Interfax-China reported that Shandong Gold Group Co Ltd and Zhaojin Mining Industry Co Ltd two major Chinese gold producers both have plans to expand annual gold output to 30 tonnes within five years.

A senior employee from Shandong Gold, who wished to remain anonymous at the China Mining Congress and Expo 2009 held in Tianjin Municipality said "We plan to increase our annual gold output to 30 tonnes by 2011 and increase our gold resources through exploration and acquisition from our current level of 600 tonnes. This year Shandong Gold plans to produce around 20 tonnes of gold up from 17 tonnes in 2008.”

Meanwhile, an employee surnamed Mr Zhong from Zhaojin Mining told Interfax that his company also plans to increase its annual gold output to 30 tonnes by 2014 while in 2009 it aims to produce 13 tonnes of gold, up from 10 tonnes in 2008. Zhaojin Mining had 150 tonnes of gold resources by the end of 2008 and in the first three quarters of 2009 the company expanded its gold reserves by 38 tonnes.

According to another Shandong Gold employee surnamed Mr Sun in June this year, Shandong Gold bought the Guilaizhuang gold mine, which has 16 tonnes of gold resources, located in Pingyi county of Shandong Province. In September the group also bought a 52% stake in a gold mine located in Qinghai Province. That gold mine currently contains gold resources of about 30 tons and Shandong Gold plans to spend three years starting in 2010 on further exploration work at the mine.

Furthermore, Mr Zhong predicted that international gold prices would climb above USD 1,100 per ton before the year's end, on speculation of strong investment demand for gold globally, continuing drops in the value of the US dollar and governments worldwide including China increasing their gold reserves.-LCL

(Sourced from Interfax-China)