Refineries

How Is a Refinery Defined in the Legislation?

A refinery is a legal entity that carries out refining and has been granted permission by the Ministry of Treasury and Finance.

Refining is the purification, by applying specific techniques, of non-standard unprocessed or processed gold, silver, platinum and palladium, including scrap, or of such metals obtained from ore, and their conversion to internationally accepted standards.

The source of these definitions is the Communiqué (tebliğ) on Precious Metal Standards and Refineries (Communiqué No. 2023/1, Ministry of Treasury and Finance, Official Gazette of 23 February 2023, No. 32113; as amended by Communiqués No. 2023/2 and No. 2024/1).

The Communiqué is based on Articles 1, 2, 7 and 20 of Decree No. 32 on the Protection of the Value of Turkish Currency (32 sayılı Karar); on Article 12 of the Regulation on the Operating Principles of Precious Metals Exchange Intermediary Institutions and the Establishment of Precious Metals Brokerage Houses; and on Articles 1 and 8 of the Borsa İstanbul A.Ş. Regulation on the Principles of Exchange Activities Relating to Precious Metals and Precious Stones.

The Entry Gate — Establishment Permit

Requirements for the establishment permit of refineries whose products may be bought and sold in Türkiye and exported abroad:

Company structure

• Being incorporated as a joint stock company
• Having the word "refinery" (rafineri) in the trade name in the articles of association
• Paid-in capital of no less than TRY 35,000,000
• All shares being registered shares and issued for cash
• The articles of association complying with the provisions of the Communiqué

Qualifications required of founding shareholders

For each founding shareholder resident in Türkiye (Türkiye'de yerleşik), for persons holding a shareholding of 10% or more in legal-entity founding shareholders, and for persons related to legal-entity shareholders:

• Not being bankrupt, not having declared a concordat, not having had an application for restructuring by way of settlement (uzlaşma) confirmed, and not being subject to a decision on the postponement of bankruptcy
• Not having been convicted — even if pardoned, and excluding offences committed by negligence — to a fixed-term prison sentence or of certain offences: disgraceful offences · offences against public trust · smuggling offences under Law No. 5607, the Anti-Smuggling Law (Kaçakçılıkla Mücadele Kanunu) · offences under Law No. 7262 · offences under the Banking Law (Law No. 5411) · laundering of assets derived from crime · financing of terrorism · tax evasion, and participation in these offences
• Within the last 1 year as of the application date, not having held a shareholding in, or not having been the chair or a member of the board of directors, the general manager, the internal control and supply chain compliance officer or an employee with signing authority of, a refinery whose operating licence was revoked by the Ministry under subparagraph (ç) of the first paragraph of Article 18 of the Communiqué
• Not having been subject to an administrative sanction under the fifth paragraph of Article 3 of Law No. 1567 on the Protection of the Value of Turkish Currency (1567 sayılı Türk Parasının Kıymetini Koruma Hakkında Kanun)
• Companies in which they hold a shareholding of 10% or more not having overdue debts under Law No. 6183
• Having the necessary financial strength and the integrity, competence and reputation required by the business

Operating Licence — Separate for Each Metal

Separate applications for an operating licence are made to the Ministry for each of gold, silver, platinum and palladium.

Documents to be attached to the application

• The issue of the Turkish Trade Registry Gazette in which the articles of association were published
• A bank document showing that the minimum share capital has been paid in cash and in full
• A document evidencing that an amount equal to one tenth of the paid-in capital has been deposited with one of the state-owned banks, or a letter of guarantee for the same amount obtained from a state-owned or privately owned bank
• Documents relating to corporate governance
• A board of directors resolution showing that a general manager and an internal control and supply chain compliance officer have been appointed and vested with the necessary powers
• A document evidencing payment of the application fee specified in the Regulation

Technical and physical requirements

• Technical equipment, staff, building and equipment capable of refining precious metals obtained from ore in the form of bars, bullion, doré bars, granules and scrap
• An Environmental Impact Assessment report (ÇED)
• Environmental conditions, safety measures and a hygienic environment prepared in a manner suitable for refining
• A system for the treatment and recovery of waste materials
• Having the flame purification technique required for precise analysis and at least one of the other analytical techniques
• An assay office (ayar evi) within the refinery, authorised under the Communiqué published in the Official Gazette of 10 March 2022, No. 31774
• Establishing an internal control system, the appointment by the board of directors of a sufficient number of internal control and supply chain compliance officers, and the establishment of an internal control unit

Minimum production capacity

Minimum fineness

Fineness to be achieved in refining operations:

Conformity commission

The Ministry sets up a commission to determine whether the applicant fully meets the technical requirements and has the capacity necessary to produce precious metals to internationally accepted standards. The commission is made up of representatives of the following:

• Ministry of Treasury and Finance, Directorate General of Financial Markets and Foreign Exchange
• Ministry of Industry and Technology
• Exchange
• General Directorate of Mint and Stamp Printing House (Darphane)
• The relevant chamber of industry and the metallurgy and chemistry department of a university

A conformity report is prepared following the commission's on-site inspection and the sample tests carried out by the Turkish State Mint. The report is adopted by an absolute majority; however, the votes of both the Directorate General of Financial Markets and Foreign Exchange and the Turkish State Mint must be among the votes forming that absolute majority.

Obligations During Operation

Stamping and marking

Each piece of bullion and each bar produced by refineries must bear:

• The fineness stamp
• The refinery's emblem or stamp
• The fineness
• On bars and bullion larger than 1 kilogram: the date, as month-year or year; for precious metals other than gold, the gross weight in kilograms, grams or ounces
• On 1-kilogram bullion: the gross weight in kilograms or grams
• On bars and bullion smaller than 1 kilogram: the gross weight in grams or ounces
• On bars and bullion of 10 grams and below, the serial number may be shown on the packaging
• The name of the metal: GOLD or AU for gold · SILVER or AG for silver · PLATINUM or PT for platinum · PALLADIUM or PD for palladium

In addition, for silver granules: the bag must be sealed, and the bag must show the fineness, the weight (excluding the weight of the bag), the refinery's name or emblem, one of the expressions "Granül Gümüş" or "Silver Granules", and the date of production.

Precious Metals Tracking System (KMTS)

The system in which the producer, date and place of production, weight, fineness, serial number and similar characteristics of standard unprocessed precious metals and minted precious metals produced by refineries are applied to each product by means of a unique code provided by the Turkish State Mint, and recorded under the same code.

Notification obligation

Refineries must notify the Ministry of the technical characteristics of the precious metals they produce, together with representative photographs/images. Refineries on the Exchange Refinery List also send this information and these documents to the Exchange.

Compliance and audit documents

• Supply chain compliance report — prepared within the framework of the procedures and principles on the responsible precious metals supply chain determined according to international criteria
• Independent assurance report — issued by independent audit firms authorised under the Standard on Assurance Engagements 3000 published by the Public Oversight, Accounting and Auditing Standards Authority
• Internal control unit and internal control and supply chain compliance officer

Supervision and Sanctions

Oversight and supervisory authorities: Ministry of Treasury and Finance · the Exchange · the Turkish State Mint (as regards the Precious Metals Tracking System (Kıymetli Maden Takip Sistemi, KMTS) and sample tests)

Revocation of the operating licence — In the cases listed in the first paragraph of Article 18 of the Communiqué (failure to commence operations within 90 days; absence or loss of the establishment or operating requirements; production in breach of technical requirements and standards; failure to prepare the supply chain compliance report, or an adverse opinion in the assurance report; absence of the technical requirements in the review under Article 16(6); operating in breach of Article 9), the operating licence is revoked by the Ministry. Where revocation is under subparagraphs (c) and (e), the refinery and its shareholders may not file a new application for 5 years; where revocation is under subparagraph (d), for 1 year. Those who held a shareholding or a management position within the last 1 year in a refinery whose licence was revoked under subparagraph (ç) may not take part in the establishment of a new refinery.

Administrative fines — within the framework of Article 3 of Law No. 1567. Where activity is carried out without a certificate of authorisation (yetki belgesi), Article 3(5) applies: in addition to an administrative fine, the sanction of suspending all activities at the business premises for one month, or permanently if the premises were opened solely for this activity.

Overlapping risk areas:

Typical Disputes in This Sector

• Revocation of the operating licence and the right to property. Revocation raises debate as to its nature as an administrative sanction, proportionality and the constitutional right to property.
• Fineness and purity disputes. Conformity of the delivered metal with the fineness report; Exchange members are responsible for the conformity of non-standard unprocessed precious metals traded on the Exchange with the fineness report (ayar raporu).
• Supply chain compliance audit findings. Findings of breach of responsible supply chain criteria.
• Non-conformity with technical requirements and capacity. Objections to the commission's review and to Turkish State Mint sample test results.
• Disputes over founding shareholder qualifications. Rejection of an application due to a past administrative sanction or shareholding history.

Which of Our Practice Areas Come into Play

Frequently Asked Questions

What is the minimum capital for establishing a refinery?

Paid-in capital must not be less than TRY 35,000,000. All shares must be registered shares and issued for cash. For refineries whose products will be traded on the Exchange (that is, refineries to be included in the Exchange Refinery List), paid-in capital must be at least TRY 50,000,000 and annual capacity at least 50 tonnes for gold and silver and at least 10 tonnes for platinum and palladium (Communiqué, Article 13(1)).

Does a refinery have to be a joint stock company?

Yes. In addition, the trade name in the articles of association must contain the word "refinery".

How much time do I have after obtaining the establishment permit?

Within 180 days of the date of the establishment permit, the incorporation procedures must be completed and an application for an operating licence must be made. Otherwise, the establishment permit is deemed revoked. In cases of force majeure or justified circumstances, the Ministry may extend the period by up to 180 days; if the circumstances continue, it may increase this additional period by up to two times.

Is a separate licence required for each precious metal?

Yes. Separate applications for an operating licence are made to the Ministry for each of gold, silver, platinum and palladium.

What is the minimum production capacity?

An annual production capacity of at least 10 tonnes of gold for a gold refinery, at least 10 tonnes of silver for a silver refinery, at least 1.5 tonnes of platinum for a platinum refinery and at least 1.5 tonnes of palladium for a palladium refinery.

How much should the letter of guarantee be?

An amount corresponding to one tenth of the paid-in capital. This amount is deposited with one of the state-owned banks, or a letter of guarantee for the same amount is obtained from a state-owned or privately owned bank.

Must there be an assay office within the refinery?

Yes. For the fineness of the products produced to be determined and analysed, there must be an assay office within the refinery, authorised under the Communiqué published in the Official Gazette of 10 March 2022, No. 31774.

What must appear on the bullion produced?

The fineness stamp, the refinery's emblem or stamp, and the fineness are mandatory. Depending on the weight, the date and gross weight are shown, and depending on the metal, the expression GOLD/AU, SILVER/AG, PLATINUM/PT or PALLADIUM/PD.

What is KMTS?

The Precious Metals Tracking System. It is the system in which characteristics of each product produced, such as its producer, date and place of production, weight, fineness and serial number, are applied to the product by means of a unique code provided by the Turkish State Mint, and recorded under the same code.

What happens if the operating licence is revoked?

The consequence depends on the ground for revocation. Where revocation is for production in breach of technical requirements and standards, or for operating in breach of Article 9, the refinery and its shareholders may not file a new application for 5 years; where revocation is for the absence of the technical requirements in the review under Article 16(6), they may not do so for 1 year. If the licence was revoked on account of the supply chain compliance report or the assurance report, those who, within the last 1 year, held a shareholding in that refinery or were its chair or a member of its board of directors, its general manager, its internal control and supply chain compliance officer or an employee with signing authority may not take part in the establishment of a new refinery.

The full text of the Communiqué, article summaries and a legal assessment are found in Kambiyo Mevzuatı Rehberi [Guide to Foreign Exchange Legislation], co-authored by our founder (R. Bülent Demirbağ / M. Abdullah Türkkan, Vedat Kitapçılık, 2026).