UPDATE 1-Chile Codelco 2008 copper output down 7.4 percent

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SANTIAGO, Feb 27 (Reuters) - Chile's Codelco, the biggest copper miner in the world, said on Friday it produced 1.466 million tonnes of the metal last year, not including its stake in El Abra, down 7.4 percent from 1.583 million tonnes in 2007.

With the El Abra mine, a partnership with U.S. miner Freeport-McMoRan (FCX.N), Codelco's copper output was 1.548 million tonnes versus 1.665 million tonnes in 2007.

Chief Executive Jose Pablo Arellano told a news conference the decline came amid falling ore grades, labor disruptions and a harsh winter that interrupted some production activities.

Codelco output fell 5.5 percent in 2007 compared with 2006. Output also fell in 2006 versus 2005.

State-owned Codelco is the world's largest copper miner, although its output has receded in recent years as ore grades fell at its aging mines and amid supply disruptions.

Molybdenum output at Codelco, the world's second-largest producer of the metal, fell 25 percent in 2008, to 21,000 tonnes compared with 28,000 tonnes in 2007.

Molybdenum output has fallen hard in Chile in general in recent months, accompanying prices that have been slashed to a third of year-ago levels. (Reporting by Manuel Farias; writing by Pav Jordan)