Increase in gold output eyed

The mainland plans to produce 175 tonnes of gold this year, a 1.5 per cent increase over last year, according to a Xinhua report. The report said the 1.5 per cent annual increase compared with 10 per cent output growth over the past 25 years. The reduced output plan reflected declining demand for gold amid swelling foreign exchange reserves. Gold reserves stand at 397 tonnes, less than 3 per cent of the country's foreign exchange reserves of US$140 billion, the report said.