JOHANNESBURG (Reuters) - South Africa's Chamber of Mines said on Tuesday the country's gold production fell 15.6 percent to 52,228 kg in the first quarter of 2008 compared to the fourth quarter of 2007, owing to a power shortage. On a year-on-year basis, the rate of decline in gold production was 16.8 percent in the first quarter of 2008. The key reason for the large drop was the national electricity emergency which effectively closed the gold mining industry from 25 to 31 January 2008, the Chamber said. South African mines were thereafter forced to operate on below-capacity power supplies of 90 percent of their normal needs, as Eskom was unable to meet power demand and rationed power to avoid a collapse of the electricity network. At the time, the Chamber warned of a 15-20 percent drop in gold mining output in the country owing to the electricity shortages, and it asked Eskom to boost power supply to mines to also avoid shut downs that may have cost jobs. Eskom lifted supply to around 95 percent to some gold producers. Eskom has warned the power crisis may last for years, and blames its problems on several factors including the failure of the government to invest in electricity generating plants, maintenance problems at its power plants and low coal supplies. South Africa's economic growth eased to a 6-1/2-year low in the first quarter of 2008, partly owing to the power crisis. Figures released last week by Statistics South Africa said first-quarter growth slowed to 2.1 percent on a seasonally adjusted and annualised basis from 5.3 percent in the fourth quarter of last year. Mining output fell by 22.1 percent in the quarter -- its lowest growth since the second quarter of 1967 -- largely due to the electricity shortages that forced mines to halt production. | 
