China reports largest gold discovery in more than seven decades

China’s Ministry of Natural Resources confirmed the discovery of the Dadonggou deposit on Friday. This is the largest single gold find reported in the country since the founding of the People’s Republic in 1949. Officials say the site contains an estimated 2.586 million tonnes of ore with an average grade of 0.56 grams per tonne, amounting to around 1,444 tonnes of gold.

At current prices, that volume of gold is worth more than €166bn. Gold has reached record levels this year, trading at more than €115,000 per kilogram.

The project was carried out by the state-run Liaoning Geological and Mining Group, which deployed nearly 1,000 technicians and workers and completed the exploration in just 15 months — an unusually short period for a deposit of this size.

The ministry has described the find as “ultra-large” but low-grade, and said it has already passed an initial economic feasibility assessment.

However, authorities have not disclosed the precise location of the site beyond confirming it is in eastern Liaoning province, prompting speculation about the strategic considerations behind the limited disclosure.

A safe-haven asset in turbulent times

The discovery comes during a period of surging demand for gold. Prices have risen by more than 50% this year, fuelled by a weaker dollar, geopolitical tensions and strong buying by central banks — particularly in emerging economies looking to diversify their reserves.

China has accelerated its mineral exploration efforts in recent years. In 2024, officials reported the discovery of a deposit of more than 1,000 tonnes in Hunan province, and another of over 40 tonnes in Gansu in October. The country produced 377.24 tonnes of gold in 2024, a 0.56% increase on the previous year.

Domestic consumption reached 985.31 tonnes in 2024, with demand for bars and coins rising by more than 24% year-on-year. Analysts say the trend reflects growing interest among China’s expanding middle class in safeguarding wealth amid global economic uncertainty — making gold an increasingly popular safe-haven asset across the country.