Aegean Mining Exporters Union/Alimoğlu: 2024 Was a Tough Year, 2025 Will Be Even Tougher

Forex - Ege Mining Exporters Association President Ibrahim Alimoğlu stated that the mining sector could not enter 2025 with much hope due to issues in accessing finance, low foreign exchange rates, high inflation, and the contraction of export markets, suggesting that 2025 is likely to be remembered as one of the challenging years. Speaking at the "Mining Sector Meeting" organized by Ege Mining Exporters Association in collaboration with Denizli Exporters Association, Denizli Chamber of Commerce, and Denizli Marble Association, Alimoğlu emphasized that forest fees and licensing charges would increase by 44% as announced in the revaluation rate and that the impending rise in the minimum wage would also affect their costs. He stated, "While our costs are rising, the exchange rates are not increasing. We support the fight against inflation, but as exporters, we want to maintain an ecosystem where we can export. Nowadays, our exporters are forced to export at cost or even at a loss. The Central Bank of the Republic of Turkey gives exporters a 2% difference when converting foreign currency sourced from abroad into Turkish lira. We want this difference to be increased to 5%."

"We have filed a lawsuit with the Council of State" Noting that there have unfortunately been developments recently that strain the sector, Alimoğlu continued: “The regulations introduced by the 16th article of the Forest Law published in the Official Gazette on September 4, 2024, significantly restrict mining activities. In response to this implementation, we, along with our relevant NGOs, have filed a lawsuit with the Council of State for cancellation. To operate a mining facility, we need to obtain permits from 24 different institutions and organizations under 8 ministries, 7 laws, 87 regulations, 8 by-laws, and 16 international agreements. One of these is forest permits. We are deeply concerned that, with the implementation of the regulations regarding the 16th article of the Forest Law, the guarantee of licenses will disappear and that the sector could reach a point of extinction."

Memişoğlu: "We will close 2024 with 4.4 billion dollars in exports" Denizli Exporters Association President Hüseyin Memişoğlu shared that they achieved 4.2 billion dollars in exports in 2023 and will also close 2024 with an export of 4.4 billion dollars. Memişoğlu remarked, "I congratulate our exporters. Because you are doing export with these exchange rates without making a profit. When we talk to our ministers, they say 'exports are increasing'. Exports are increasing, but we are selling at a loss. We hope that we will all win the battle against inflation indexed to foreign exchange soon and reach exchange rates that allow us to export." Mentioning that Denizli has a sectoral richness in exports and is the 9th province in Turkey with the highest exports, Memişoğlu stated, "Our goal for 2025 is to achieve 4.7 billion dollars in exports. We are the leading country in the export of processed natural stones. In 2023, we exported 213 million dollars, and by December 15, 2024, we have also exported 220 million dollars in processed natural stones."

He also noted that Türk Ticaret Bankası, which will provide financial support to exporters, is now operational with 4 branches and shared that a branch of Türk Ticaret Bankası will soon open within the Denizli Exporters Association.

Kasapoğlu: "Although Denizli’s exports did not decrease, profitability is gone" Denizli Chamber of Commerce President Selim Kasapoğlu pointed out that although Denizli's exports did not decrease in 2024, there was no profitability in exports, indicating that 2024 was a year where some local industrialists and exporters found themselves in negative territory in certain sectors. "As you know, Turkey has been fighting to bring down inflation with disinflation policies for a while. Of course, this is an important struggle," said Kasapoğlu. "The first step in solving the complaints we have about the economy and production in Turkey today is to reduce inflation, and the business community has supported this process until now. However, as we enter 2025, the point we have reached today is that alongside exchange rate policies, there needs to be an application of production, employment, and export policies. Because starting from January, there will be a new regulation regarding the minimum wage. Our labor costs will rise. Pressure on the exchange rate continues. This is a sign that we will enter a difficult process in 2025. The decline in interest rates may take until December and January. And in my opinion, for these interest rate reductions to meaningfully reflect on production, it may take until June and July. Therefore, we can say that a challenging process awaits us in the first half of 2025."

Incentives for labor-intensive sectors will provide relief Regarding expectations for a new incentive package for labor-intensive sectors, including textiles, ready-to-wear, and furniture, which have been publicly highlighted, Kasapoğlu stated that these incentive packages would support and provide relief to industrialists and exporters. In a session moderated by Ege Exporters’ Associations General Secretary İ. Cumhur İşbırakmaz, officials including Türk Eximbank Aegean Regional Manager Gülom Timurhan, Türk Ticaret Bankası Deputy General Manager Ahmet Zafer Seyar, and İGE A.Ş. Deputy General Manager Yiğit Alp Akdaş shared the financial resources they provide to exporters. The second session, moderated by journalist İrfan Atasoy, included speakers like Denizli Chamber of Commerce Vice President Mehmet Serter and Denizli Exporters Association Board Member Celil Kılınç.

As part of the "Mining Sector Meeting," Ege Mining Exporters Association President Ibrahim Alimoğlu and his accompanying delegation visited Denizli Governor Ömer Faruk Coşkun and Denizli Metropolitan Municipality Mayor Bülent Nuri Çavuşoğlu in their offices. The Ege Mining Exporters Association will hold the second of its "Mining Sector Meeting" sessions on Wednesday, December 25, 2024, at 3:00 PM, hosted by Muğla Chamber of Commerce and Industry.