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Active Projects in China

Mining in China

The history of gold mining in China parallels its long and rich history as a developing and growing economy. With the gigantic strides in its population growth and the associated livelihood requirements of its citizens at the center of all Central Committee Programs, the Republic has engaged substantially in exploration and extracting operations for gold as well as other mineral products in recent years.

In 2007, the P.R.C. became the world’s leading gold producer, overtaking the Republic of South Africa’s 272-ton production with its 276 tons (9.7 million ounces) output, a 12% increase from the previous year. South Africa had held the top position since 1905 but its output has dwindled due to high production costs and depleted reserves. China is also now the largest buyer of gold stocks. As a result, the Chinese people are also rapidly taking over the people of India as the most active gold-owning citizenry in the world.

The graph below shows how rapidly the gold production in China has accelerated in recent years:

Mining in China

With the increasing demand for physical gold product, most observers believe that this rapid rise in gold production will continue. The existing high prices for the mineral have made many newcomers in the mining industry reap significant revenues in their ventures. With present prices over $1,340 per ounce and expected to rise even more by middle of 2014, ARUN Minerals has been benefitting from the rising trend in value to our production from ongoing operations in the P.R.C. and utilizing the proceeds for additional expansion of our two exploratory areas. ARUN Minerals’ operations exist within the five Provinces of China where 60% of the Republic’s gold mining thrusts are commercially undertaken, namely: Henan, Jiangxi, Fujian, Yunnan and Shandong.

At present, ARUN Minerals has two fully functional mining ventures situated in both Jiangxi and Yunnan Provinces, with two more fields progressing from the late stages of exploration within Henan and Shandong Provinces.

  • Jiangxi Province

    Project Details

    The jewel in the crown for ARUN Minerals is our open-cut mining operation in Jiangxi, which achieved its peak performance last year, producing 400,000 ounces of product at a rate of 4.675 g/t. Benefitting largely in part from lower wage costs in the Province, this was attained at a cost of $683 per ounce, substantially below the world median cost in 2012 of $928 per ounce. ARUN Minerals hopes to extract an estimated reserve of 3.9 million ounces on top of the existing output.

    Location

    Jiangxi Province, traditionally known as a wealthy area, is located in the southeast portion of the P.R.C. and runs from south of the Yangtze River down the magnificent Gan River Basin. It is considered one of China’s oldest known trading routes but eventually gave up that special role when trading with western countries opened up treaty ports in China in the mid-19th century. As of 2011, 44.5 million people called the Province home and helped to generate a GDP of some $183.8 billion.

    Overview

    The economy of Jiangxi Province is not as large as those of some of its neighbors to the east, and relies primarily on mining and agriculture. The main crops grown in Jiangxi include rice, cotton and kumquats. The Province is, however, considered one of the largest holders of mineral deposits in the P.R.C., with reserves of gold, tungsten, copper and uranium among others.

  • Yunnan Province

    Project Details

    Expansion of ARUN Minerals’ gold operations, likewise, continues at the Yunnan site with an additional shaft to be functional very soon by April 2014. Output is estimated to reach 180,000 ounces in the first year of the shaft’s service, increasing to the level of performance and output of existing shafts by the middle of next year.

    Location

    Yunnan Province is situated in China’s remotest southwest portion and is bordered to the south by Burma, Laos and Vietnam. This mountainous region also contains potential sources of aluminum, copper, zinc, tin and nickel. Due to its rugged topography, only 5% of its total area is flat and arable land, mainly producing rice, tobacco, corn and other crops. The Province contains a population of 46.31 million people and contributed to China’s economy with a GDP of $138.9 billion in 2011.

    Overview

    ARUN Minerals’ existing gold production in the Yunnan Province involves an underground mine operation, which produced 273,000 ounces of gold of a rate of 4.67 g/t in 2013. It is estimated by geologic surveys that reserves at the site could reach to 2.85 million ounces.

  • Shandong Province

    Project Details

    ARUN Minerals’ gold-mining operation in Shandong Province is targeted to comprise of two underground closed mines with an estimated output of 1.85 million ounces already accounted for. Additional exploration and investigation will be resumed eventually to pinpoint other potential reserves within the range of the operating license and, if viable, a permit will be secured to commence with recovery operations likewise.

    Location

    Shandong is located at the northeast portion of China, bordered by Henan Province to the West. It is one of the most mineral-rich Provinces in China and is home to a multitude of diverse mining concerns and serious investment in infrastructure projects has helped develop the industry and the whole Province over the last decade.

    The Province’s main agricultural products are sorghum, maize and wheat. Next to its contribution through agriculture is its wine-making industry with about 140 wineries producing 40% of the country’s grape wine output. The Province is home to China’s 2nd largest population at 95.7 million people and contributed a GDP of $803 billion in 2012.

    Overview

    ARUN Minerals’ Shandong field presently has had its exploratory and grading investigation finished and will commence the first of its targeted two underground mines in May of 2014 once it acquires the operational licenses from the P.R.C Government. Estimated gold yield of ore grade samples for the Shandong field stands at 1.876 g/t.