China increases gold production

China has discovered new gold reserves and is using advances in technology to increase production.

The country’s National Development and Reform Commission (NRDC) has reported that gold production increased 15.26%, to 122.2 tonnes, during the six months to the end of June, compared with the same period of 2006.

The average global gold price during the period stood at US$658.75 per ounce, higher than the annual record of US$614.5 in 1980.

The Chinese gold sector earned US$458.7 million in net profits over the six month period, representing a 40.35% increase than the same period last year. Output of industrial gold grew by 43%, to US$4.2 billion.

The NDRC has reported a substantial discovery of gold reserves in the Yangshan Gold Mine in the northwestern province of Gansu.

In addition, large reserves of gold have been located in other parts of Gansu province, the eastern province of Shandong and the northeastern province of HeiLongjiang.

China’s is also reviewing its taxation of the mining sector and the State Administration of Taxation has announced that at the beginning of August, the country will raise the level of its resources tax on lead and zinc mines, copper mines and tungsten mines.

Difference resource tax brackets will be allocated according to metal grade, reserves, mining company ore production and sales revenues.