Russia to Become the World’s Largest Gold Producer by 2029

SEATTLE (Scrap Monster): Fitch Solutions, in its latest report, said that Russia is expected to become the world’s largest gold producer by 2029.

The report published by Fitch Solutions Country Risk & Industry Research stated that Russia is likely to record annual average growth of 3.7% per annum of growth in gold output between 2020 and 2029. As a result, it will surpass China as the top gold producer in the world after nine years. This is despite the prolonged disruptions in gold mining activities in the country on account of the Covid-19 pandemic. The strong domestic demand for the yellow metal will underpin rising gold production in the country in the short-to-medium term, the Fitch report said.

Most of the mines in the region have continued to remain operational, despite Polyus Gold’s Olympiada mine in the Krasnoyarsk region of eastern Siberia reporting large number of coronavirus positive cases. Hence, there are limited risks to the country’s current gold production forecast for 2020.

Lately, the Russian central bank has been adding on to its gold reserves, mainly on account of escalating tensions with the U.S. In addition, the passing of Libya Stabilisation Act would result in cutting off access to dollar-denominated access, which in turn will boost the domestic demand for Russian gold.

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