China's gold output dips on lower prices

BEIJING: Though China remained the world's largest gold producer, the country's annual output of the metal fell for the first time in 2015 due to lower prices in the global gold market, according to latest industry figures.

The country produced 450 tonnes of gold last year, down 0.39 per cent year on year, the China Gold Association said.

International gold prices have shed nearly 40 per cent since April 2013, squeezing producers' profits and affecting output, the association said.

However, China remained the world's largest gold producer for a ninth year running and saw gold consumption recovering last year, the association said.

China consumed 986 tonnes of gold in 2015, up 3.7 per cent year on year, compared with a 24.7 per cent slump in 2014, state-run Xinhua news agency reported.

The association attributed the growth to a marked increase in gold jewelry sales and forecast the country would maintain its status as the world's biggest gold consumer.

China's gold reserve reached 1,762 tonnes at the end of 2015, the association said.