A new gold find in central China’s Hunan province is expected to hold over 1,000 tonnes of gold, worth an estimated US$83 billion, enhancing the country’s mining prospects

In a major development for China’s mining industry, the Geological Bureau of Hunan has announced the discovery of a vast gold deposit in the central province of Hunan, with an estimated value of US$83 billion. The gold was found in Pingjiang County, beneath the Wangu gold field, located approximately 2,000 metres below the surface. The discovery has sent ripples through the global mining community, as initial reports suggest that the reserves could exceed 1,000 tonnes.

The breakthrough comes as part of China’s ongoing efforts to tap into its mineral resources using cutting-edge technologies, including 3D geological modelling. The new methods have significantly improved the country’s ability to locate and assess ore deposits at greater depths. According to Xinhua, the state-owned news agency, the gold veins span a large area, with more than 40 veins identified, indicating a potentially massive long-term resource for China.

In addition to the core discovery, exploration around the site’s peripheral areas has revealed more gold deposits, suggesting that further exploration could yield even greater finds. This discovery is seen as a significant boost to China’s already robust gold production, which accounted for nearly 10% of global output in 2023. However, despite being the world’s largest producer of gold, China has increasingly found it necessary to import gold to meet rising domestic demand, making the Hunan discovery even more crucial for the nation’s economic and strategic interests.

The estimated value of the new gold reserves, pegged at US$83 billion, adds another layer of importance to the find. As the global demand for gold continues to grow, especially in the wake of economic uncertainties and inflation concerns, China’s newfound gold reserves may not only provide economic benefits but also enhance its geopolitical position in the global commodities market.

This discovery is expected to accelerate mining activity in Hunan, which could lead to new jobs, infrastructure development, and an influx of investment into the region. The potential economic windfall is seen as a positive development for the province, which has been working to diversify its industrial base and attract further investment.

With the use of advanced technologies like 3D geological modelling, China is positioning itself to unlock previously inaccessible mineral wealth. As exploration continues and mining operations expand, the full scale of the Hunan gold deposit could continue to grow, positioning China as an even more dominant player in the global gold market.