World gold prices have soared recently amid financial fears. While you might expect this to mean more output, some Chinese mining firms have a different approach--working lower grade ore.
(Tibetan: Yulshul) in Qinghai Province will likely become one of Asia’s largest goldmines, with proven reserves of 300 tonnes, in 2015, reported China’s official Xinhua news agency Aug 27, citing provincial land and resource officials.
The report said the geological exploration was conducted jointly by Qinghai geology and mineral exploration and development bureau and a Canadian mining company with a total investment of 200 million yuan (US $31.3 million).
Noting that Qinghai was endowed with rich mineral resources, the report said the proven gold reserves of the province's six mines, including Dachang, was 430 tonnes.
The gold price is hovering near the $2,000 range, as global finance markets remain unstable. For many world mining operations, this has meant something of a golden age. The law of supply and demand dictates that as gold is worth more, there will be greater efforts to boost output and take advantage of the price conditions.
But things are different in the east Chinese city of Zhaoyuan. It's known as the country's gold capital for its abundant deposits. One small privately-owned gold mine here is estimated to produce some 350 kilograms of gold a year, out of 120 tons of gold ore explored every day.
Production has stayed stable despite the recent price jumps—like some other Chinese gold mines, Zhaoyuan's are keeping output steady, by expanding operations into lower grade ore.
[Hao Zengbao, Zhaoyuan Gold Administrator]:
"This is a resource-type enterprise, as gold mines have their own limited service life spans, and mining exploration usually has to expand year by year, so as to make exploration and mining balanced."
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