Russia remained 3rd largest gold producer in 2016 (updated)
28/02/2017 13:01
(Adds details, quotes, context)
MOSCOW/LONDON, Feb 28 (Reuters) - Russia remained the
world's third largest gold producer in 2016 behind China and
Australia, data from the Finance Ministry showed on Tuesday.
Russia's gold mining industry has benefited from strong gold
prices, up 8.5 percent in dollar terms last year, and the impact
of domestic currency weakness, hit by a fall in oil prices and
Western sanctions over Moscow's role in Ukrainian crisis.
"(The) weak rouble and relatively low costs have been
supporting Russian gold production," Sergei Kashuba, the head of
the Gold Industrialists' Union, told Reuters.
Russia produced 288.55 tonnes of gold in 2016, down from
289.51 tonnes a year before, the finance ministry said. That
included 237.83 tonnes of mined output, versus 234.31 tonnes in
2015.
Russian producers usually sell the bulk of their gold to
local banks which the latter then pass to Russia's central bank,
one of the world's largest holders of bullion, leaving a smaller
volume for supply to Asia and Europe.
The central bank added around 200 tonnes of gold to its
holdings in 2016 and posted 2 percent month-on-month increase in
January. urn:newsml:reuters.com:*:nL5N1FA3WY urn:newsml:reuters.com:*:nL8N1G5338
The Gold Industrialists' Union estimates Russian 2016 gold
production at 297 tonnes, including gold containing concentrate.
It sees 2017 gold output at up to 305 tonnes. urn:newsml:reuters.com:*:nR4N18A01Y
Kashuba told Reuters on Tuesday he expected Russia to remain
the world's third largest gold producer in 2017 as production in
Australia is also rising.
Australian gold output hit a 17-year high of 298 tonnes in
2016. urn:newsml:reuters.com:*:nL4N1G92JE
China's 2016 gold output rose to 453.49 tonnes, the China
Gold Association said, adding that China is targeting up to 550
tonnes of annual gold output in 2020. urn:newsml:reuters.com:*:nB9N1FA00Z urn:newsml:reuters.com:*:nB9N1FG00S
While GFMS data showed global gold mine production declined
last year, Russia has seen rising gold output from deposits and
may launch two more in the coming years.
By the end of 2017, the country is expected to commission
its large Natalka gold deposit in the east, the main greenfield
project of Russia's largest gold producer Polyus PLZL.MM .
In the next three to four year Polyus will also study Sukhoi
Log, one of the world's largest untapped gold deposits, rights
for which a Polyus-led joint venture has just won. urn:newsml:reuters.com:*:nL8N1G61D6
Spot gold prices in London XAU= have risen 9 percent so
far this year and held steady on Tuesday at around $1,252 an
ounce with investors looking towards a speech later in the day
by U.S. President Donald Trump. urn:newsml:reuters.com:*:nL3N1GD1HC
(Reporting by Polina Devitt and Diana Asonova in Moscow and Jan
Harvey in London; additional reporting by Elena Fabrichnaya;
writing by Polina Devitt; editing by Jack Stubbs and David
Evans)
((Polina.Devitt@thomsonreuters.com; +7 495 775 12 42; Reuters
Messaging: polina.devitt.reuters.com@reuters.net))
Keywords: RUSSIA MINING/GOLD