Take the $1 billion, hand over Kazdağları

Gökay Başcan

Despite all objections from experts and environmental defenders, the omnibus bill approved in the General Assembly has spurred international mining companies into action. The government’s first move was to strike a deal with Alamos Gold, which felled more than 200,000 trees in Kazdağları, the country’s so-called oxygen reservoir. Alamos Gold had filed a compensation lawsuit in 2021 after Turkey refused to renew its mining license. That case was suspended on 2 July following a mutual agreement between the parties. It was noteworthy that the suspension date was only one day after 1 July, when the omnibus bill was expected to be presented to the general assembly for the first time.

The omnibus bill that will remove any obstacles to the transfer of forests, pastures, olive groves and agricultural land to mining and energy companies was passed by Parliament last week. The law, which has been dubbed the ‘super permit’ or ‘occupation’ law by the public, has also whetted the appetite of mining companies whose projects had previously been halted due to public objections and protection orders. Recent developments have once again highlighted the validity of criticisms that the law was drafted with mining companies in mind.

IT DESTROYED THE LUNGS OF THE COUNTRY

Alamos Gold, well known to the country and the public, caused unprecedented destruction in the country in 2019. With permission from the General Directorate of Forestry, it cut down more than 200,000 trees. A major resistance was organised against Alamos Gold, which destroyed the country's oxygen reserves and left behind a desert. In addition to the months-long “Water and Life” vigil in Kazdağları, thousands of people took to the streets in protest. Following all the lawsuits and objections filed, the AKP government backed down and did not renew Alamos Gold's licence. In response, Alamos Gold took action to seek compensation for its losses. The company, which filed the lawsuit, stated that the compensation claim, which is to be filed under the Bilateral Investment Treaty (Arbitration) to which Turkey is a party, could amount to 1 billion dollars.

SIMULTANEOUS PROCESS

A significant development has taken place in the case, which has been ongoing since 2021 and has made significant progress. Alamos Gold and the Republic of Turkey have agreed to suspend the ongoing case. With this agreement, the company may have waived up to $1 billion in compensation. The date of the suspension of the case also attracted attention.

The omnibus bill, which was approved by the committee on 21 June, was initially expected to come before the general assembly on 1 July. However, the omnibus bill discussions, which were postponed for various reasons, took place on 19 July and were approved by the Assembly.

The arbitration case was suspended just one day after the omnibus bill was initially expected to come before the Assembly on 1 July.

We do not know what conditions Alamos Gold accepted in exchange for agreeing to suspend the case, as the omnibus bill has left it with almost no legal obstacles. However, this acceptance has also raised the question of whether Alamos Gold is returning to Kazdağları.

Note: This article is translated from the original article titled 1 milyar doları alın, Kazdağları’nı verin, published in BirGün newspaper on July 25, 2025.