- China found $83 billion worth of gold reserves
- Gold reserves refer to the amount of gold that can be economically extracted
- Why gold mining is so important to this day?
China found $83 billion worth of gold reserves
China discovered the 'supergiant' gold deposit. Experts state this is one of the largest reserves on Earth and is worth more than $80 billion. Officials announced that scientists uncovered this massive deposit of high-quality gold. It was hidden near some of the country's existing gold mines.
This new deposit was covered at the Wangu gold field in the northeast of Hunan province. According to the World Gold Council, China is already the largest gold producer, accounting for around 10 percent of global output in 2023[1].
In the first three quarters of this year, China consumed 741.732 metric tons of gold but only produced 268.068 tons. As a result, the country is relying on imports to meet its growing demand. Gold prices have risen, driven by escalating global geopolitical tensions.
On October 30, gold futures on the Shanghai Futures Exchange hit a record high of 639.48 yuan per gram.
Gold reserves refer to the amount of gold that can be economically extracted
Pingjiang County, the Hunan Academy of Geology made an exciting discovery: over 40 gold ore veins at depths of more than 2,000 meters. These veins are estimated to contain 300.2 tons of gold, with the highest grade reaching 138 grams per metric ton. Experts believe deeper reserves, beyond 3,000 meters, could hold more than 1,000 tons of gold[2].
It is challenging to check or track the amount of gold left in various mines worldwide because fluctuations in the extraction rate at each site differ. Also, reporting results is not transparent. However, in 2022, the largest known remaining gold reserves on Earth were found in South Africa's South Deep gold mine.
It has around 1,025 tons (930 metric tons) of gold, second only to the newly discovered deposit. This new gold deposit could help alleviate China's issue since the country relies heavily on imported gold from Australia and South Africa. The entire deposit could supply China's needs for at least a year.
Why gold mining is so important to this day?
Although the world is changing and cryptocurrency is taking over, gold mining is still a major economic driver for many countries worldwide. This industry has played a significant role in the historical development of some countries like South Africa.
It continues to play a big role today, though not only on a macroeconomic level. Extracting gold from the crust of the earth has been a popular activity for centuries, dating back to the ancient civilizations of Rome and Egypt. Today, it provides numerous benefits to society[3].
One of the main benefits of gold mining is its contribution to the economy. The industry provides jobs for millions of people, from miners to engineers to logistics personnel. Also, gold mining generates revenue for governments via taxes and royalties. Based on data from the World Gold Council, in 2020 alone, the gold mining industry contributed over $170 billion to the global economy.
Gold is also a great investment asset since it offers interested parties opportunities to invest in and trade gold mining companies. Such investments hedge against inflation, making them attractive to investors seeking to diversify their portfolios.
Even in technologically advanced countries and in the age of new technology, the mining industry adapts to these advancements. Companies invest in research and development, improving the efficiency and safety of mining operations.
Innovations lead to the development of new technology, such as automated mining equipment and remote monitoring systems, which makes gold mining more productive. Although gold mining negatively impacts the environment, there are some benefits in this field, too.
Even such mining companies try to minimize their environmental impact through sustainable practices. These include using renewable energy sources, minimizing water consumption, and even reclaiming land to restore natural habitats. In some cases, these efforts can create new environments for wildlife, helping to support biodiversity. Businesses try to contribute to bettering society in many ways.
Gold mining can also bring social benefits to local communities. Mining companies often invest in infrastructure like roads, hospitals, and schools, and they may also offer residents education and job training programs.
These efforts can help boost the local economy, raising the standard of living for nearby communities. Gold mining provides more than just economic value. It is key in investment opportunities, technological progress, and sustainable development.
