JINAN -- The Jiaodong Peninsula in East China's Shandong province is expected to become a world-class gold production base, a local gold producer said Sunday.

Leading domestic gold producer Shandong Gold Group Co Ltd announced in a statement that the company will build a gold production center, with an annual output of 100 metric tons, on the peninsula, which has gold reserves totaling 2,300 tons.

The company plans to increase its production volume over the next eight years, targeting an annual production value of more than 100 billion yuan ($16 billion).

The company will work to promote resources integration on the peninsula and enhance the province's fame for gold production, the company said.