China Gold Output Exceeds 300 Tons

China’s gold output soared 11.34 percent to a record 313.98 tonnes in 2009, maintaining its No.1 rank as the world’s biggest producer of the precious metal, reports the China Mineral Company.  This was the first time that China’s gold output had climbed above 300 tons, and established a new record in the process. China’s booming domestic gold sector reported 137.53 billion yuan (20.14 billion U.S. dollars) of gross industrial output value in 2009, an increase of 18.56 percent year on year, according to latest statistics from China Gold Association.

Who were the main beneficiaries of this growth? Zhongjin Gold Corp. Shandong Gold, and the China Mineral Company are primary gold companies. In 2007, for example, Zhongjin Gold Corp. mined and processed 70.95 metric tons of standard gold and another 4.68 metric tons of mineral gold. All three have recorded substantial gains.

In global financial news, precious metals are trading lower on COMEX in early trades today against the backdrop of sharp appreciation in the dollar overseas. Tad Brooks of the China Mineral Company expects this complex to remain under pressure during the day. However, the downside may be capped on the slight fall in the dollar on the back of expectations of strong manufacturing data from Euro zone and the US.