South Africa’s gold production fell by 8.7 percent in November 2008 compared with the same month in the previous year, the national statistics agency said on Thursday.

Non-gold production fell by 5.7 percent while there was a 6.1 percent decline in total mining production for the month, mainly due to drops in diamonds, coal and gold, Statistics SA said.

Gold and other mineral production has suffered ever since state power utility Eskom reduced power supply to the mines at the beginning of last year when it resorted to power-rationing.

Eskom has since supplied mines with between 90 and 95 percent of required power.

The power cuts, coupled with a global drop in commodity prices, has led to job lay-offs in South Africa, especially in the mining sector, the nation’s main foreign exchange earner.

Now production has also been hit by the global financial crisis, which has seen demand — and prices — for raw materials drop around the world.

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