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Information on Direct and Indirect Subsidiaries of Park Elektrik
Shareholder Structure
31.12.2022
31.12.2023
Company Title
Current Operations
Direct and Indirect Ownership Ratio
Effective Ownership Ratio
Direct and Indirect Ownership Ratio
Effective Ownership Ratio
Konya Ilgın Elektrik Üretim Sanayi ve Ticaret A.Ş.
Coal production and sale
100%
100%
100%
100%
- Currently, Park Elektrik does not have any associate investment.
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Park Elektrik has a subsidiary named Konya Ilgın Elektrik Üretim Sanayi ve Ticaret A.Ş. (“Konya Ilgın”) which is totally owned by Park Elektrik. The subsidiary Konya Ilgın, headquartered in Ankara, has a branch in Ilgın district of Konya where mining site is located.
Konya Ilgın, the subsidiary of the Company, has a project to establish a thermal power plant with fluid bed boiler technology that will have an installed capacity of 500 MW.
Konya Ilgın has the operating rights of lignite coal in related mine fields located in Konya, Ilgın through its mining operation licenses (fields with license number 1247 and 2444) and royalty agreement (field with license number 1247).
Due to recent economic and sectoral developments observed in Turkish electricity market that are out of Company’s and its subsidiary’s control, the construction of the thermal power plant has not commenced yet. The Energy Market Regulation Authority (“EMRA”) has rejected the application of Konya Ilgın which includes the amendment of the electricity generation license dated 27 February 2013 with a term of 49 years by extending the completion time of the thermal power plant by an additional 66 months and cancelled the electricity generation license with its decision taken on October 27, 2022. Legal action was taken against the decision. The investigation on the merits of the case is ongoing at the appeal stage.
Our subsidiary Konya Ilgın started to carry out a preliminary mining activity plan due to the fact that the construction of the power plant has not started yet and the construction period of power plant is approximately 3.5 years. Konya Ilgın aims to perform 47,8 million m³ of stripping activity and produce approximately 2,3 million tonnes of coal within the period of June 2019- December 2027. Due to the fact that it is not possible to store the coal for a long time in this pre-investment period (spontaneous combustion as a result of oxidation, etc.), Konya Ilgın started to generate income by selling coal during this transition period. The main mining activity plan which aims to produce approximately 3,5 million tonnes of coal per year during the 30-year operational period of power plant, will meet the fuel need of the thermal power plant. The duration of the preliminary mining activity plan can be extended based on the timing of power plant construction.
Konya Ilgın will use fluid bed boiler technology for lignite combustion. The fluid bed boiler technology is an environmentally friendly coal technology used in low quality fuels, and is the most advanced and world-proven method available.
As of 28 September 2023, paid-in capital amount of Konya Ilgın is TRY 300,000,000 and capital divided into 300,000,000 shares each with a nominal value of TRY 1.
According to the Coal Resource Estimation Report prepared in accordance with standards adopted by National Resources and Reserves Reporting Committee of Türkiye (“UMREK”) on 20 August 2024, it is estimated that 193,7 million tonnes of coal is located in the fields with licence numbers 2444 and 1247. The lower calorific value of the coal on original basis was determined as an average of 2,022 kcal/kg. As a result of the data obtained from the drilling carried out in the fields between 1997 and 2024 and the confirmation drilling carried out in 2024 within the scope of UMREK (2023) reporting, it has been concluded that the data obtained from the drilling has sufficient accuracy and precision and supports the “Measured” and/or “Indicated” resource classes that allow mineral reserve estimation in both quantity and quality. Within this framework, 104.2 million tonnes of total 193.7 million tonnes of coal resources are classified in the “Measured” and/or “Indicated” resources, of which 62.6 million tonnes are in the “Measured” resources and 41.6 million tonnes are in the “Indicated” resources, and 89.5 million tonnes are classified in the “Inferred” resources. The amount of coal required for the thermal power plant is estimated to be about 105 million tonnes within the scope of the 30-year main mining planning which will be implemented in the period when the power plant will become operational.
Basic information about Konya Ilgın Thermal Power Plant Project is shown in the table below:
Project & Location
Ilgın Thermal Power Plant - Konya / Ilgın
Type of Plant
Thermal – Fluid Bed Combustion
Installed Capacity
500 MW
Type of Fuel
Domestic Coal / Fuel Oil
Estimated Cost
The total power plant investment is estimated to be approximately USD 650 million considering the main power plant investment (approximately USD 600mn) and auxiliary investment expenditures (switchgears, water intake plant, ash dam etc.)
Estimated Average Electricity Generation Amount (Gross)
3,800,000,000 KWh / Year
Estimated Coal Consumption Amount
About 3,5 million tonnes / Year
Construction Duration
43 months (about 3.5 years)
Easement Period
49 years in order to establish an electricity generation facility at the power plant site. (The right of easement was obtained on 27 February 2013.)
Coal License Period (License numbered 2444)
IV. Group (B) mining operation license covering an area of 1,865.42 hectares and valid until 4 March 2043. (The field is on temporary holiday until 23 October 2024.)
Coal License Period (License numbered 1247)
IV. Group (B) mining operation license covering an area of 5,649.65 hectares and valid until 21 June 2026.
Environmental Permit and License Certificate
Currently, Konya Ilgın which carries out mining activities in the field with license number 1247, has an Environmental Permit and License Certificate valid until 1 July 2026.
Royalty Contract Period (License Numbered 1247)
A royalty contract covering an area of 5,649.65 hectares is valid until 9 April 2032. There is a minimum production commitment of 300,000 tonnes per year.
Estimated Reserve/Resource Amount
According to UMREK (2023) report, is estimated that there is a total of approximately 193,7mn tonnes of coal resource in the fields with license number 1247 and 2444. The average lower calorific value of the coal in those fields is approximately 2,022 kcal/kg.
