Search
  • Editor

Russia expected to surpass China as largest gold producer

Updated: May 13

Russia has tripled it's gold output over the last 20 years and is slated to overtake China. S&P Global study says China is slowing down mining operations while Russia is still expanding.


Per Kitco.com...


"With its estimated 331 tons in 2020, Russia ranked second in terms of global gold output accounting for 9% of the world's total, Institute of Geotechnologies wrote in a presentation seen by S&P Global Platts May 6. Production in China declined 3.8% on the year to 368 tons.

If Russia maintains its current growth trajectory, it may become the world leader in gold mining as soon as this decade, the institute claims," S&P Global wrote."


Russia is also the world's largest producer of palladium and a major producer of platinum, in addition to nickel. Platinum prices have been depressed compared to the other three precious metals since it's primary usage is to combat emissions from diesel engines. With Europe abandoning diesel engines, the jewelry sector has not seen enough demand to support the price of platinum, as it's still way below it's high set in the early 2000's.


More from Kitco...


"Over 70% of Russian gold comes from gold deposits. Polymetallic deposits (copper-pyrite, copper-nickel, etc) provided about 12% of production. The last few years saw the emergence among Russian largest gold companies of producers, for whom gold is a byproduct."

Russia's gold market is also resilient to any gold price fluctuations because of low-cost operations.

"A potential decline in the world gold price will have a lesser effect on the production of large Russian miners due to their relatively low operational costs; it will rather stimulate them to ramp up output," S&P Global said."


You can read the full article here

3 views0 comments