Gold Asian giants

Evident in the second half of the 90's rapid growth in world gold production in recent years was again inhibited. Three major leader in the manufacture of metal - South Africa, the U.S. and Australia - in 2001, reduced production of gold, compared to the prior year. At the same time, two major Asian gold miner - China and Indonesia - have continued to strengthen its position in the ranks of the world's major producers.


According to the "Gold Fields", the increase in gold production in China last year was only 4.3 tons (from 162 to 165 tons). However, the news agency "Xinhua" issued a statement CEO Chinese Government Gold Fuminya Cheng, who said that the volume of gold production in the country in 2001 increased compared to the previous year by 3.8% and reached a record in the history of the mark - 181.8 tons . Thus, according to official data, an increase of about 7 tons. In monetary terms, the gross output of the country's gold industry was 21.26 billion yuan ($ 2.57 billion), an increase of 2.11%, profit rose 3.4% to $ 145 million, according to Cheng Fuminya, improved financial performance of his company achieved despite the fall in international and domestic markets. Selling price of Chinese gold production for the year fell by 5.1% to $ 8.54 per gram of gold. Based on these indicators, China is the world's fourth largest gold producer. The country has 618 gold mine with stable production to 120-130 tons per year. The country's leadership intends to stabilize the volume of production at the level of approximately 175 tons per year, although the current planned 180 tons.

Gold production is controlled by the State Administration of gold, which is currently exploring the possibility of joint-stock system and a multi-channel investment in the industry. Previously, investors were allowed to develop only nizkosoderzhaschih or secondary ore deposits, which caused dissatisfaction investors and promoted the development of the gold industry in China. For decades, the gold trade is strictly controlled by the central government, and the People's Bank of China (PBC) to belong to a monopoly on the purchase and distribution of gold. Gold prices in the country had nothing to do with the prices of the world market, and subjected to small oscillations. Gold is bought by the People's Bank of China (the central bank) at a fixed price, which from time to time the bank makes a change due to fluctuations in the price of the precious metal.

In 2000, the People's Bank of China four times to cut prices in response to fluctuations in the world market. As a result of the purchase price of gold set by the central government for the year decreased to 82.8 yuan ($ 10) to 72.6 yuan ($ 8.7) per gram. However, even at low metal prices gold sector in 2000 was more than 1 billion yuan profit (over $ 120 million), an increase of almost 16% against the previous year. Recently made a powerful claim to the economic expansion in East Asia, China is the most serious attention to the gold mining sector. It outlines major reforms. Beijing intends to abandon the planned management system of unified procurement and distribution of gold and will return it to create the gold market.