Erdemir Discovers 424,000 Ounces of Gold in Major Mining Breakthrough

Turkish integrated steel producer Erdemir has announced a significant gold discovery as part of its strategic expansion into the mining sector. The company revealed that its subsidiary Ermaden has identified 424,000 ounces of gold at the Alacahan site in Sivas province, marking a major milestone in the company’s diversification and resource development strategy.

According to Erdemir’s statement, exploratory drilling carried out by Ermaden at the site revealed approximately 14.9 million tons of ore with an average gold grade of 0.89 grams per ton. The discovery, detailed in a filing with the Public Disclosure Platform (KAP), was classified as a “Possible Resource” under both National Resources and Reserves Reporting Commission (UMREK) and Australasian Joint Ore Reserves Committee (JORC) standards.

Comprehensive Drilling Program Yields Promising Results

The discovery stems from intensive exploration work within a 5,804-hectare license area, where Ermaden has so far conducted operations across 45 hectares. The company completed 360 core drillings, totaling 96,649 meters of drilling and producing 96,533 fire assay analyses, carried out by the Bureau Veritas Laboratory in Ankara, which is internationally accredited.

Ermaden is now continuing infill drilling within the current model area and preparing to launch new exploration programs in untested zones across the broader field. Once additional data is collected, the company plans to update its resource classification and conduct feasibility studies to determine the site’s economic viability and reserve estimates.

A Strategic Shift from Steel to Mining

Erdemir’s parent group, OYAK, views this discovery as a key achievement in its broader strategic transformation. Murat Yalçıntaş, General Manager of OYAK and Chairman of Erdemir’s Board of Directors, said that the group is leveraging its industrial expertise to expand sustainably into mining.

“We are transforming our strength in the steel industry into a strategic growth initiative in mining,” Yalçıntaş stated. “Bringing Turkey’s underground riches into the economy with a sustainable approach is one of the most important parts of our strategy.”

He described the Alacahan discovery as a landmark achievement, reflecting the company’s commitment to exploration and long-term investment. “As a result of Ermaden’s meticulous and continuous drilling activities in Sivas-Alacahan, a very valuable possible resource of 424,000 ounces has been identified. We consider this discovery as the first and important fruit of our correct strategy and determined efforts,” he added.

Focus on Long-Term Economic Value

Yalçıntaş emphasized that Erdemir will continue exploration efforts in the same region to unlock additional domestic resources and convert them into high-value industrial inputs. The ultimate goal, he said, is to strengthen Turkey’s industrial base while contributing to the national economy through sustainable resource development.

Highlighting the next steps, Yalçıntaş explained:
“We aim to complete our infill drilling in this region by the end of the second quarter of next year and transform our possible resource into a measured reserve. Demonstrating the economically operable value of this reserve through a detailed report is very important. At the same time, we will continue exploration and resource identification drilling in areas beyond the current 45-hectare field to increase our total potential.”

Economic and Strategic Implications

Erdemir’s expansion into mining represents more than a corporate diversification move—it reflects a broader national goal of increasing Turkey’s self-sufficiency in raw materials and strengthening its industrial resilience. Gold, in particular, remains a critical asset for both the national economy and industrial investors amid global uncertainty and inflationary pressures.

Turkey has been pushing to expand domestic mining operations, aiming to reduce import dependency and increase the contribution of extractive industries to GDP. The country’s Energy and Natural Resources Ministry has set ambitious goals to improve local exploration capacity and attract private investment into strategic mineral projects.

Erdemir’s move also underscores a trend among major Turkish industrial conglomerates toward vertical integration—securing upstream resources to stabilize production costs and ensure long-term competitiveness.

Sivas-Alacahan: A Promising Resource Hub

The Alacahan site in central Turkey has long been regarded as a promising geological zone with potential for precious metal and base metal deposits. Ermaden’s latest drilling campaign, though covering less than 1% of the licensed area, already points to substantial mineralization potential.

As exploration continues, Erdemir expects to publish updated reserve reports in 2026, which could pave the way for commercial mining operations in subsequent years. If proven economically viable, the Alacahan gold project could become one of Turkey’s most valuable domestic mining assets, contributing both to exports and industrial production.