THE MINERAL INDUSTRY OF CHINA 
in fact, a medium-size mine is already in operation. 
 China also has extensive and high-grade skarn copper deposits in the middle
and lower regions of* the Yangtze River and many other areas. Its better
known copper mines include Hungdoushan, north of Fuschun, Huadong at Chingyuan,
Tungbua in Jilin, and Tungguanshan in Anhui. None are large. For example,
Hungdoushan which produces 2,000 to 3,000 tons per day of ore containing
1.5% copper and 1% zinc. The medium-size Tungchuan underground copper mine
in Yunnan Province has been rejuvenated. A large copper-iron deposit. with
cobalt and precious metal values was discovered recently in the Dahungshan
area of Yunnan. The March 1978 issue of China Pictorial showed a photograph
of another medium-size copper mine, in the Fenghuang Hills of Tung-ling Hsien,
Anhui Province. A copper mine near Dayeh (Tayeh), Hubei, was producing about
3,000 tons of 1% copper ore per day. 
 While carrying out the program to acquire foreign smelters anddevelop domestic
mines, China was also continuing its efforts to import whatever copper is
necessary An agreement was signed with Chile in October 1978 to ~supply China
with 30,000 tons per year of copper over 3 years. For helping; develop the
Tintaya mine in Peru, China was scheduled to be repaid with. about 40,000
tons of copper annually plus 10,000 tons each of lead and zinc. Although
the Chinese were hoping to get steady if not expanded supplies of copper
(up to 50,000 tons per year) from. Africa through construction of the 1,100-mile
Tanzam Railway, political instability there may work against this. A 3-year
contract was signed with Papua!s Bougainville management in March 1978 to
supply China with 20,000 to 22,000 tons of copper concentrates annually.
A contract with the Philippines, agreed upon in November 1978, called for
60,000 tons per year of concentrates, basically to be bartered for Chinese
oil on a long-term basis. China received about 32,000 tons of the Philippines
copper concentrates in 1976 and 67,000 tons in 1977. China has had a commercial
problem with Philippine copper concentrates containing high gold values,
and the Philippines will have difficulty supplying China unless new mines
are developed. 
 Gold and Silver.—China has never been important as a gold or silver
producer, although the potential might be there, especially under high-price
conditions. How- 
247 
 
ever, there have been great accumulations of both metals since time immemorial
from local ores and placers plus imports of metals. The gold picture is brighter,
as many. rivers in Heilongjiang, Jilin, and Sichuan already together yield
100,000 to 200,000 ounces of placer gold per year. Sinkiang or Xinjiang seems
to have both placers and lode mines. In fact, gold activity has been reported
in widely scattered, areas~of the country, including Hunan, Guangxi, Henan,
Shandong, and Zhejiang. If enough large copper mines are eventually developed,
byproduct gold should be of~ consequence too. When China was on the silver
standard much silver was imported from Mexico in the early part of the 20th
Century. This supply and what was previously in circulation formed the basis
of silver ex ports to European markets in the 1950 s China s silver output
could become signifi cant if more nonferrous mines are devel oped in the
future 
 One of China s major sources of gold is the Zhaoye mine located in the northwest
em part of Jiaodong Peninsula in Shandong Province 13 This ancient lode mine
with copper sulfide ores and high gold silver values, is producing about
500 tons of öre per day There are three large mills and a number
of
small mills A recent survey has added about 250 tons of gold reserves to
what had previously been known at Zhaoye and more exploration work is taking
place Actually there are additional gold deposits nearby all located within
Zhaoyuan and Yexhan Counties 
 Heiongjiang's Heiho. gold mining bureau has various gold miné~—Kuntachi,
Fandaging, Liumaoho, and Hantashihchung— mainly in the Aihui, Huanan,
and Wulaga areas. A large gold-silver deposit reportedly has been found somewhere
in Zhejiang Province. China's foremost silver mine is located in Wesihangcheng,
He~an PrOvince.14 The Tehsing copper deposit apparently has fair amounts
of gold and silver. Liaoning, Jiangxi (Yinshañ mine), and Hebei
have
small lode gold mines. China recently ordered three 300-liter bucket dredges
from the Mining and Transport Engineering BV of Amsterdam for use in northern
China at a maximum dredging depth of 35 feet. The Chinese were also making
inquiries of a U.S. bank for credits to fmance gold operations. 
 Iron and Steel..—.The Chinese were jubilant about their 1978 and
1979
steel production, claiming various national records after successfully combating
the problem of the