Russia could overtake Australia, China and US in gold production by 2015

If gold prices remain relatively high over the next two years, Russia could become the world’s number three gold miner by 2015, according to Sergei Kashuba of the Russian Gold Industrialists Union.

Russia recently became the world’s number one buyer of gold but production, too, is forecast to rise.

Only South Africa is home to more gold reserves than Russia. And if Russian gold output reaches the expected growth level of 4-5% per year, Russia would surpass Australia, China and the USA in total production.

Like all domestic gold sectors, however, Russian gold miners are facing declining prices (as investors’ appetite for riskier assets increase) and an increasing prospect of market consolidation in the coming decade.

Speculation about a merger between Russian metals giants Polyus and Polymetal has garnered significant attention in recent weeks but seems to have cooled off, for now.



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