China became the world’s biggest producer of gold last year, overtaking South Africa, which held top spot for 100 years, independent precious-metals consultancy GFMS said on Wednesday.
Meanwhile, the price of gold was on course to reach a record high of $1 100 an ounce in 2008 amid global financial turbulence, the respected research group added in its latest annual Gold Survey.
Gold struck an all-time peak of $1 032,70 an ounce on March 17, four days after the yellow metal breached $1 000 for the first time.
“Global mine production fell by a slight 0,4% in 2007 to an eleven-year low,” GFMS said in its report, published Wednesday.
“Africa saw the heaviest regional drop at 29 tonnes — chiefly due to South Africa — while output in North America and Latin America also fell … In contrast, Asia saw gains, centred on Indonesia and China, with the latter becoming the world’s leading gold producer in 2007,” it added.
GFMS chairperson Philip Klapwijk said China was expected to consolidate its lead in 2008, “primarily as a result of further declines expected in South Africa due to its ongoing power-supply issues”.
GFMS forecast that global mine production in 2008 would be “broadly in line” with last year’s level.
The consultancy added: “Of note [in 2007] was the fact that China posted a 33-tonne rise [in gold output] to become the top global performer, overtaking South Africa’s century-long position as the world’s leading gold producer.”
Gold prices have won strong support this year from supply problems in South Africa. Stoppages by miners protesting unsafe working conditions and ongoing power cuts in South Africa have hampered supplies.. — AFP