A huge gold reserve has been found in China’s Hunan province. The estimated value of this huge reserve is hundreds of billions of rupees. Finding gold reserves will provide a big support to China’s crumbling economy. According to sources, there is a gold mine in Pingjiang County of Hunan province, named Wangu. More than 40 gold veins have been discovered inside this gold mine. This mine is located at a depth of less than 2,000 meters of the ground. According to the Hunan Provincial Geological Institute, the total gold reserves in the main area of the mine are now up to 300.2 tonnes.
At the same time, the newly discovered reserves contain more than 1,000 tonnes of gold, the total value of which is estimated to be around 600 billion yuan (about seven lakh crore rupees).
Liu Yongjun, Vice President of the Hunan Provincial Geological Institute, has described it as a major success of China’s mineral exploration strategy. Wangu mine has already been one of China’s most important gold mining centers. Since 2020, the provincial government has invested more than 100 million yuan (about Rs 115 crore) for mineral exploration in this area.
In recent years, due to economic uncertainties, there has been a surge in demand for gold in China. However, this demand has declined slightly due to the central bank stopping gold purchases in May and the weakness of the yuan. Gold prices have also fallen.
In the retail market, jewelry from famous companies like Chow Tai Fook and Chow Sang Sang is now selling at 720 yuan (about Rs 8,300) per gram, up from 820 yuan earlier. China is focusing on increasing domestic reserves of strategic resources under the 2021-2025 development plan. Investment in mineral exploration in 2022 has increased by eight percent year-on-year to 110.5 billion yuan (about Rs 1.27 lakh crore).
