China's Gold Production to Beat U.S., Challenging South Africa

Source:

"There's actually a good chance that Chinese gold mine production will surpass South Africa's in 2007," Philip Klapwijk, executive chairman of London-based researcher GFMS Ltd., said today by e-mail. "It's going to be a close call."

China will probably overtake the U.S. as the world's second-biggest gold producer this year and may end South Africa's century-long dominance within five years, the country's industry association said.

Production may rise 8 percent to 260 metric tons from 240.1 tons in 2006, Hou Huimin, deputy head of the China Gold Association, said in an interview in Shanghai yesterday. U.S. production should be about 250 tons this year, he added.

China's gold output has almost doubled in six years as companies, including Zhongjin Gold Corp. and Zijin Mining Group Co., benefit from private investment. The gold rush will help to meet surging domestic demand and may slow imports of the metal which traded at a 27-year high of $811.20 an ounce yesterday.

"There's actually a good chance that Chinese gold mine production will surpass South Africa's in 2007," Philip Klapwijk, executive chairman of London-based researcher GFMS Ltd., said today by e-mail. "It's going to be a close call."

Related Articles

Get Our Streetwise Reports Newsletter Free

A valid email address is required to subscribe