Last Updated:
Under its 2021–2025 development plan, China boosted domestic reserves of strategic resources, raising investment in mineral exploration by 8% to 110.5 billion yuan (Rs 1.27 lakh crore)
According to the Hunan Provincial Geological Institute, the total gold reserves in the mine’s main area have now reached 300.2 tonnes. (Representative/AP File)
China has discovered a huge gold reserve in Hunan province. The estimated value of this vast reserve is believed to be hundreds of billions of rupees and is expected to support the faltering Chinese economy. This discovery is not just an expansion of its mineral wealth but also represents a potential economic strategy that could strengthen China globally.
According to the South China Morning Post, the Wangu gold mine in Pingjiang County, Hunan province, holds the reserve. Located at a depth of less than 2,000 metres below ground, more than 40 gold veins have been discovered within this mine.
According to the Hunan Provincial Geological Institute, the total gold reserves in the mine’s main area have now reached 300.2 tonnes. Furthermore, newly discovered reserves contain over 1,000 tonnes of gold. The total estimated value of these reserves is around 600 billion yuan (about Rs 7 lakh crore).
Liu Yongjun, vice president of the Hunan Provincial Geological Institute, described the discovery as a major success for China’s mineral exploration strategy. The Wangu mine is already one of the most important gold mining centres in China. Since 2020, the provincial government has invested more than 100 million yuan (about Rs 115 crore) in mineral exploration in the area.
In recent years, China has experienced a surge in gold demand, driven primarily by economic uncertainties. However, this demand has witnessed a slight decline attributed to two key factors: the central bank’s decision to halt gold purchases in May and the weakening of the yuan. This decline in demand has also contributed to a fall in gold prices. Notably, in the retail market, jewellery from renowned companies like Chow Tai Fook and Chow Sang Sang, previously priced at 820 yuan, is now selling at 720 yuan (approximately Rs 8,300) per gram.
China is focusing on increasing domestic reserves of strategic resources under its 2021–2025 development plan. Investment in mineral exploration in 2022 increased by 8 per cent year-on-year to 110.5 billion yuan (about Rs 1.27 lakh crore). This has increased the reserves of not only gold but also essential resources such as oil, natural gas, and rare earth elements.
