According to the report, the deposit was recently found in the town of Xilaokou after eight years of exploratory work and its volume will help expand the country’s reserves.
Shandong is one of the main gold regions in China, in 2017 it found in its soil a deposit with 550 tons and a value of more than 150 billion yuan (about 22 billion dollars).
Following that discovery, the government set out to increase annual gold production from 450 to 500 tons per year.
China is the world’s largest market for the metal in terms of both production and consumption.
However, in 2022, demand decreased by 10.6 percent, in a context marked by the international increase in the price of the precious metal, the persistence of the Covid-19 pandemic and low domestic sales. Analysts also mentioned the impact of the continuous decrease in the number of marriages and births, occasions when Chinese citizens traditionally acquire gold pieces as gifts.
Meanwhile, the National Industry Association detailed that this is the third consecutive drop since 2016 and implied declines in jewelry purchases (8.1 points), and bullion and coins (17.2 points).
However, production of the gold metal increased by more than 13 percent.