South Africa's gold production fell 10.4 percent to 56,933 kilograms in the second quarter of 2008 as the country's electricity crisis continues to impact the sector.

    The Chamber of Mines of South Africa reported that production from its gold mining members fell 12.9 percent to 47,329.8 kilograms in April through June, compared to the same period last year.

    For the first half of 2008, South Africa's production declined 13.6 percent to 109,160.8 kg.

    "The key reason for the year-on-year decline in gold production was the national electricity emergency that effectively closed the gold mining industry from 25 to 31 January 2008 and which then curtailed electricity supply to the gold mining sector to 90 percent of normal usage," the Chamber of Mines explained.

    The chamber added that some mines were able to get extra electricity supply, above the 90 percent ration, after March on a case-by-case basis, but "there was no blanket increase in supply to 95 percent."The chamber said the industrial sector had borne the brunt of the electricity savings in the economy since the start of the power crisis in January and called on other sectors - such as government, parastatals, financial services, tourism, and households - to do more.

    "The mining industry is seriously concerned about the fact that very few other sectors have achieved much savings, such that the burden still remains on mining and other large industrial customers," the chamber stated. "Given the substantial export earnings and employment intensity of mining, it is clear that this situation cannot continue indefinitely."South Africa was relegated to being the world's second largest gold producer behind China in 2007, after being entrenched in the top spot for many years. China is expected to keep its ranking after revealing plans to increase output by 7 percent in 2008 to 300,000 kg (300 metric tons.)