China will probably overtake the United States as the world's second-biggest gold producer this year and is moving closer to ending South Africa's century-long dominance, the country's industry association said.

 

Production may rise eight percent to a record 260 metric tons from 240 tons in 2006, Hou Huimin, deputy head of the China Gold Association, said in an interview in Shanghai yesterday. US output should be about 250 tons this year, he added. Increased production will help firms including Zhongjin Gold Corp and Zijin Mining Group meet China's surging demand for gold as jewelry and as an investment, reducing the need for imports. Output doubled since 2002, accelerating this year as prices climbed above US$800 an ounce to a 27-year high.

 

(Shanghai Daily November 7, 2007)