China's groundbreaking discovery in Hunan province unveils a vast goldfield with reserves valued at billions. Geologists found over 40 new gold veins at the Wangu gold mine, increasing total resources to 300.2 tonnes. This "massive" find, worth about $82.8 billion, bolsters China's mineral exploration strategy and resource security. The nation's proactive mineral exploration approach has led to significant discoveries, including rare earths and gold reserves, highlighting a strategic commitment to economic stability and resource security.
In a groundbreaking revelation, China has unearthed a "massive" goldfield in the heart of Hunan province, boasting reserves valued at tens of billions of dollars. Geologists have uncovered over 40 new gold veins, nestled less than 2,000 meters beneath the surface at the Wangu gold mine in Pingjiang county. This discovery has propelled the total gold resources in the core area of the mine to a substantial 300.2 tonnes, as announced by the Hunan Provincial Geological Institute in a recent online statement.
Described as a colossal reserve, this find boasts more than 1,000 tonnes of gold deposits, estimated to be worth approximately 600 billion yuan (US$82.8 billion) at current market rates. Liu Yongjun, the institute's vice-president, hailed this breakthrough as a significant milestone in China's mineral exploration strategy. The statement further emphasized the find's crucial role in fortifying the nation's resource security.
The Wangu goldfield stands as a pivotal gold-mining hub within China, with provincial authorities injecting over 100 million yuan into mineral exploration efforts since 2020. The surge in gold demand over recent years, driven by consumers and retail investors seeking refuge amidst economic uncertainties, has been notable. However, this rush has begun to taper off following the suspension of gold purchases by China's central bank and shifts in currency values post Donald Trump's election victory.
Consequently, the price of gold has dipped to a near-two-month low, with retail gold jewelry prices undergoing a decline as well. Notably, popular Chinese brands like Chow Tai Fook and Chow Sang Sang are now retailing gold jewelry at approximately 720 yuan (US$99) per gram, down from 820 yuan at the month's onset.
China's proactive stance on mineral exploration has gained momentum in recent years, with a development plan spanning 2021-2025 advocating for heightened efforts to bolster domestic mineral reserves and production. The country witnessed an 8% surge in exploration investment last year, amounting to 110.5 billion yuan, a move that significantly augmented reserves of strategic resources ranging from oil, natural gas, rare earths, to gold.
Significant discoveries have continued to unfold across China, with 4.96 million tonnes of rare earths unearthed in the Liangshan Yi autonomous prefecture of Sichuan in September. Prior to this, the northwestern province of Qinghai revealed 43.2 tonnes of gold reserves, while the Xiling gold mine in Shandong province confirmed an additional 200 tonnes of gold reserves in May 2023, elevating its total reserves to a substantial 580 tonnes. The nation's commitment to fortifying its mineral reserves underscores a proactive and strategic approach to resource security and economic stability.
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