SANTIAGO (Commodity Online): As earlier reported by Commodity Online, Chile has started its plan to raise gold production by three multiples in the coming five years following the increased demand for the yellow metal as a safe haven for investors.

Gold prices are at an all time high in global markets with the metal crossing $1130 per ounce on Monday in almost all markets.

ALSO READ: Gold output to triple in Chile by 2015

The prices have contributed to excitement in Chile amid prospects that the country may earn ranking among the Top 10 gold producers once the current mining development plans are completed.

Projections by the Chilean National Copper Commission this week stated the country would likely triple its gold production within the next five years. The opening of new mines in Chile’s north will take production from 39 tonnes a year to nearly 110 tonnes.

As Chile’s gold production rises, the total output would make the country one of the world’s 10 largest producers. Chile currently ranks 16th in global gold production.

Development of the new mines would transform the Chilean gold industry into one of the biggest in the world.

The increased production is projected to come from the expansion of existing mines and two new mines in the Atacama region.

Work started recently on developing the Pascua Lama mine with a projected $3 billion investment by Barrick Gold, the world’s largest pure gold mining company. Production is scheduled to begin by 2012.

Another Canadian company, Kinross, plans to start work on a $1 billion development of the Lobo Marte gold mine by 2012. Kinross estimates the mine holds 185 tons of gold.

A further $3 billion project along Chile’s border with Argentina involves Barrick and Kinross working together to develop gold assets in the area. Both companies are active in other countries in South America.

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