SRINAGAR: In a significant geological breakthrough, China has uncovered a superlarge gold deposit in central Hunan Province, estimated to contain reserves exceeding 1,000 tonnes. Valued at approximately 600 billion yuan (about $83 billion), this discovery positions the Wangu goldfield in Pingjiang County as one of the largest gold deposits globally, potentially surpassing South Africa’s South Deep gold mine, which holds about 930 tonnes.
The Geological Bureau of Hunan Province announced the detection of over 40 gold veins at depths of up to 2,000 metres. These veins account for 300 tonnes of the gold reserve, with some areas of ore yielding as much as 138 grams of gold per tonne. Advanced geological exploration suggests that reserves could extend deeper, reaching over 3,000 metres and pushing the total reserve to more than 1,000 tonnes.
Geologists utilised cutting-edge techniques such as 3D geological modelling to identify and estimate these reserves. Liu Yongjun, vice head of the bureau, highlighted that this approach not only facilitated accurate measurements but also uncovered additional gold deposits in the surrounding areas, signalling the potential for even larger discoveries.
As the world’s leading gold producer, accounting for 10 per cent of global output in 2023, China’s domestic gold production was 268 tonnes, while consumption reached 742 tonnes in the first three quarters. This discovery will bolster domestic supply and reduce reliance on imports to meet growing demand. The Hunan Provincial Geological Institute described the find as “significant in safeguarding the country’s resource security.”
Gold mining in the Wangu goldfield has received substantial investment, with more than 100 million yuan (around $13 million) allocated for mineral exploration since 2020. The find is expected to strengthen China’s position in the global gold market, especially as gold prices rally amid geopolitical tensions.
Gold prices have risen significantly in 2024, with the Shanghai Futures Exchange recording an all-time high of 639.48 yuan per gram on October 30. As of late November, gold futures were trading 27.8 per cent higher than at the start of the year. International forecasts, such as Goldman Sachs’ prediction of gold reaching $3,000 an ounce by the end of 2025, further underscore the metal’s growing value.
The Hunan discovery adds to China’s portfolio of major gold mines, including the Henan Province site identified in October, which holds an estimated 50 tonnes. These developments reaffirm China’s dominance in gold mining and exploration.
Chen Rulin, an ore-prospecting expert, noted the exceptional quality of the Wangu goldfield’s deposits, with visible gold frequently observed in drilled rock cores. The site’s development will not only enhance China’s resource security but also contribute significantly to the regional and national economy.
With further exploration underway, the Wangu goldfield is poised to become a key asset in China’s mining sector, underscoring the country’s capability in resource management and technological innovation.
(The report is based on media reportage in international media including Xinhua, the official Chinese news agency)
