The presence of gold in China has been known for centuries, but today is by far the world’s largest producer of gold. The production of gold has since been on the rise over the years, and this has been attributed to increased participation in the gold mining industry by foreign as well as the local based investors.
The investment made into the mining sector in China has been nothing short of spectacular over the past few decades. Many people would never have thought that South Africa, which long held the top spot for gold production, would ever get surpassed by China. Now they are nowhere close, and gold production and overall investment continues to increase.
The gold mining industry has been dominated by China National Gold Group Corporation (CNGGC) for a number of decades now. And the corporation contributes about 20% of gold to the total production in the whole country.
The National Gold Group Corporation of China is also known to have dominance on over 30% domestic reserves. It is this corporation which manages even the affairs of Zhongji Gold Mining Company.
Gold Reserves vs. Total Production
It is also important to note that China holds only about 7% of gold in its reserves of the world total. Nevertheless, the country’s gold production is highly executed in the provinces located in the eastern region. Such provinces include Shandong, Henan, Liaoning as well as Fujian.
There are also reports that the western provinces in recent years have also recorded an increase in gold production. The reported locations include Guizhou and Yunnan Provinces. Gold mining has also been reported to occur in Tibet within the county of Maizhokunggar in the eastern part of Lhasa.
Other places known for gold mining in China include the area of Inner Mongolia in the Northern Province, where a mining company known as Chang Shan Hao gold mine runs its operations. The mine has since been producing about 120,000 ounces of gold annually. As a result, this mine is now regarded as one of the major contributors to the total gold produced in the country.
The southern region of China has also not been left out in gold production. The region is known to host the Jinfeng Mine, which produces about 180,000 ounces of gold every year.
A Rising Economy with an Emphasis on Gold
The gold output of China’s gold productions cannot be over emphasised, especially when compared to other gold producers. For instance, according to the reports issued with regard to gold production in 2016, China is believed to have produced about 453.5 tons of gold, compared to some of the more traditionally known mineral countries like Australia which produced 270 tons and Russia’s 250 tons of gold.
The potential of gold availability in China is very high, as it is evident from the reports given, that the country intends to increase production capacity to 500 tons of gold every year up to 2020. This is believed to be possible as the country through China Gold Association reported in October, 2017 that by the end of 2016 there was proven gold reserves of about 12,100 tons, all waiting to be extracted.
The gold mining operations on a large scale in China are highly focused on mining the gold ore from the hard rock deposits. On the other hand, other placer deposits are found within the river systems located in the south-western part of China.
Huge Reserves Mean Mining is Here to Stay
The production of gold in China has been on the increase over the years, due to new techniques employed each year as the technological invasions keep advancing. Thus, the country is very much optimistic that with the gold stored up in the reserves, and the high demand of the commodity in that country it is likely to continue being the leader when it comes to gold production.
Gold deposits distribution in China is widely spread, especially in the provinces that fall in the eastern region, in addition to those in the western, southern and northern regions.
The industry has also been opened to foreign based investors to undertake the mining activities together with the local companies. These outside interests do comply with serious oversight in order to operate within the country but they are vital parts of the overall production seen within China.
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