China tops world in gold output in 2010

BEIJING:China, world’s largest gold producer since in 2007, retained its position again in 2010 by mining 340.88 tonnes yellow metal, up 8.57 per cent year on year, the China Gold Association (CGA) said.Increases in gold output will help China hedge against financial risks and inflation, as well as maintain economic security, the CGA said.The number of domestic gold producers shrank to around 700 at the end of 2010, from 1,200 in 2002, through mergers and acquisitions. At present, China’s top ten producers account for 49.19 per cent of the total gold output.Production is concentrated in five provinces, including Shandong, Henan, Jiangxi, Yunnan, and Fujian, which account for 59.82 per cent of total output.Violent movements in asset prices caused by the financial crisis boosted Chinese investors’ demands for gold as a safe haven. The yearly average gold price jumped 25.6 per cent from one year earlier to 1,224.53 U.S. dollars per ounce – APP