The world’s top gold mines are all but wiped out as China’s economic slowdown continues, according to new research from the UK’s Royal Society.
The RSPB says the gold mining sector is being shuttered in China due to “fears that the economy will implode in a downturn”.
The research, published today, comes as China moves to shut down its most productive gold mines.
Gold miners have been complaining about a decline in revenue since the year 2000, with some mining operations struggling to pay salaries and pensioners struggling to survive on less-than-ideal pay.
Gold is a key element in China’s financial stability and the world’s most valuable asset, according a survey by the World Bank.
However, the research found the goldmining sector is facing severe challenges in the mining sector.
“Despite these difficulties, China has a massive, albeit unquantifiable, mining industry, and the gold industry is a major component of that industry,” said the RSPb.
According to the RPSB, China’s gold mining industry accounts for more than half of the country’s gross domestic product.
It says the government is now moving to close down some mines as it tries to boost domestic demand for gold.
In 2017, the government shut down about a third of China’s mining operations, which means China’s total gold reserves are now smaller than at any point since 1998.
Meanwhile, there are now fewer mines to mine gold than at the height of the crisis in 2008, according the RSPA.
At the time, the number of gold mines was down to about 1,000.
The RPSA says the closure of mines, which has caused a significant reduction in gold production in China, is also likely to cause a drop in the price of gold, which is a commodity with high demand in China.
“This could have a knock-on effect on gold prices in the long term,” the RPA said.
Some mining companies have also shut down in recent years, including the Chinese mining giant Sinopec, which stopped operating in the mid-1990s, and Beijing-based giant Sinohydro, which closed its operations in the early 2000s.
But the RSMB said the gold mines in China are still the largest in the world, with the world largest reserves.
So the Rspb says the shutdown of the world ‘most productive’ gold mines is likely to have a significant impact on the world economy.
Read more about the RsuB:The Rspa also says there is a growing number of smaller gold mines across China that are struggling to keep up with demand, which could lead to a downturn in the sector.