China claims to be one of the first countries to exploit gold in view of documentary evidence which shows that gold was dug over 4,000 years ago near Beijing. Wars continuously interrupted gold production up until 1949, when the People’s Rebublic of China was established, and it was possible to revive the goldmining industry. Since 1975, the pace of development has been encouraging. Production has increased each year by about 11 % and as a consequence, China has emerged as one of the leading gold producing countries in the world. Most of the gold is taken from underground mines, but in the providence of Huanan, huge dredgers which have been specially designed for the task, are an essential factor in the successful recovery of gold. Private mining is forbidden but the government will grant licences to individuals who wish to wash the “tailings” from the dredgers which are only able to handle 85 % of the raw material. Not only does panning the remaining 15 % provide an important means of earning a living of thousands of families, but it also ensures that the recovery process is 100 % efficient.