Aldridge Minerals has received an approved ‘Public Benefit’ letter from the Ministry of Energy and Natural Resources in Turkey. This represents the first significant milestone of the well-established state-assisted compulsory land acquisition process in Turkey. Accordingly, this letter provides certainty that the company will have access to all of the land needed for the development of the Yenipazar polymetallic Massive Sulphide (Au, Ag, Cu, Pb, Zn) project in central Turkey that was featured in the July issue of International Mining magazine.
The company commenced the acquisition of the surface rights for its Yenipazar project in October 2014. As all of the required land is farmland, the land acquisition does not involve any relocation or resettlement of people. With the receipt of the ‘Public Benefit’ letter, the land acquisition process is expected to accelerate.
The state will now form an independent land valuation commission that will determine a fair transaction price with reference to current market values. This commission relies on objective guidelines that are based on factors including the current usage of the land and proximity to roads and water. This process seeks to remove any subjectivity. With the assistance of expert land valuation consultants in Turkey, Aldridge used these same guidelines to determine a fair value for the land. As Aldridge determined to offer the landowners a high value proposition of three to four times this fair value, Aldridge expects the state’s valuation of the land to be significantly lower than the value the company is currently offering. However, Aldridge remains committed to maintaining open communications with the local community members that wish to take advantage of the high value proposition offered by Aldridge.
The company is fully funded to complete the land acquisition. Aldridge expects the compulsory land acquisition process to be completed by the end of the first quarter of 2016.
Han Ilhan, President and CEO of Aldridge commented, “During my meetings with shareholders and potential investors, I always emphasise the positive support the company has received from the State in Turkey, particularly with respect to the Environmental Impact Assessment being approved only seven months after submission and just two months later the receipt of the Governor’s (GSM) Permit that allows the company to conduct commercial activities in the region surrounding the Project. The approval of the ‘Public Benefit’ letter is yet another example of the strong support the Yenipazar project receives from all levels of government in Turkey. We remain committed to enhancing the economic and social conditions of the local communities in all phases of the mine development, including during construction and operations as well as after mine closure. In addition to offering a high value proposition for the land, we will work closely with the communities to maximize local hiring and to establish joint social and commercial projects.”
