Gold Output Up in 2011

(Beijing) – Chinese gold companies dug into more of the precious yellow metal last year, putting the country as the largest in terms of gold production for the fifth year in a row.

Total gold output by Chinese gold companies in 2011 hit 361 tons, increasing 5.9 percent from a year earlier, according to figures released by the Ministry of Industry and Information Technology on February 2.

From January to December in 2011, the gold output by China's ten largest companies was 184 tons, up 9.7 percent year-on-year, and accounted for 51 percent of market share nationwide.

Total revenue by Chinese gold companies surged to 29.8 billion yuan between January and November in 2011, up 35.7 percent compared to the same period last year.

Gold prices remained high throughout 2011. Last year, the international gold spot price opened low at US$ 1,421 per ounce, with US$ 1,565 per ounce as the highest trading price. Throughout the whole year, the average gold spot price was US$ 1,572 per ounce.

MIIT said that entering the fourth quarter of 2011, gold prices on the international market declined on the strength of the U.S. dollar.

As the global economy has continued to deteriorate, gold prices are set to bounce back and domestic gold prices will also fluctuate accordingly, said MIIT.

Domestic gold prices increased for the first time coming into the new year. The price of pure gold jumped from 409 per gram to 418 per gram under the impact of the international gold price.