Hunan, China (Agencies): A groundbreaking discovery in central China’s Hunan Province has unveiled a gold reserve estimated at over 1,000 metric tonnes, valued at approximately $83 billion. This significant find, announced by the Geological Bureau of Hunan Province, has garnered international attention.
The deposit, located in Pingjiang County, includes over 40 gold veins identified at depths exceeding 2,000 meters. Initial exploration has confirmed 300 tonnes of high-grade gold resources, with further estimates suggesting reserves could surpass 1,000 tonnes at deeper levels. This discovery solidifies China’s position as a leading gold producer, accounting for approximately 10% of global output. It comes at a time when geopolitical tensions and economic uncertainties have driven gold prices to record highs, with the Shanghai Futures Exchange recently reporting peak trading values for the metal.
Gold plays a critical role in China’s economy, serving as both an industrial resource and a hedge against currency fluctuations. Despite being a major producer, China remains reliant on imports to meet domestic demand, consuming over 741 metric tonnes in the first three quarters of 2024. The new reserve underscores China’s ongoing commitment to resource exploration and could significantly bolster the nation’s strategic gold reserves in the coming years.
The discovery is part of China’s broader strategy to increase domestic reserves of strategic resources under its 2021-2025 development plan. Investment in mineral exploration has increased by 8% year-on-year to 110.5 billion yuan. This has not only boosted gold reserves but also essential resources such as oil, natural gas, and rare earth elements. The Pingjiang County site is one of the deepest gold discoveries in China, with rich veins and high-grade ore samples highlighting the potential for significant economic gains. However, extracting gold from such depths poses technical and logistical challenges, requiring advanced mining techniques and substantial investment.