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UPDATE 1-SAfrica's March gold output falls 10.9 pct yr/yr

Tue May 13, 2008 5:51am EDT

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(Adds February sales, background)

JOHANNESBURG, May 13 (Reuters) - South African gold output fell 10.9 percent in volume terms, while overall mineral production declined 17.2 percent in March compared to the same month in the previous year, official data showed on Tuesday.

Production of non-gold minerals fell by 18.1 percent in March, Statistics South Africa added.

In February, year-on-year gold sales fell 1.3 percent to 3.39 billion rand ($442.4 million), sales of non-gold mineral rose by 23.6 percent to 18 billion rand, and total mineral sales rose by 18.8 percent to 21.4 billion rand, according to a statement on www.statssa.gov.za.

Mining output in South Africa has taken a hit after state-owned power utility Eskom [ESCJ.UL] struggled to provide sufficient power to mines, following a near collapse in the electricity grid in January, which led to a five-day countrywide mining shutdown.

Eskom has since supplied around 90 to 95 percent power to mines in the country.

South African gold producers, AngloGold Ashanti (ANGJ.J), Gold Fields (GFIJ.J), Harmony (HARJ.J) and smaller miner DRDGOLD (DRDJ.J) all produced less in the quarter to end-March, due to the power crisis, but were rescued by a higher gold price, which boosted their earnings. (Reporting by James Macharia, Editing by Peter Blackburn)



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