China's gold output hits new high in '10

China's gold output hit a new high of 340.88 tonnes last year, registering a year-on-year increase of 8.57 per cent.

According to the latest data from China Gold Association, China's gold output has been the world's largest since 2007, when it surpassed that of South Africa.

China's gold output recorded only 4.07 tonnes in 1949 and rose to 13.8 tonnes in 1975. China started to invest heavily in the gold industry since the 1970s.

In 1995, China's gold output exceeded 100 tonnes for the first time and reached 200 tonnes in 2003. Stimulated by the upward trend of gold prices, gold output increased by 11.34 per cent in 2009, state run People's Daily reported.

Currently, gold production has become a major industry and an important source for fiscal revenues in over 100 counties. Shandong, Henan, Jiangxi, Yunnan and Fujian were the top five gold producing provinces in 2010.

The average gold price in the international market in 2010 was $1,224.53 per ounce, 25.6 per cent higher than 2009. Gold demand in China's domestic market was also strong.