Growth and Development of China’s Gold Mining Industry
The unmined reserves of gold in China run deep. Towards the end of the year 2017, the reserves of gold and gold resources were around 13,195 tons. This is a substantial figure, along with a yearly increase of 8.45%.
Having taken over South Africa in 2007, China has successfully managed to establish itself as a world leader in the supply of gold. China has been the biggest producer of gold for 11 successive years and managed to produce a total of 426.12 tonnes of gold in 2017. This amount was 13% more than the international market.
The exploration and production of gold is happening in nearly 3389 gold mining areas. These areas for exploration and production are managed by more than 400 companies. Some of the most prominent names among these companies are Shandong Gold and Zijin Mining Group.
The success of China’s gold mining industry doesn’t depend solely on acquisitions. This industry knows how to stay in tune with the latest innovation and market trends in gold mining. With the passage of time, the Chinese gold mining industry has managed to cover the whole supply chain. Areas like exploration, production, supply, sales, and investment are encompassed in this value chain.
Today, the majority of large gold mining companies like Shandong Gold and Zijin Mining Group are looking for ways to expand their businesses and maximize their growth.
As the technological advancements take place, China’s gold mining industry is yet to grow. However some drastic steps need to be taken in this regard.
First, the mining companies should invest money in exploration and cultivation of resources for the improvement of reserves. This step will ensure sustainable growth of this industry as a whole.
Secondly, this industry is in dire need of major structural reforms. The businesses that fail to perform should be shut down immediately. Furthermore, there needs to be a reduction in inefficient supplies. There should also be an increase in environmental considerations and improvement in risk management policies. The companies should keep an eye out on the advancement happening locally and on the global landscape.
Thirdly, the industry needs to invest in human resources, research and development, and sustainability. These are some of the key issues that need to be tackled by the industry collectively.
China’s gold industry is already in a commanding position, but it can get better if the above-mentioned steps are followed by the decision-makers. Increased focus on international advancements, social responsibility, and environmental management will allow this industry to establish itself as a true market leader.