China recently announced the discovery of an undersea gold deposit, touted as the largest in Asia. This remarkable find further augments the existing troves of the precious metal, following other significant discoveries earlier this year.
The newly discovered gold deposit is situated off the coast of Laizhou in Yantai, Shandong Province. This addition has notably increased Laizhou’s confirmed gold reserves to over 3,900 tonnes (137.57 million ounces), making up approximately 26% of China’s total reserves. However, the exact size of this undersea deposit has not been disclosed by officials.
In the past month, the nation revealed the discovery of its first super-large, low-grade gold deposit in Liaoning province. The confirmed reserves of this find amount to 1,444.49 tonnes (50.95 million ounces). The Ministry of Natural Resources has stated that this is the largest single gold deposit found since the establishment of the People’s Republic of China in 1949.
Adding to this, officials also announced the discovery of a gold deposit in the Kunlun Mountains, near the western border of the Xinjiang Uygur autonomous region in November. This deposit is estimated to have reserves of more than 1,000 tonnes (35.27 million ounces).
In 2023, Shandong Province reported identifying approximately a quarter of the nation’s gold reserves, including over 3,500 tonnes (123.46 million ounces) on the Jiaodong Peninsula, which is recognized as the world’s third-largest gold mining belt.
Despite being the world’s largest producer of gold ore, producing 377 tonnes (13.3 million ounces) last year according to the China Gold Association, China trails behind South Africa, Australia, and Russia in terms of proven reserves.
China invested CNY115.99 billion (US$16.47 billion) in geological exploration last year. Since the initiation of its current five-year plan in 2021, the total investment in mineral exploration is nearing CNY450 billion. This has led to the discovery of 150 mineral deposits, as reported by the Ministry of Natural Resources.
These discoveries are expected to influence global gold prices which continue to rise, driven by currency fluctuations, geopolitical tensions, and hefty purchases by central banks, particularly in emerging markets looking to diversify their reserves.
Spot gold was trading at US$4,407 per ounce at the time of reporting, marking a 68% increase since the start of the year.
Where is the newly discovered undersea gold deposit located?
The undersea gold deposit has been discovered off the coast of Laizhou in Yantai, Shandong Province, China.
What is the significance of the recent gold discoveries in China?
These discoveries have considerably increased China’s total gold reserves and position it as one of the leading global producers of the precious metal.
How are these gold discoveries expected to influence global gold prices?
The recent discoveries are likely to impact global gold prices, which are already rising due to factors like currency volatility, geopolitical tensions, and heavy purchases by central banks.
