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China produced 98.89 tons of gold in the first five months of this year, up 10.096 tons or 11.37 percent from the same period last year, according to the China Gold Association.

The January-May output of Chinese gold enterprises reached 25.8 million yuan (US$3.4 million), representing a 43-percent increase from the same period last year.

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These enterprises made a combined profit of 2.8 billion yuan, up 33 percent over the same period last year.

Gold products output in the first five months amounted to 50.35 tons nationwide, up 19.46 percent, according to the association.

Sun Zhaoxue, head of the gold industry association, said in May that China's gold industry has entered a period of fast growth on robust domestic demand.

Annual gold production nationwide stood at 240 tons in 2006, up 32.6 percent from 2001, while profits more than quintupled to reach 6.1 billion yuan last year, said Sun.

The country's top economic planner said China would boost its gold production by 8.3 percent to 260 tons this year.

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