China gold production hit 12 percent in 2012 despite economic slowdown

Beijing, China (4E) – China’s gold production rose by 12 per cent in 2012 compared to the previous year despite the slowing economic growth in the domestic economy, according to official data.

Latest figures from the Ministry of Industry and Information Technology said that China produced 403.1 tons of gold in 2012, a gain of 42.1 tons or 11.66 percent from the previous year.

From the total production, 341.t8 tons were generated from gold mines, while 61.3 tons came as a byproduct of nonferrous metal smelting, according to the ministry.

Gold producers made 380.79bn yuan ($60.57bn) in industrial output value, which is a 33.91 percent increase, as profits jumped to 4 per cent to 35bn yuan.

The World Gold Council said that China, which ranks second to India in terms of gold consumption, had a consumer demand for gold at 776.1 tons last year, relatively unchanged from the previous year.

The global industry group reported last month that the flat Chinese demand was because of the slowdown in the Chinese economy and consolidation in gold prices that kept investors away from the metal.

Gold prices in China fell in December 2012 amid a downward trend in the global gold market. The ministry also said noted that the fiscal cliff deadlock in the U.S. added more uncertainty to the market.

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