Gold Discoveries Show How China’s Mineral Search is Yielding Precious Prospects

SEATTLE (Scrap Monster): China says gold discoveries surpassing 168 metric tonnes (5.93 million ounces) have been made in multiple mining areas, marking the second official announcement of newly unearthed gold reserves in as many months.

The new deposits were discovered across several goldfields in northwest and northern China, according to Sunday’s report by the state-owned China News Service, citing the China Geological Survey (CGS), a division of the Ministry of Natural Resources.

A total of 102.4 tonnes were identified in Anbali, Gansu province; plus 41.3 tonnes in Hadamengou of the Inner Mongolia autonomous region; and 24.3 tonnes in Tahe Baoxinggou, Heilongjiang province.

The discoveries came amid China’s latest mineral-exploration undertakings funded by the central government, focusing on 24 existing large-scale gold resource bases while utilising advanced technologies such as big data and powerful computing, according to the CGS.

In November, geologists uncovered massive gold reserves surpassing 1,000 tonnes at the Wangu gold mine in Pingjiang county, Hunan province, which was estimated to be worth about 600 billion yuan (US$82 billion).

China has stepped up investment in the search for critical mineral resources in recent years, with a 2021-25 development plan calling for greater efforts to bolster domestic mineral reserves and production.

In 2023, the country’s exploration investments rose 8 per cent, year on year, reaching 110.5 billion yuan, helping to boost reserves of strategic resources such as oil, natural gas, rare earths and gold.

Gold prices have been around US$2,700 per ounce in recent days – a level first surpassed in October.

After a six-month pause, China’s central bank resumed gold purchases in November and December, increasing its official gold reserves to 73.29 million ounces – an increase of 160,000 ounces from the end of October.

Industry insiders have predicted that central banks worldwide will continue increasing their gold holdings. According to Golden Credit Rating, one of China’s biggest rating agencies, gold accounted for 5.5 per cent of China’s official international reserve assets as of last month – lower than the global average of around 15 per cent.

In terms of optimising the international reserve structure and advancing the internationalisation of the yuan, China’s central bank is likely to continue increasing its gold holdings in the long run, the agency said.

 Courtesy: www.scmp.com