Russia may raise Gold output by 5% every year till 2020

A day after Russian central bank announced adding 570 tons of gold to it's reserves in the last ten years, a top industry body sees country’s gold production at 226 tons in 2012. According to Russian Gold Industrialists' Union, country's gold production is likely to increase by 5 percent this year from 226 tonnes in 2012. The Union said Russia may increase production by 5 percent a year till 2020 if gold prices remain high. In 2011, Russia produced 222 tons of gold, driven by the development of Polyus Gold's projects. Polyus, Russia's largest gold miner increased output last year by 12 percent to 1.68 million ounces, thanks to further improvement in recovery rates and higher processing volumes. Another major producer, Polymetal’s gold production jumped 33 percent to 589,000 ounces. Gold averaged $1,668.77 an ounce last year. London Metal Exchange gold forward contracts show that traders forecast the price to reach $2,700 an ounce in 2023. China, the U.S and Australia are the world’s three biggest producers.

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Courtesy:BULLIONSTREET