annually in an amount equal to the license fee, and replanting shall be carried out in accordance with the number of felled trees.
• Suitable Treasury or public properties may be leased for up to 20 years at a low cost for the establishment of new groves; if maintenance requirements are met, leases may be extended in 10-year increments.

C. IMPLEMENTATION

With the entry into force of the Law as of 24 July 2025, a comprehensive compliance process has commenced for all natural and legal persons engaged in mining activities. Although transitional provisions allow for the continued application of former regulations in environmental compliance and fee calculations for existing licenses, as of 1 January 2026, all procedures must be carried out in accordance with the new legislative framework. Accordingly, it is crucial for license holders to review their guarantee structures and environmental compliance documents, and to finalize their preparations for fulfilling rehabilitation obligations.

Investors planning activities in areas subject to special permits should coordinate in advance with the relevant authorities. The performance criteria introduced for exploration and production activities necessitate more meticulous planning during investment processes. The new regulations require the joint management of environmental responsibility and administrative compliance.

D. CONCLUSION

The Law initiates a comprehensive transformation process aimed at strengthening the balance between environmental compliance, investment security, and public interest in the mining sector. Through the newly introduced concepts and implementation principles, obligations concerning licensing and production stages have been redefined, providing a more structured legal framework for investors. In this context, the 2025–2026 period constitutes a critical transition phase for strategic planning and regulatory compliance within the sector.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.