TJ,
Now I see through your nefarious plot!!! China is going to flood the world with gold, and pretty soon folks will be buying Pandas at Walmart...
China may take No. 1 position in gold output
en.ce.cn
Last Updated(Beijing Time):2007-09-14 13:35
China may become the world's largest gold producer this year, toppling South Africa's unbroken century-long run, London-based researcher GFMS Lt said yesterday.
South Africa's first-half production fell seven percent to 134 tons, while China's output jumped 18 percent to 129 tons, making the Asian nation the second-largest producer, GFMS said in a report. Last year, the United States held that spot, with China and Australia tied for third place.
"China's growth has been astounding," William Tankard, an analyst at GFMS in London, said in a phone interview with Bloomberg News. "South Africa will certainly never return to its previous dominance."
South Africa's gold production has declined almost a third since 2002 as workers dig as much as two miles underground for metal in aging mines. Production last year was the lowest since 1922, according to the industry group Chamber of Mines. The nation took over from the US as the biggest producer in 1905.
There is a "narrowing gap between South Africa, which has reigned supreme for just over a century, and China," GFMS said in the report. "The balance of probability could favor 'The Dragon' as the world's largest gold producer for the full year."
China's production usually gets a seasonal boost in the second half of the year, and new projects at Jinshan Gold Mines Inc, Eldorado Gold Corp and Sino Gold Mining Ltd will probably add to the gains into December, GFMS said.
"The likelihood is that no country will ever achieve what South Africa achieved at its peak production," Roger Baxter, an economist at the South African Chamber of Mines, said by phone from Johannesburg. The country produced more than 1,000 tons in 1970.
Mines in the African country have yielded about 50,000 tons over the past 121 years of officially recorded data, Baxter said. "That's more than 30 percent of all gold ever produced globally," he said.
A 45 percent increase in the rand price of the metal last year spurred companies to invest more in mines, slowing the decline in production by about half, Baxter said.
Gold traded at US$707.90 yesterday morning in London. There are about 32,154 troy ounces in a metric ton.
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