MEXICO CITY, April 7 (Reuters) - Mexican copper output will rise about 5 percent in 2010 from last year to 250,000 tonnes, an executive at copper miner Grupo Mexico (GMEXICOB.MX) said on Wednesday.
"Mexican output will be 250,000 tonnes, not including anything from Cananea," Xavier Garcia de Quevedo, the head of company's mining division, told reporters.
Mexico produced 238,400 tonnes of copper in 2009 according to the local mining chamber.
Grupo Mexico's massive Cananea mine has been shut for more than two years due to a labor dispute. Although Grupo Mexico has won a legal ruling against the strike the union has refused to end their occupation of the facility.
The impasse at Cananea is holding up $5 billion in investments planned by Grupo Mexico there and at its El Arco project in Baja California, Garcia de Quevedo said.
"Once (the Cananea situation) is resolved, we'll have the basis to start up the El Arco project as well," he said.
Garcia de Quevedo did not give a forecast for when Cananea might reopen.
The $2 billion El Arco project was expected to start production in 2012 with a capacity to produce 140,000 tonnes of copper and another 50,000 tonnes of copper anode.
The project would rely in part on some of the industrial facilities at Cananea to process its output.
The strike is also holding up a $3 billion expansion project at Cananea that would lift output there from 190,000 tonnes a year to 460,000 tonnes when complete.
The two projects, if built, would turn Mexico into the world's second largest copper producer, Garcia de Quevedo said.
Separately, Manuel Luevanos, the head of the local mining chamber, said in a speech he expected mining investment to total $13.1 billion in Mexico between 2010 and 2012. It was unclear if that figure included the $5 billion in investment on hold at El Arco and Cananea.
Luevanos said the mining industry would continue to invest in Mexico despite a difficult labor environment that he said had cost companies $3.2 billion in losses since 2006.