UPDATE 1-Mexico copper output down 19.7 pct in Oct.

(Recasts, adds details about copper mines, table)

MEXICO CITY, Dec 17 (BestGrowthStock) – Mexican copper production fell nearly
20 percent in October from the same month last year, the biggest monthly
drop in 2010, the national statistics agency said Friday.

Two Mexico-based mining analysts said companies might be exploiting
lower grade deposits, which would account for the fall in output.

A three-year-long strike shuttered Mexico’s largest copper mine,
Cananea. The pit’s owner, Grupo Mexico, regained control of the
installations this year and has said operations are slowly resuming. Grupo
Mexico’s (GMEXICOB.MX: ) smelter at its second most important copper mine La
Caridad was hit by another labor dispute in September but the company said
only refining operations, not mine output were affected. The smelter was
back online by the end of October. [ID:nN25526477]

Silver production increased slightly in October to 279,426 kg in
October, up 1.7 percent compared with a year earlier, the institute said.

A breakdown of metals production follows:

Product 2010 Pct Chge

vs yr ago

Gold 5,254 kgs +7.2

Silver 279,426 kgs +1.7

Lead 11,026 tonnes +33.1

Copper 15,474 tonnes -19.7

Zinc 31,703 tonnes -4.2
(Reporting by Mica Rosenberg; Editing by John Picinich)

UPDATE 1-Mexico copper output down 19.7 pct in Oct.