UPDATE 2-Mexico mining investment to drop in 2009, 2010

(Adds details about Goldcorp Penasquito mine)

CUERNAVACA, Mexico, Sept 24 (Reuters) - Investment in new exploration projects and mine expansions in Mexico will drop 25.3 percent in 2009 to $2.73 billion, compared with a year ago, as the financial crisis hits credit and metals prices, the national mining chamber said on Thursday.

Sergio Almazan, the head of the chamber, said investment in 2010 could drop even further to as little as $1.7 billion, 37.7 percent less than expected in 2009.

In 2008, when some metals prices were hitting record highs on international markets, investment in Mexico, a major copper and silver producer, reached $3.66 billion, Almazan said.

"The fall is in exploration projects in precious metals, copper (and) zinc ... Some expansion projects have also been put on hold," Almazan told a news conference.

Around 30,000 jobs in the sector have been lost due to the drop in investment and the slow down in the industry, he said.

But Goldcorp's (G.TO: Quote, Profile, Research, Stock Buzz)(GG.N: Quote, Profile, Research, Stock Buzz) massive Penasquito gold mine, which will be Mexico's largest, is on track to begin commercial output on Jan. 1 of next year, said the company's Mexico director on Thursday.

Salvador Garcia told Reuters that the mine would still be developed within the planned budget for the project.

Once the Canadian miner's Penasquito project reaches peak production in about five years, the mine is expected to produce 500,000 ounces of gold a year over its 22-year life. (Reporting Mica Rosenberg; Editing by Marguerita Choy