All That Glitters is Gold: China's huge gold deposit in Shandong worth $3 billion

A “super-large” gold deposit has been found in eastern China’s Shandong province.

Global Times reported citing China Media Group article that around 50 tonnes of the reserve have been discovered at the Xilaokou gold mine in Shandong’s rural Rushan city.

So far, this is the largest deposit discovered this year in the country.

Let’s take a closer look.

What was discovered?

According to the Shandong Provincial Bureau of Geology and Mineral Resources, the Xilaokou gold mine has become the “largest known gold deposit” in the region, reported China‘s Global Times.

This comes after eight years of prospecting – an activity in which many techniques are employed in the search for a mineral deposit.

The deposit, which covers a large area, consists of high-quality gold ore that is easy to mine and refine, as per CGTN.

“The prospectors drilled more than 250 holes as deep as 1,400 meters to find the deposit,” Zhou Mingling, deputy head of the 6th Geological Brigade at the Shandong Provincial Bureau, told local media Dazhong Daily.

This deposit will aid the country in increasing its gold reserves and “support” its “self-sufficiency in critical resources”, China Media Group said, as per Global Times.

As per CGTN, the deposit at Xilaokou gold mine is worth $3 billion at the current market price.

The government estimates that this deposit can produce 2,000 tonnes of gold ores for at least two decades, the report added.

Shandong province, with the biggest gold reserves, is the largest producer of the metal in China, noted Global Times.

China’s gold reserves

China has been expanding its gold reserves and output in the wake of the global economic crisis and geopolitical instability.

According to People’s Bank of China, China’s central bank, the Asian giant’s gold reserves were at 65.92 million ounces (1,869 tonnes) by February end, reported Global Times.

Jiaojia gold mine in Shandong province produced 10 tonnes of gold – the highest across the country – in 2022, says China Gold Association (CGA).

CGA data also showed that China’s gold output touched 372.05 tonnes last year, a surge of 13.09 per cent year-on-year.

The gold consumption in the country stood at 1,001.74 tonnes in 2022, a decrease of 10.63 per cent year-on-year, Global Times reported citing CGA data.

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Countries with the largest gold reserves

According to the World Gold Council, as of December 2021, the United States has the largest gold reserves in the world – 8,133 tonnes valued at more than $474 billion.

Germany with over 3,355 tonnes of gold reserves ranks second and Italy has the third largest gold reserves (2,452 tonnes) in the world.

With 2,436 tonnes of gold reserves, France stands fourth, followed by Russia (2,299 tonnes) and China (2,010 tonnes), as per CNBC TV 18 report.

Switzerland has 1,040 tonnes of gold reserves, which are valued at over $60 billion and account for 6.68 percent of the total reserves in the country, the report added.

Japan has 846 tonnes of gold reserves, making it eighth largest in the world.

The Reserve Bank of India, India’s central bank, has 787.40 tonnes of gold reserves. The gold reserves in India are valued at around $45 billion.

With 612 tonnes of gold reserves, The Netherlands stands at the 10th rank.

Notably, the European Central Bank, the central bank of 19 countries in the euro area, has 504.77 tonnes of gold reserves. However, these do not belong to any single nation, noted CNBC TV 18. 

Largest gold producers

With 399.7 tonnes, China was the world’s largest gold-producing country in 2021 and accounted for 9 per cent of global volume, says World Gold Council.

Australia was the second-largest gold producer in the world with 312 tonnes, followed by Russia (282 tonnes) and the US (253 tonnes).

The other largest gold producers in the world are – Canada (193 tonnes), Indonesia (190 tonnes), Peru (155 tonnes), South Africa (124 tonnes), Mexico (122 tonnes) and Ghana (102 tonnes), as per World Gold Council.

With inputs from agencies

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