Eskom woes result in decline in minerals output

South African gold output fell 16.5% in volume terms

The major financial losses that the mining sector experienced due to Eskom's power cuts have been announced. Statistics South Africa says South African gold output fell 16.5% in volume terms. Overall minerals production declined 10.7% in January compared with the same month the previous year.

During January Eskom requested mines to shut down to enable it to curb the ongoing power cuts. During 2007 China overtook South Africa as the world's leading gold producer.

Analysts have also warned that the latest data does not bode well for the first quarter's economic growth figures.

Last week, the government said it would let mines raise power use to 95% up from 90%. It said the plan would be phased in to avoid worsening the electricity crisis.