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Situation favourable in China for gold production
*** China has rich gold resources, ranking fifth after South Africa, the former Soviet Union, the United States and Canada ***
13EU1NG: It has been a golden year for China, literally. China's gold output In 1991 increased by 15.2 per cent over the previous year. It was the third year In a row that the annual growth rate of China s gold output surpassed 15 per cent.
The governmerft. as a rule, does not release Its total annual gold output. But a recent report In "Japan Economic News" claim* China s gold output in 1991 exceeded 100 ton* for the first time. This ranks China fifth among the world's major gold-producing countries.
The estimate may not be exactly right. But Xu Daquan, director of the State Gold Administration, declared at a recent national conference on gold production that China has become one of the leading gold producers tn the world.
The 1980* saw a gold rush following the gov emment's decision in 1978 to permit Individual and collective prospecting.
Things weren't exactly golden, with Mnug sling and rampant exploitation becoming serious in the mid-1980s. As a result, the national out-put began to slide, from a 14-16 per cent growth rate In 1985 and 1986 to only four per cent-by 1988.
To strengthen its control over gold production. the government in 1988 established the State Gold Administration. At the same time. It Introduced measures to stop gold smuggling,
ban individual panning raise the gold purchasing price, speed up prospecting, and allocate more funds for the expansion of large state owned gold mines.
Today, gold production is a glow — the gold output increased by 15.7 per cent in 1989 and by 17 per cent In 1990.
Geological surveys conducted in, recent years confirm that China has rich gold resources, ranking fifth after South Africa, the former Soviet Union, the United States and Canada. Chinese geologists have discovered more than 4.000 new gold deposits across the mainland. About one-third can be built Into large or medium-sized mines.
Currently, gold is being mined in more than 400 countries. The most iniportant gold bases are located in northwestern Shandong Peninsula, western Henan province in central
China. northern Heilongjiang province in the northcast, and the adjoining areas of Sichuan. Shaanxi, and Gansu provinces in the northwest.
China has 330 shaft and adit gold mines, 84 open-cast gold mines and 160 gold dredgers. Forty-three gold mines and 31 countries are now on the list of top gold producers, each producing more than 10.000 ounces a year.
Among the 43 mines, the largest is Linglong (also called Zhaoyuan). Last year, the mine produced 80,386 ounces of gold. But in processing capacity, the Sanshandao gold mine In Lafzhou Bay, by the Bohai Sea. ts the largest. It has a processing capacity of 1,500 tons of ore a day. Both the located in the northwest of Shandong Peninsula.
In 1991. Zhaoyuan, also on Shandong Peninsula, produced more than 200.000 ounces of gold, the highest output yet produced in a single county In China.
China started to construct nearly 200 gold . mines in recent years and most have been completed. In 199) alone, about 40 gold mines were completed.
For 1991-95. China s mining sector will Invest mainly in the expansion and renovation of existing gold mines.
These projects Include the mines tn Linglong. Xincheng and Cangshang. all on Shandong Peninsula. When completed, renova tfons of the Linglong mine will add a dally processing capacity of 440 tons of ore. Xincheng will double Its dally capacity to 1,250 tons. Cangshang will provide a capacity of more than 1,000 tons of ore a day - Depthnews Asia