Friday, July 12th 03:05 PM IST

China's Gold hub hit by ethnic unrest

# China gold  # Xinjiang  # gold mining  # ethic unrest  

China has encouraged massive investment in the region that has produced double-digit economic growth in the province over the years.

BEIJING(BullionStreet): China's north western province Xinjiang is abundant in mineral resources but mining has been hit by recent deadly ethnic violences.

These latest incidents have clearly unnerved the mining community in the region. Xinjiang is one of the several provinces where there are comparatively complete species of mines.

China has encouraged massive investment in the region that has produced double-digit economic growth in the province over the years.

Xinjiang is home to a large Muslim Uighur community and violence focusing on its discontent had been confined recently to southern districts.

As China’s largest province, Xinjiang spans over 1.6 million square kilometres and amounts to one-sixth of China’s total land area.

Xinjiang reportedly has large mineral reserves including deposits of copper, gold, iron, lead, mica, platinum, silver, sulphur, tin and uranium.

It is this combination of strategic geography, natural resources and the quest for strategic depth and security that has made Xinjiang one of China’s most strategically important provinces.

As the major gold producers of China, Xinjiang has effectively boosted the country's gold production for eight consecutive years now.

The province, with a gold resource calculated to amount to 207.48 tonnes, has 28 metallogenic gold mine belts and over 600 gold mine sites.

Early this year, geological workers have discovered a large gold mine in with reserves of at least 53 tons. It is the second large gold mine discovered in the Ili Valley following one with gold reserves of 50 tons found in 1988.

Xinjiang is also home to plenty of diamonds as over 70 species of diamonds have been found in the province such as sapphire, beryl, jade seal, lotus stone, garnet, violet stone, which are well know throughout China and abroad.

To sum up, Xinjiang is one of the provinces with the most abundant mineral resources. Possessed of spacious future for further exploitation, it may be developed into base gold industry in the country.

However, the present situation has damaged its reputation despite Beijing’s assertions that international mining communities didn't have to bother about what happening in the region and assured safety to all.

How about a fully featured Android App for your business?

Bullion Street Newsletter