How China plans to boost domestic gold production by more than 5%

China aims to boost gold production over the next three years by adopting advanced mining technologies and excavating deeper, as global demand for the precious metal rises amid intensifying geopolitical uncertainty.

In the “2025-2027 Gold Industry Development Action Plan” released on June 23, the Ministry of Industry and Information Technology, along with eight other agencies, outlined goals to expand China’s gold reserves by 5 to 10 percent and increase gold production by more than 5 percent.

“Gold is a strategic mineral resource that carries both commodity and monetary properties, and it plays a critical role in ensuring national industrial and financial stability,” the ministry said in a statement published on its website.

However, it noted that China’s gold industry continues to face major hurdles, including inadequate resource security and challenges in meeting the needs of critical technologies.

“The action plan aims to drive high-quality development and enhance the safety of the gold industry at a high level,” the statement added.

China has maintained its position as the world’s largest gold consumer for 12 consecutive years, according to the China Gold Association as cited by the South China Morning Post, which reported total consumption of 985.31 tonnes in 2023. Last year’s production reached 377.24 tonnes, securing China’s title as the top global producer for the 18th year running.

Despite this, the article points out that the world’s second-largest economy relies heavily on imports to close the gap between domestic output and consumption. In April, gold imports surged to 127.5 tonnes, the highest level in 11 months, based on customs data.

As of the end of May, the People’s Bank of China held 2,296.37 tonnes in gold reserves, having increased its holdings for seven straight months.

The new action plan sets a goal for over 70 percent of national gold-processing capacity to come from operations that handle more than 500 tonnes of ore daily.

To enhance production, it calls for intensified exploration in China’s western regions, extending the lifespan of current mines, increasing their output, and developing new mining projects.

The plan also advocates for more recycling efforts, as well as adopting new technologies and equipment suited for mining at depths beyond 2,000 metres. It also highlights the importance of implementing cyanide-free gold extraction methods to grow the country’s reserves.

By Nazrin Sadigova