Thursday, 10th February 2005 (3393 views)

Gold output in Mongolia increased by nearly 75 per cent last year, making it the quickest growing producer of the yellow metal.

The output is the result of Toronto's Centerra Gold beginning production at Mongolia's Boroo Mine.

Last year, 19.2 metric tonnes were produced compared to 11.1 tonnes in 2003. However, this year output is likely to be similar since large mines are not expected to start production until 2006.

N. Algaa, executive director of the Mongolian National Mining Association told Bloomberg: "Centerra has a hard-rock mine, which helps give us a base for more stable growth in our gold industry.

"Several Canadian junior companies are doing extensive drilling, so we expect more output sometime after this year.'

According to Centerra, it is working with the government to develop procedures that are typical of "internationally accepted gold mining practices".

The mining industry in Mongolia is increasing as a result of a mining law introduced in 1997 to attract investment and gold mining now makes up around 40 per cent of the increase in its gross domestic product last year.

 

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