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China Gold Mining

China happens to be the world's third largest producer of gold after South Africa and Australia. This statistics are however disputable if recent records are to be considered. Over the past two years, gold production in china has overtaken former leading countries such as South Africa and Australia. This recent productions have seen the Chinese take the leading slot in as far as gold production is concerned. As the South African government introduced more stringent rules on gold mining the Chinese have taken the advantage to increase their production over the last few years. As South Africa's production declined by a whopping 50%, the Chinese production took the opposite direction registering a 70% increase over the last decade.

The massive increase in production could perhaps be attributed to the influx of gold mine investors who have fled from strict rules in other economies like South Africa and set up camp in China. Their aggressive efforts must have played an instrumental role in the new gold discoveries that have continued to see Chinese gold production increase at high speeds.

The Chinese gold mining industry is not a young one as it dates back to the Song dynasty some centuries back. It has nonetheless not been able to exploit the full potential of the sector for quite a long time. This was perhaps due to their poor organizational skills as well as the small units in which they operated. Most Chinese miners always masqueraded as individuals or as tiny companies that could not compete favorably in the world class. It was not until recent years that the Chinese government decided to advise the small holder companies to merge or consolidate in order to form outfits that could feature in the world gold arena. It has also tried to encourage foreign companies to set up plants in the country with the view that most Chinese investors may be able to merge with the foreigners and to learn a few management tricks from them.

China so far boasts of the world's largest population and subsequently the world's cheapest human labor force. This factor must be playing a major role in the rapid growth of not only the gold mining industry in chine but other sectors as well. Another factor that may contribute to the increased production of gold in china could be the large number of foreign investors from countries such as Canada who have increased their input into the gold mining sector of china.

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