UPDATE 1-Zambia 2009 copper output rose 14 pct-c.bank

* Closure of some mines in 2009 affected output

* Govt has previously estimated output at 1 mln T by 2011

* Tax regime has eroded investor confidence

(Adds details, analyst comment)

LUSAKA, Feb 15 (Reuters) - Copper output in Zambia, Africa's top producer, rose 14 percent to 697,860 tonnes last year, but output was hampered by the closure of some mines after the global financial crisis unfolded.

Zambia has previously said copper production could hit 1.0 million tonnes by 2011 as new mines come on stream and expansions and upgrades take place at existing mines.

Frederick Bantubonse, the general manager of the Chamber of Mines of Zambia, said that to boost output quicker, the southern African nation's government should restore investor confidence, which was eroded by the introduction of higher taxes in 2008.

The taxes included a 15 percent profit variable tax, an increase in mineral royalties to 3.0 percent from 0.6 percent and a rise in corporate tax to 30 percent from 25 percent.

"The increase in production could have been higher without the global economic crunch which forced some mines to close down," Bantubonse said.

"The price of copper is good but there is need to quickly resolve the problems arising from the new mining legislation (taxes) which has affected investments," he said.

Three-month copper MCU3 on the London Metal Exchange was trading at $6,880 a tonne at 1222 GMT compared with $6,810 at the close on Friday. [ID:nLDE61E0G1]

Zambia's central bank said copper exports jumped to 675,384 last year from 587,125 tonnes the previous year.

Cobalt production rose to 5,879 tonnes from 4,617 tonnes in 2008, and exports rose to 5,868 tonnes in 2009 from 4,610 tonnes, the Bank of Zambia said.

Copper mining is Zambia's economic lifeblood and the mines are a major employer in the country of 12 million people. Some foreign mining companies in Zambia include London-listed Vedanta Resources Plc (VED.L), Glencore International [AG GLEN.UL] of Switzerland and Metorex MTXJ.J of South Africa. (Reporting by Chris Mfula; Editing by Amanda Cooper)