China still only world's No. 2 gold producer – but aiming for the top spot (Source: Mineweb)

Preliminary gold production figures from China suggest that it has not yet quite overtaken South Africa as the World's largest gold producer, but that day is not far away.

Author: Dorothy Kosich
Posted: Wednesday , 30 Jan 2008

RENO, NV -

The Vice Secretary General of the China Gold Association said Tuesday that the nation's 12.67% increase in gold production to 270.49 tonnes last year was a record, but still not enough to surpass the world's top gold producer South Africa.

The countries had been neck-to-neck in gold production for the second half of 2007, prompting GFMS to estimate that China had already become the world's largest gold producer. However, China's gold output was just short of South Africa's 272 tonnes, although South African gold production was impacted by declining ore grades, power cuts, accidents, and increased labor costs.

According to China's National Development and Reform Commission, China's gold production has increased 34.845 tonnes during the past five years. The commission said five major gold deposits were discovered in China last year, while other traditional large gold producers, including South Africa, the United States and Australia, have reduced their gold output in recent years.

Within the past year, junior miners China Goldmines plc (LSE: CGM), Jinshan Gold Mines Inc (TSX: JIN), a Robert Friedland company, and Australia's Sino Gold Ltd (ASX: SGX) have all commenced commercial gold production in China.