In yet another gold discovery, China has hit another jackpot with undersea yellow metal deposit off the coast of Laizhou, in Yantai in Shandong province.
The latest discovery marks the largest gold discovery in Asia when it comes to undersea deposits. The discovery in the Shandong province has taken the total proven reserves in Laizhou to more than 3,900 tonnes (137.57 million ounces) – about 26 per cent of the national total – ranking it top in both gold reserves and output in China, Yantai’s city government revealed the information this week at a conference reviewing its current five-year plan and outlining the next one. The authorities have so far not disclosed the actual size of the undersea gold deposit, the South China Morning Post report said. The discovery is the latest in a series of gold finds that suggest China’s gold reserves may be much larger than earlier estimates. Also Read: India's Neighbour Strikes Gold, Discovers Yellow Metal Worth Rs 7 Lakh Crore — World's Largest Treasure! Last month, China announced the discovery of its first super-large, low-grade gold deposit in the northeastern province of Liaoning. The deposit has confirmed reserves of 1,444.49 tonnes, which the Ministry of Natural Resources described as the largest single gold deposit found since the founding of the People’s Republic of China in 1949, the report further said. In November, officials also reported the discovery of a gold deposit in the Kunlun Mountains, near the western border of the Xinjiang Uygur autonomous region, with estimated reserves of more than 1,000 tonnes. Earlier, in November 2023, Shandong province said it had identified about one-fourth of China’s total gold reserves, including more than 3,500 tonnes on the Jiaodong Peninsula, home to the world’s third-largest gold mining belt, where Laizhou is located. According to the China Gold Association, China is the world’s largest producer of gold ore, with output reaching 377 tonnes last year. However, despite leading in production, China still trails countries such as South Africa, Australia and Russia in terms of proven gold reserves. Gold is widely seen as a hedge against currency fluctuations and financial risks, but it is also important for industrial uses, including electronics and aerospace manufacturing. China has been increasing its efforts in mineral exploration, with Chinese geologists using advanced technologies such as artificial intelligence, high-powered ground-penetrating radar, and mineral exploration satellites, according to official reports.
China Steps Up Mineral Exploration as Gold Prices Surge
China spent 115.99 billion yuan ($16.47 billion) on geological exploration last year, according to the Ministry of Natural Resources. Since the current five-year plan began in 2021, total spending on mineral exploration has reached nearly 450 billion yuan, leading to the discovery of around 150 mineral deposits, the ministry said.
The discoveries come at a time when global gold prices are rising sharply, driven by currency fluctuations, geopolitical tensions and strong buying by central banks, especially in emerging markets looking to diversify their reserves.
At midday on Friday, the spot price of gold was $4,338.3 an ounce.
