The China Gold Association reported that domestic gold output increased 11.3% to a record of 312 tonnes last year, clinching the county’s position as world’s largest gold producer for the third year in a row.
China’s booming gold industry reported 138 billion yuan (US$20 billion) of gross industrial output value in 2009 — an increase of 19%, compared to the previous year.
Nearly 60% of China’s gold output last year came from the five producing province: Shandong, Henan, Jiangxi, Fujian, and Yunnan.
The ten largest gold firms produced 149 tonnes — 47.3% — of the country’s total output. China had more than 700 gold producers in 2009, down from more than 1,200 firms in 2002 as the industry consolidated.
The China Gold Association gave no figures for domestic gold demand. However, metals consultancy group GFMS said last month that it expects China to overtake India as the world’s largest gold consumer in 2009. Total Chinese demand is forecast to reach 432 tonnes as investors defy record bullion prices.
Luke Burgess
Editor, Wealth Daily
Investment Director, Hard Money Millionaire
