Steady Gold Price Will Woo More Investments In Gold Production, Says Minister

KUALA LUMPUR, July 13 (Bernama) -- The current steady gold price will likely attract more foreign investments in gold production not only in Malaysia but globally, International Trade and Industry Minister Mustapa Mohamed said on Thursday. He said the price increase in recent years has wooed more investments into gold production. "Prices have a lot to do with the revival of gold business. Therefore, if the prices is to remain at US$1,500 to US$1,600 per ounce, I think we can see a further increase in gold production in Malaysia and throughout the world as gold is a sought-after commodity, a safe haven, especially when there are uncertainties," he told reporters after opening the first Asian Mining and Energy Investment Forum 2012. Besides prices, Mustapa said players need to equip themselves with the latest technology in gold production as it can lead to efficiency in gold mining, which generally takes nine years to produce gold. Currently, Malaysia has several gold mines in Raub, Kuala Lipis and Selinsing in east coast state of Pahang, with an annual production of only 3,500 kilogrammes. News reports said gold price has surged from US$272 an ounce at the end of 2000 to about US$1,700 an ounce at present. In September last year, gold price hit an all-time high of US$1,920 an ounce. In 2010, China was the world's largest gold producer, producing 345 tonnes, followed by Australia with 255 tonnes. On minerals exports, Mustapa said his ministry was expecting a double-digit growth this year. In 2010, Malaysia exported RM800 million (US$250.5 million) worth of minerals vis-a-vis RM550 million (US$172.3 million) in 2009. -- BERNAMA