UPDATE 1-Kidd Metallurgical to suspend copper ops -Xstrata

LONDON Aug 27 (Reuters) - London-listed miner Xstrata (XTA.L) said a shortage of concentrate is forcing its Kidd Metallurgical Site in Canada to temporarily suspend its copper operations.

The suspension is effective week beginning September 7, the Swiss-based company said on its website on Wednesday. "The Kidd Metallurgical Site will start a temporary shutdown of the copper smelter and refinery for a period of seven to ten weeks."

Kidd Metallurgical produces about 145,000 tonnes of copper cathode a year. Stocks of copper in London Metal Exchange warehouses currently stand at under 300,000 tonnes and analysts estimate 2009 global copper demand at about 16.5 million tonnes.

"In addition to reduced shipments from some of Kidd's regular suppliers, concentrate availability is being compounded by the current Vale Inco strike in Sudbury."

Brazil's Vale's (VALE5.SA) Inco division will resume production of copper and precious metals at its Sudbury, Ontario, operations, despite an ongoing strike by workers, a company spokesman said on Wednesday. [ID:nN26270524]

Xstrata said some employees will be laid off temporarily, although the numbers and duration have not been finalized.

Analysts expect Xstrata's news to reinforce the bullish mood in the copper market, fostered by investors betting on economic and demand recovery.

(Reporting by Pratima Desai; editing by Keiron Henderson)