Russia’s largest gold producer Polyus Gold reported a 14% fall in its gold output in the first half of the year compared to the same period in 2008, dropping its production level to 477,000oz.

The drop in the production has been attributed to the decline in the average gold content in the ore mined from the company’s Olympiada mine in Krasnoyarsk, from 4.5g/t to 3.5g/t, Reuters reports.

The company’s unaudited revenues also dropped 13% on the corresponding period in 2008, totalling $440m.

The company’s gold sales decreased to 477,000oz from 559,000oz in the first half of 2008, Reuters reported.

The company kept its production forecast at 1.3 million ounces, which if achieved would represent a 5% increase on last year’s figures.