UPDATE 1-DRDGOLD says 2 killed in SAfrica foreigner attacks

(Adds DRDGOLD says another worker killed, details)

By James Macharia

JOHANNESBURG, May 22 (Reuters) - South Africa's fourth-ranked gold producer DRDGOLD (DRDJ.J) said on Thursday two of its workers were killed in xenophobic attacks that saw a drop in output at one of its three mines in the country.

Bigger miners in South Africa, which also employ foreigners from the rest of Africa, said their staff and operations had not been affected by the anti-immigrant attacks that spread from Johannesburg.

The migrants are accused by many poor South Africans of taking scarce jobs and fuelling crime. So far, at least 42 people have been killed and 15,000 displaced in the fighting.

A DRDGOLD spokesman had earlier said a South African citizen was killed in the Ramaphosa settlement, probably caught up in the fighting, but added later that police had informed the company of the killing of another worker at the settlement.

"One of the workers was killed over the weekend in Ramaphosa township ... He was a South African and died of gunshot wounds," James Duncan, a spokesman for DRDGOLD, said.

The gold mining district of the East Rand where DRDGOLD's struggling EPRM mine is located has been hard hit by marauding armed mobs, targeting settlements near the mine, where workers drawn mainly from neighbouring Mozambique and Lesotho live.

It was not immediately clear how much output had been lost.

"Production at ERPM is still continuing. However, employee attendance has been negatively impacted since the weekend following violent attacks against foreigners in the area," the company said in a statement.

Earlier this month, the company said the EPRM mine's output for the quarter to end-March fell 21 percent to 17,362 ounces from the quarter to end-December last year.

Workers at the mine are drawn from Mozambique, Lesotho and Swaziland, the company said. DRDGOLD was assisting the workers' families with shelter and provisions, Duncan said.

Shares in DRDGOLD fell 1.49 percent to 6.60 rand, against a flat gold mining sector index .JGLDX.

Most workers at another mine, the small unlisted Primrose Gold Mine, who were mostly Mozambicans, had also stayed away from work since the weekend, an official at the mine said.

Operations were normal at AngloGold Ashanti (ANGJ.J), the world's third biggest gold producer, which employs 37,000 employees at its South African mines, including contract workers. A third of these were African foreign nationals.

"No one has been affected as far as we know," Alan Fine, a spokesman for the company said.