Southern Copper Corp., one of the world's largest copper producers, said on Tuesday that its first-half profit rose on increased output and higher prices for the metal.

"The results, if you compare the first half of 2006 with the first half of 2007, are going to be significantly higher," Southern Copper CEO Oscar Gonzalez told reporters.

Southern Copper is controlled by Grupo Mexico and has operations in southern Peru at the Toquepala and Cuajone mines and Ilo smelter.

Southern Copper, which also operates the Cananea and La Caridad mines in Mexico, forecast in March that it would produce about 700,000 tonnes of copper this year.

"In Peru and Mexico, (profits) are going to be much higher, because last year there was a four-month strike in one of our Mexican mines, and a walk-out of a month and a half in another .... They did not produce during that time," Gonzalez said.

Gonzalez said that despite a recent strike at the company's Peruvian operations, first-half output in Peru was in line with last year's.

"Regarding profits (in Peru), these are going to be higher than last year's, largely due to (better) prices, production was very similar," he said.

Workers at all of the company's Peruvian operations staged a five-day strike in late June demanding higher wages and better benefits, and are now engaged in talks with government officials and company executives.

Peru is the world's third-biggest copper producer.