China has found a large gold reserve in Hunan province, which is estimated to be worth hundreds of billions of rupees. This discovery not only adds to China's mineral wealth but also serves as an economic strategy to help boost its struggling economy and strengthen its position on the global stage.

The resource is held by the Wangu gold mine in Pingjiang County, Hunan province, according to the South China Morning Post. Over 40 gold veins have been found in this mine, which lies less than 2,000 meters below the surface. The primary region of the mine now has 300.2 tonnes of total gold reserves, according to the Hunan Provincial Geological Institute. In addition, more than 1,000 tons of gold have been found in recently discovered reserves. These reserves are expected to be worth a total of 600 billion yuan, or roughly Rs 7 lakh crore.

Liu Yongjun, the vice president of the Hunan Provincial Geological Institute, called the discovery a big achievement for China's mineral exploration efforts. The Wangu mine has become one of China's key gold mining sites. Since 2020, the provincial government has spent over 100 million yuan (about Rs 115 crore) on mineral exploration in the area. The demand for gold has increased dramatically in China in recent years, mostly due to economic uncertainty. However, the central bank's decision to stop buying gold in May and the depreciation of the yuan are the two main reasons for the minor reduction in this demand. 

Gold prices have dropped as a result of this drop in demand. Notably, jewellery from well-known brands like Chow Tai Fook and Chow Sang Sang, which used to cost 820 yuan per gram, is now selling for 720 yuan (about Rs 8,300) in the retail market. China is working to build up its supply of important resources as part of its 2021-2025 development plan. In 2022, it increased spending on mineral exploration by 8% from the previous year, reaching 110.5 billion yuan (around Rs 1.27 lakh crore). This investment has helped grow its reserves of gold, as well as other key resources like oil, natural gas, and rare earth elements.