China has discovered gold reserves worth $82.9 billion in the central Hunan province, according to a report from state-run news agency Xinhua on November 21.
As the world’s largest gold producer, China accounted for approximately 10% of global gold output in 2023, according to the World Gold Council.
The country has faced a growing demand for gold, consuming 741.73 metric tons in the first three quarters of the year, while its domestic production totaled 268.07 tons. This gap in supply has led China to rely on imports to meet its needs.
The Hunan Academy of Geology made the discovery in Pingjiang county, where more than 40 gold ore veins were found at depths exceeding 2,000 meters or 6,560 feet. These findings revealed a total of 300.20 tons of gold resources in the core exploration area, with the highest gold grade reaching 138 grams per metric ton.
Xinhua reports that the group anticipates over 1,000 tons of gold reserves at depths greater than 3,000 meters.
Gold reserves typically refer to the portion of a resource that is economically feasible to extract.
Fueled by rising geopolitical tensions, gold has become an increasingly valuable asset. On October 30, the most actively traded gold futures contract on the Shanghai Futures Exchange reached a record high of 639.48 yuan ($118.58) per gram.
As of Thursday, November 28, the Shanghai Gold benchmark price was 610.69 yuan per gram, reflecting a 26.98% rise since the beginning of the year.