Russia's 2004 gold output rose by two percent year-on-year to 180.5 tonnes, the industry lobby said on Monday. Mine output rose by just 0.5 percent to 158.8 tonnes, the Russian Gold Industrialists Union said in a statement. Refining of gold as a by-product of other metals declined by 13.4 percent to 10.4 tonnes, while refining from scrap rose by 65 percent to 11.3 tonnes.

Last month the lobby said it expected output to decline to 172.5 tonnes from last year's 176.9 tonnes due to depletion of resources in the existing mines and a delay in commissioning new production facilities.

But on Monday it said the situation had improved in the end of 2004 when some mines increased production.

Copyright Reuters, 2005