China may surpass SA as world's biggest gold producer - GFMS

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China might overtake South Africa as the largest gold producer should the country's gold output continue to decline, precious-metals consultancy GFMS said on Thursday.

Last year, South Africa’s gold production dropped to an 84-year low, registering a 7,5% year-on-year decline.

GFMS, which released the first update on its 'Gold Survey 2007' on Thursday, said that China had established itself as the world’s second-largest gold producer, after seven years of strong, continued growth.

Executive chairperson Philip Klapwijk noted that China had posted “very strong” growth in gold mine production in the first half of the year, reaching a total of 129 t.

Overall, global output had risen by almost 3% year-on-year in the six months to June.

JKL

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