ruble against the dollar and the effects of
economic sanctions imposed by the rest of
the world over Russia's annexation of Crimea
from Ukraine have taken hold.
In an interview reported by
Bloomberg
last December, the chairman of the
Russian Union of Gold Producers, Sergey
Kashuba, predicted that new Chinese
investment may well prove to be a key to
helping the industry maintain its position.
"Chinese money may soon appear in
Russian gold mining," Kashuba was quot-
ed as saying. "Chinese gold miners have
skimmed off the cream at home so today
they're looking at Russia with interest. They
recognize that the ruble devaluation has
made mining in Russia more attractive."
The
Bloomberg article pointed out that
although China's gold output has achieved
spectacular growth over the past 10 or 12
years, according to a recent report by the
World Gold Council (WGC), its reserve base
cannot support current output levels. The
bulk of the country's production comes
from relatively small mines, with the report
quoting figures of more than 600 mines
involved in primary production, hence aver-
aging around 300 kg (9,650 oz) each per
year. On this basis, it is easy to see the
point that Kashuba was making, insofar as
a fair proportion of the "low-hanging fruit"
in China's gold deposits may already have
been picked.
Nonetheless, exploration continues, with
the announcement carried by
People's Daily
and elsewhere last November of the discov-
ery of a massive gold resource close to
Sanshan Island, off the coast of Shandong
province in eastern China. Gold mining is
already well-established in the area, with
Shandong Gold's Sanshandao underground
mine having been in operation since 1989.
Challenges for development include the
deposit's depth—2,000 m—and the fact
that it lies beneath the Bohai Sea.
African Drift
Among the leading world producers, South
Africa and Ghana both recorded lower out-
put in 2015 than in the previous year. In
Ghana's case, some of the shortfall can be
put down to AngoGold Ashanti's decision to
stop underground production at Obuasi,
with the aim of developing a complete
modernization plan for the mine. In
September, AngloGold and Randgold
MARCH 2016 • E&MJ; 31 www.e-mj.com
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