Gold output in China, the world's fourth-biggest producer of the precious metal, is set to maintain strong growth momentum this year, boosted by robust demand and bullish prices.

The National Development and Reform Commission (NDRC), China's top industry regulator, said on February 14 that the nation's 2007 gold production would reach 260 tons. This will represent an 8 percent increase from last year.

Zhang Yongtao, deputy secretary general of the China Gold Association, told China Daily gold production would climb by 5 to 6 percent this year from 2006.

"Domestic gold miners will further speed up production this year, inspired by strong demand and high prices," Zhang said.

He predicted China would be the world's No 3 or even No 2 gold producer in 2008, according to current growth.

Last year, the country's gold production rose by 7.15 percent to 240.08 tons, behind South Africa, Australia and the United States, according to data from the Beijing-based gold association.

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