Page 24 - Bullion World Volume 3 Issue 11 November 2023

Gold in the Heartland Golden Exports New Mining Horizons
The Central Arabian Gold Region, Saudi Arabia isn't just digging gold Saudi Arabia isn't resting on its
stretching from the Red Sea coast for its own sake. Its glittering exports laurels. A new mining law, enacted on
to the nation's core, is where gold find their way to various corners of December 29, 2020, but approved
enthusiasts should focus their the globe. Leading the pack are the on June 9, 2020, is set to revitalise
attention. The Saudi Geological United Arab Emirates, Switzerland, the mining sector and diversify
Survey recently set hearts racing by India, Australia, and Malaysia as the the nation's economy away from
announcing the discovery of gold prime destinations for Saudi Arabia's hydrocarbons. The law prioritises
deposits in the Aba al-Raha locality precious gold exports. investor access to financing,
of Medina. In a significant milestone, supports exploration and geological
Saudi Arabia's largest gold mine A Love for Gold survey activities, establishes a mining
commenced operations in the first It's not just about production; Saudi fund for sector development, and
quarter of 2022, further solidifying the Arabia is also one of the world's addresses investor concerns about
country's position in the global gold largest consumers of gold and growth and profitability.
market. jewellery. Predictions indicate that the
nation's gold and diamond jewellery Guardians of the Mining Realm
A Global Player market is set to grow into a $7.06 The Ministry of Industry and Mineral
In 2022, Saudi Arabia ranked as the billion industry by 2027. Saudi gold, Resources stands as the guardian
world's twenty-sixth-largest gold often 21 karats or higher, boasts of the Mining Investment Law. This
producer, with production showing intricate designs and carvings, legislation, aligned with contemporary
an impressive 11% increase in 2021. rivalling any global jewellery hotspot. international practices, supersedes
The nation's gold reserves, estimated the old law in effect since 2005.
at a staggering 60 million ounces, are Golden Tax Rules The Ministry of Industrial and
nothing to scoff at. While gold mining Saudi Arabia has some clear rules Mineral Resources is the principal
hasn't historically been a headline when it comes to taxing gold. Gold government entity entrusted with
act, it's the unsung hero, largely with a purity of 99% or higher enjoys ensuring adherence to the Mining
overshadowed by copper mining. a tax exemption. For gold with a Investment Law, guiding Saudi Arabia
Saudi Arabia's gold reserves are purity level below 99%, the standard into a bright and promising mining
nothing short of impressive, currently 5% VAT rate applies. However, it's future.
standing at 323.7 tons. essential to note that gold jewellery
sold by individuals registered in the
VAT system is subject to a 15% VAT.

Turkey

Topic Key Points

Turkey's Gold Love - Turkish culture values gold for ceremonies, private ownership: $200-300B.

Gold Demand - Turkey consistently 9% of global gold bar and coin demand, surged in Q2 2023.

Gold Reserves - Q1 2023: 572 tonnes, 34% of forex reserves. Oscillating, +148 tonnes in 2022.

Turkish Gold Coins - Altin, Mahbub, Kurush (Mecidi) coins guard against currency depreciation.
Turkey's Gold Mines - 19 active gold mines, incl. Çöpler, Ertugrul Gazi, Soma, and TavSanli.

Mining Laws - State owns resources, private entities can obtain rights. No foreign ownership restrictions.

Golden Exports - Turkey ranks third globally in gold consumption. Jewellery exports target $6B.

Jewellery Exports - Turkish jewellery exports reach diverse global destinations.