South Africa's mining production decreased 1.6 percent annually in November, Statistics SA said on Thursday.

Mining production for the three months ended November 2009, after seasonal adjustment, decreased 1.9 percent compared with the previous three months.

Platinum group metal production had been the main contributor (-2.2 percentage points) while other non-metallic minerals and copper production (-0.8 and -0.6 percentage points respectively) also contributed to the 1.9 percent decrease. Actual estimated total mining production for the three months ended November 2009 decreased 8.1 percent compared with the three months ended November 2008.

According to analysts, the country's mining industry faces several challenges, including work interruptions due to safety issues, electricity considerations, the strong rand, skills shortages and aggressive pay demands.

There is also the problem of maintaining production in ever-deepening mines - particularly gold and platinum operations.