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China discovers five major deposits

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Bloomberg Mumbai
Last Updated : Jan 29 2013 | 12:59 AM IST

The Yangshan deposit in Gansu province, or northwestern China, has resources of 308 metric tonnes, the largest in the country, according to a presentation by Hou Huimin, deputy director of the association, at the 5th Shanghai Derivatives Market Forum.

China's demand for gold jumped 23 per cent in 2007, making it the world's second-largest consumer, as a booming economy spurs jewellery purchases.

The Chinese "have shown increased interest in investing in physical gold,'' Hou said in an interview. The other four discoveries are the Gandise copper-gold deposit in Tibet, Dacheng gold deposit in Qinghai, Sizhuang in eastern Shandong province and Baolun in southern Hainan province, Hou said in the presentation.

China's total gold resource is between 15,000 and 20,000 tonnes, the association said on Wednesday. Production of bullion in the first two months of the year was 38.2 tonnes, the association also said, without giving a comparison from a year earlier.

China may overtake South Africa as the world's biggest gold producer this year, state-run Xinhua News Agency said on April 30.

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Hou on Wednesday said Chinese output may exceed 300 tons this year.

China is already the world's largest producer of the bullion with output of 276 tonnes last year, according to GFMS. South Africa produced 254.7 tonnes, the Chamber of Mines of South Africa said in March. The gap may widen this year after a national power shortage cut electricity supplies to mining companies in South Africa.

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First Published: May 29 2008 | 12:00 AM IST

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