Despite China's official ban on mining gold in Beijing, 
illegal mining activities has still been a hot underground business, 
with some earning as much as 10,000 yuan (US$1,600) by selling the ore, 
reports our sister paper Want Daily.
The gold mines are believed to be located in a remote mountainous 
area in eastern Beijing's Pinggu district. Gold mining there has been 
the major economic activity in the region from the time occupying 
Japanese troops discovered the ore during the Second Sino-Japanese War 
until 2003, when the government banned it and blew up the pits with 
dynamite. Some locals, however, went back and have since found their way
 into the underground tunnels.
A ton of the ore can be refined into three to ten grams of pure gold.
 One could sell the ore at a price equivalent to 10% off the market gold
 price, the report said.
Investigative reporters from the Beijing News disguised as gold 
buyers learned that 80% of the mine is controlled by someone dubbed 
"Dapi." Dapi, who paved two roads into the mines, admitted when being 
asked about the business he is running that all the mining activity 
there is illegal. "I do it because I can," he said.
Everyone in the region knows that the trucks that come and go are 
there to load the ore. "It's only the officials and the mine-reservation
 personnel that are unaware of it," possibly because Dapi has taken care
 of all the knots, the report suggests. 
The high margin of the business comes with high risks, however. In 
2004, a number of villagers fell into the pit accidentally and died when
 they attempted to blow open an entrance into the mine. In 2006, four 
villagers were trapped in a collapsed mine pit when they tried to sneak 
in for the ore. The "gold rush" also brought silicosis to the region. 
Many middle-aged men in the nearby area suffer the effects of the 
disease, the report said. 
 
 
 
