South African gold output drops 13th straight month in October

South African gold output contracted for a 13th consecutive month in October, the longest streak of declines in six years, as the industry battles unprofitable mines and labor strikes.

Gold production declined 15.1 percent from a year earlier, the Pretoria-based statistics office said Tuesday in a statement on its website. Total mining output rose 0.5 percent.

Key insights:

Dwindling output has cut gold's contribution to little more than 1 percent of the South African economy, down from 3.8 percent in 1993. Unprofitable mines and demands for higher wages has led to job cuts in the industry, exacerbating unemployment in a country with a 27.5 percent jobless rate. The production of platinum-group metals surged 21.4 percent from a year earlier.

(By Rene Vollgraaff)