China mined 340.88 tonnes of gold in 2010, retaining the position of the world's largest producer of the precious metal, the China Gold Association said.
Increases in gold output will help China hedge against financial risks and inflation, as well as maintain economic security, Xinhua news agency quoted the association as saying.
The number of domestic gold producers shrank to around 700 at the end of 2010, from 1,200 in 2002, through mergers and acquisitions.
At present, China's top ten producers account for 49.19% of the total gold output.
Production is concentrated in five provinces, including Shandong, Henan, Jiangxi, Yunnan, and Fujian, which account for 59.82% of the total output.
Xinjiang also emerged as a province with major gold reserves in China.
Violent movements in asset prices caused by the financial crisis boosted Chinese investors' demands for gold as a safe haven.
The yearly average gold price jumped 25.6% from one year earlier to $1,224.53 per ounce.
