Monday, May 20th 05:58 PM IST

China's 'Shanglin gang' sweeps Gold in Ghana

# Ghana gold  # Shanglin gang  # China gold  #   

Placer mining, in which gold is extracted from other materials using water, had been so challenging that many of the Shanglin gang's Chinese predecessors had failed.

ACCRA(BullionStreet): Unconfirmed reports said Chinese miners known as the “the Shanglin gang" have discovered gold worth more than 1 billion yuan in Ghana.

Nearly 50,000 shanglin gold diggers are working in Ghana at the moment but they're keeping their method a secret.

When the Shanglin villagers from a small town in China’s southern Guangxi province arrived in Ghana in 2005, larger sites for hard-rock gold mining had already been snapped up by international corporations.

They have started from scratch, ambitious high school dropouts and hard working laborers eager to trade their sweat for cash. They have made a fortune in the West African country in the past eight years by investing and working in small and medium-sized gold mines, said the report.

Placer mining, in which gold is extracted from other materials using water, had been so challenging that many of the Shanglin gang's Chinese predecessors had failed.

Workers from northern Heilongjiang and southern Hunan provinces who ahead of the Shanglin villagers failed to turn a profit due to outdated techniques that led to low efficiency, said the report.

Although placer deposits are harder to work with, they still contribute to 30 to 40 per cent of the total gold produced in Ghana.

The Shanglin gang, however, had a “killer” technique involving remodelled sand pumps, secret technology they have since kept to themselves.

This has revolutionised placer mining in Ghana and made the business hugely profitable. An average shop makes 100,000 yuan in gross profit daily, says the report citing a worker. Many operations thus easily make tens of millions yuan a year.

Working with local village heads and labourers, the gang quickly expanded their business. They have built more than 1,000 operations by investing more than 3 billion yuan, according to an estimate by a Shanglin investor. In fact, almost all of the smaller mines in Ghana are now controlled by the Shanglin gang.

An increasing number of Shanglin immigrants have even settled down there and married local women. Casinos have thrived as well because of their enthusiasm for gambling. Rumours are that some 20 per cent of the money earned by Shanglin people has been lost to gambling.

Life in Ghana, however, is far from a fairy tale. Shanglin workers say they are frequently threatened and robbed, if not harassed by corrupt local officials. On many occasions, they say they were able to buy their way out - but not always. In March, a Shanglin man died after being shot 27 times by a robber.

Ghana is Africa's largest producer of the metal after South Africa. Many have been lured to the foreign land after hearing friends and relatives' outrageous stories of their success.

After reading this article, people also read:

How about a fully featured Android App for your business?

Most Popular

Bullion Street Newsletter