Russia aims to stay ahead of China in Gold Production


Russia aims to stay ahead of China in Gold Production

Fitch Solutions recently released a report. In the report, Russia said it would increase gold production as it increases its gold reserves in the light of expanding US sanctions.

The report states that with this move, production in Russia will prevent gold production in China by 2029.

Gold Demand Will Continue

The report also added, “As bilateral relations are tense, the increased risk of freezing the dollar assets of Russian state banks forces the Russian central bank to increase its gold assets. As long as tensions with the US continue, the demand for gold will continue in the domestic market. ”

More specifically, Fitch Solutions states that Russian gold production will increase from 11.3 million ounces in 2020 to 15.5 million ounces in 2029, which means an annual increase of 3.7%.

This means that Russia’s global production, which is 10.6%, will reach 11.6% with the increase.

Recession in China

Fitch Solutions for China expects gold production to stop between now and 2029, with an average annual growth of 0.2. The report points to decreasing reserves, production cuts and strict environmental regulations as some causes of stagnation.

In the report, “This indicates a remarkable slowdown compared to the average annual growth of 3.1 in the previous 10-year period. However, the country will continue to be the largest global gold ore producer, with a significant margin. ”

Status of China

According to Fitch Solutions, China will be able to maintain its best producer status by increasing investments in foreign gold mines.

“Among the important deals in recent years is the acquisition of 50% of Chinese firm Shandong Gold in the Veladero mine in Argentina for $ 960 million from Barrick Gold. Firms will also work together on exploration activities in the region. In 2017, Zijin Mining produced 1.2 million gold, accounting for 10.2% of China’s total production. ”

Another prospective Chinese competitor will be Australia, which is estimated to increase its gold production by 2.2% annually by 2029, which will increase from the current 11.7 million ounces to 14.2 million by 2029. Overall, global gold production is estimated to increase from 106 million ounces in 2020 to 133 million ounces by 2029, which means an average of 2.5% annual growth. In contrast, global gold production increased by 1.2% on an annual basis between 2016 and 2019.

Samuel Hegi

Samuel Hegi , who first became acquainted with blockchain technology in 2014, is highly critical of blockchain technology. Samuel Hegi, a journalism graduate from the University of Brighton he is the editor-in-chief of the news portal. Blockchain is love.

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