China Discovers Massive Gold Deposit Worth Rs 7 Lakh Crore; Surpasses South Africa's South Deep Mine

This deposit could be the largest gold reserve globally, surpassing South Africa's South Deep Mine, which holds 930 metric tonnes.

By : ABP News Bureau | Updated at : 29 Nov 2024 05:25 PM (IST)

Representational Image | A massive gold deposit in China's Hunan Province, estimated at 1,000 metric tonnes, potentially making it the world's largest gold reserve.
Source : ABPLIVE AI

A massive gold deposit in the Hunan Province of Central China is anticipated to contain 1,000 metric tonnes (1,100 US tonnes) of high-quality ore, state media reported. The Geological Bureau confirmed the discovery in Pingjiang County, in the province's northeastern region.

As per the report by Chinese State Media, it is valued at approximately 600 billion yuan (around Rs 6,91,473 crore), the deposit could be the largest gold reserve globally, surpassing South Africa's South Deep Mine, which holds 930 metric tonnes.

The primary explorations uncovered 40 gold veins in a depth of 2 kilometres, containing an estimated 300 metric tons of gold. Advanced 3D modelling indicates the possibility of additional reserves at greater depths, potentially reaching 3 kilometres. This finding is expected to bolster the gold industry and economic capabilities of China significantly.

An ore-prospecting expert at the bureau, Chen Rulin, said, "Many drilled rock cores showed visible gold." He also added that a tonne of ore in the 2,000-meter range contained up to 138 grams of gold.

According to Liu Yongjun, the bureau's vice head, advanced technologies, including 3D geological modelling, were instrumental in identifying the reserves at the Wangu gold field. Additional exploration around the site's periphery has also yielded promising results, he added.

Discovery Brings Shockwave Into Global Market

According to a report by CNN, the recent discovery of massive gold reserves in China’s Hunan province brought a shockwave into the global market, resulting in the surge of gold prices to new heights.

The future trajectory of gold prices remains unpredictable, shaped by a complex mix of factors, including interest rates, inflation, and geopolitical risks. While some analysts anticipate a bullish trend, others urge caution due to the inherent volatility of commodity markets. As the world’s largest gold producer, China contributed around 10 per cent of global output in 2023, according to World Gold Council data.

Gold prices have surged this year amid escalating global geopolitical tensions, Reuters reported. On October 30, the most active gold futures contract on the Shanghai Futures Exchange reached a record high of 639.48 yuan per gram. 

By the close of Thursday’s daytime trading, the contract had risen 1.16 per cent to 617.7 yuan per gram, marking a 27.8 per cent increase since the start of the year.

ALSO READ | Gold Demand Surges In Festive Season, However, Volumes Remain Muted

Published at : 29 Nov 2024 05:25 PM (IST)
Tags :
China News Hunan Province Gold Deposit

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