Russia ups H1 gold output 2%, similar growth seen for year
MOSCOW. Sept 8 (Interfax) - Russia raised overall gold production 2% year-on-year in H1 2016 to 116.873 tonnes, and is on track to achieve the same sort of growth this year as a whole.
The Russian Gold Mining Union said mine output in H1 2016 grew 4% year-on-year to 91.575 tonnes, output of by-product or incidental gold fell 13% to 7.079 tonnes and production of secondary gold or recoveries from scrap was unchanged at 16.805 tonnes.
Production of gold in concentrates for subsequent sale outside Russia rose 19% to 1.414 tonnes.
Russian gold production:
| H1 2016, kg | H1 2015, kg | Change | |
| Gold in ingots | 115 459 | 113 306 | +2% |
| - mined | 91 575 | 88 338 | +4% |
| - byproduct | 7 079 | 8 166 | -13% |
| - secondary | 16 805 | 16 802 | +0% |
| Production of gold in concentrates for subsequent sale outside Russia | 1414 | 1190 | +19% |
| - Novoshirokinsky Mine (Highland Gold, Trans-Baikal Territory ) | 963 | 826 | +17% |
| - Silver of Magadan (Polymetal, Magadan Region) | 451 | 364 | +24% |
| TOTAL | 116873 | 114496 | +2% |
| - mined, by-product | 100068 | 97694 | +2% |
| - secondary | 16805 | 16802 | +0% |
The Gold Mining Union's head, Sergei Kashuba, affirmed the union's production guidance for the year, which is 297-299 tonnes, up 1%-2% from 2015.
But the union is raising its 2016 gold price forecast to $1,250/oz, Kashuba told reporters.
"Here we are seeing that the factors capable of holding back gold prices have not really come into play. The Federal Reserve doesn't look as if it will put rates up, and money is still being pumped into the global economy. But other factors have come into play, which were not evident at the start of the year: volatility in nearly all markets, drops in yield for almost all financial instruments, and we are seeing negative interest rates at some leading central banks," the Union said in materials.
A strong dollar is all that is holding back gold prices at present, Kashuba said.
