Foreign capital in the Ottoman mining sector in the early 20th century: The case of the Karasu Mines Ottoman Joint-Stock Company

This thesis examines the Karasu Mines Ottoman Joint-Stock Company, which operated in the mining sector of the Ottoman Empire in the early 20th century. The aim of this study is to analyze the general structure of the Ottoman mining sector and the activities of the said company, thereby constructing an institutional monograph of an Ottoman joint-stock company based on its internal dynamics. Since the mid-19th century, the mining sector in the Ottoman Empire began to develop under the influence of industrialization and foreign capital investments. The steady increase in investment interest in the mining sector facilitated the gradual institutionalization of the industry. During this process, the influence of foreign capital showed a consistent upward trend. Mining enterprises that were capable of contributing to the Ottoman economy began to be established in the last quarter of the 19th century, and their numbers increased in the early 20th century, thereby enhancing the value of the mining sector. The Karasu Mines Ottoman Joint-Stock Company was established in 1900 as a result of a partnership primarily involving indirect foreign capital and actual local capital. The company conducted prospecting and operational activities for argentiferous lead and zinc mines in the Karasu District, located on the Black Sea coast and under the jurisdiction of the İzmit Sanjak. However, due to the lack of physical infrastructure to support economic development in the Ottoman Empire and the absence of professional-level operations at the mining site, the company underwent a significant restructuring process. Operating in a region distant from essential infrastructure such as ports, railways, and highways along the Black Sea coast, the Karasu Mines Ottoman Joint-Stock Company directly linked its development to the region's infrastructure improvement. In addition to infrastructure projects, the company placed great emphasis on institutionalization to raise the quality of its operations to the standards of the international mining sector. All these preparatory efforts were aimed at exploiting the rich deposits believed to exist at the mining site. The company's long-term operational plans were predicated on the anticipated revenue from these deposits. If the projected income could be realized, the investments would achieve their intended purpose. Thus, the company aimed to contribute to the Ottoman mining sector, especially in the region where it operated, and to achieve high profits as a natural consequence of these contributions. To achieve this goal, the Karasu Mines Ottoman Joint-Stock Company operated between 1900 and 1909. Subsequently, the Karasu Ottoman Joint-Stock Mining Company was established, yet despite continuing efforts, the initiative failed. In conclusion, this thesis reveals that the Karasu Mines Ottoman Joint-Stock Company was an unsuccessful business venture. Despite significant investments aimed at achieving success, the failure to exploit the rich mineral deposits that would generate revenue ultimately led to its downfall. The company's institutional monograph demonstrates that this significant business initiative was unable to achieve its objectives and lost its influence without playing an effective role in the Ottoman mining sector.