Gold mining in China
Overview of gold mining in the People's Republic of China From Wikipedia, the free encyclopedia
Overview of gold mining in the People's Republic of China From Wikipedia, the free encyclopedia
Gold mining in the People's Republic of China has made that country the world's largest gold producer.[1] In 2022, China mined 403 tons of gold. Data indicates the marginal costs are often above the world price for gold.[2] For the year 2007, gold output rose 12% from 2006 to 276 tonnes (9,700,000 oz; 304 short tons) to become the world's largest for the first time—overtaking South Africa, which produced 272 tonnes (9,600,000 oz; 300 short tons).[3] South Africa had until then been the largest for 101 years straight since 1905. The major reasons for this change in position had been due to South African production falling by 50% in the past decade as production costs there have risen, more stringent safety regulations have been implemented, and existing mines have become depleted.
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On the other hand, as of 2014 gold output in China had more than doubled since year 2000. In recent years, China's gold mining industry has received increased foreign and domestic investment, and project numbers have increased as more discoveries have been found. China produced nearly 300 tonnes of gold in 2008. It is also the only country in the top three where production rose in 2008.[4] In 2014, production had increased to 450 tonnes.[5]
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Domestic producers still suffer from a lack of scale. In 2000, there were about 2,000 gold producers - most of them relatively small and unsophisticated by international standards. Few are able to operate on a global platform, though the number of producers had shrunk to about 800 in 2007 after mergers and acquisitions and restructuring and consolidation. Most of these firms' technological standards and management are weak and inefficient.
The country's oldest and largest gold producer is the China National Gold Group Corporation (CNGGC), which accounts for 20% of total gold production in China and controls more than 30% of domestic reserves. CNGGC also controls Zhongji Gold, the first publicly listed gold mining company in China.
China's gold reserves are relatively small (about 7% of the world total). Production has usually been concentrated in the eastern provinces of Shandong, Henan, Fujian and Liaoning. Recently,[when?] western provinces such as Guizhou and Yunnan have seen a sharp increase, but from a relatively small base. There is gold mining in Tibet in Maizhokunggar County east of Lhasa.[6]
Top foreign investment has come from Canada and Australia. Though foreign investment still constitutes a very important part of gold mining expansion, since 1995 it has no longer been actively encouraged by the Chinese government.[citation needed]
Gold Fields and Australia's Sino Gold Mining Ltd., have set up a joint venture focused on discovering large gold deposits in China with the potential to produce about 500,000 ounces a year. Sino Gold has been buying stakes in Chinese gold deposits and explorers. In May it started production at its Jinfeng Gold Mine in southern China, with planned gold production of 180,000 ounces per year.[7]
Dynasty Gold Corp. was a majority shareholder in Hatu Gold Mine in Xinjiang, the Red Valley project in Qinghai and the Wildhorse project in Gansu. The Red Valley and Woldhorse projects are located on the Qilian metallogenic belt.[8]
In 2006 the Chinese Government began encouraging some private and state-owned companies to pursue mining deals outside of China. In the 10 years that have since passed, the number of major mining/mineral projects in Africa that are owned by Chinese firms have increased from only a handful in 2006 to more than 120 in 2015.[9] A 2016 report stated that Chinese mining companies intend to continue and even increase investments in foreign assets.[10] In 2012, the China General Nuclear Power Corporation (CGNPC) invested in the Husab project in Namibia, one of the world's largest uranium deposits,[11] and mining started in 2015.[12] Chinese mining companies have invested and purchased assets in Sierra Leone,[13] at least nine mining companies in South Africa,[14] Zimbabwe,[15] and the Democratic Republic of Congo (DRC).[16]
In January 2008, China opened its first gold futures market in Shanghai in response to domestic demand for gold, as well as allowing its producers to hedge risks from daily gold price fluctuations.[17]
One metric ton is equal to about 1.1 short tons, which is the common volume measure in the United States, or 35,274 ounces.
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