Sumitomo sees zinc output rise at its Bolivia mine

TOKYO, June 10 (Reuters) - Sumitomo Corp (8053.T) said on Wednesday that its San Cristobal mine in Bolivia is due to produce 246,000 tonnes of zinc this year, up about 41 percent from 2008's output of 174,000 tonnes. Growing hope that the worst of the global financial crisis may be over is helping to buoy the prices of metal, which will be in demand as economic activity recovers.

A Sumitomo spokesman said the firm was operating the mine at full capacity and that this would continue given recovering market conditions.

The facility is also expected to produce 64,000 tonnes of lead in 2009, down about 5 percent from 67,000 tonnes last year, and 561 tonnes of silver, up 12 percent from 499 tonnes.

The trading company, Japan's third largest, said in November that it had reached a basic agreement to buy Apex Silver Mines Ltd's 65 percent interest in the Bolivian mine, in which it already had a 35 percent stake.

A formal agreement was signed in March, which made Sumitomo the sole owner of the San Cristobal mine.

A news release from March said the mine had confirmed reserves of 14,000 tonnes of silver, 3.8 million tonnes of zinc and 1.3 million tonnes of lead. (Reporting by Miho Yoshikawa; Editing by Joseph Radford)