BEIJING (Commodity Online) : China’s gold output is expected to hit 290 tons this year and will explore 800 tons of gold reserves, said State Development and Reform Commission.

In the first half of this year, China produced a total of 146.51 tons of gold, representing a year-on-year increase of 13.49 percent, it said.

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China planned to produce 1,300 tons of gold and verify gold mine reserves of 3,000 to 5,000 tons in the five-year period between 2006 and 2010.

In this period, efforts will be made to readjust distribution of the gold industry, intensify gold mine prospecting, promote industrial restructuring and upgrade mining and production technology and equipment.

As part of this, Shaanxi Province will set up a company named Shaanxi Gold Group Ltd in a bid to boost the gold industry in the province, which is rich in the metal.

As an important gold production base in China, Shaanxi has proven gold reserves of over 300 tons, the fifth largest among all provinces across the country.

Gold output of the province ranks sixth, following Shandong, Henan, Fujian, Inner Mongolia, and Hunan.

The new company, to be built with the help of the Shaanxi Nonferrous Metals Holdings Group, will play a leading role in the technological renovation of the gold industry, according to the statement released at a regular government meeting.

The provincial government also calls for more merger and acquisitions within the province so as to optimize the industry structure.