Vale sees Canada nickel ops at full capacity soon

* Operations to reach full capacity by late September

* Nickel output to rise after Sudbury dispute ends

* Voisey's Bay producing even as labor dispute persists

RIO DE JANEIRO, July 30 (Reuters) - Brazilian miner Vale (VALE5.SA)(VALE.N) expects its Canadian nickel operations to return to full capacity by September following the end of a grueling strike at key facilities in Canada.

The firm agreed on a new five-year contract with unionized workers at its Sudbury and Port Colborne nickel operations in early July, ending one of the longest and most acrimonious labor disputes in Canada's mining history. [ID:nN08232775]

"We are already bringing back all the employees. We need some time to train them again, so we should be back at full capacity by September," said Tito Martins, Vale's director for Basic Materials, later adding it would be toward the end of September.

Vale directors were speaking on a conference call to discuss the firm's second-quarter results, which more than quadrupled from a year ago after iron ore prices rose sharply. [ID:nN29115341]

A separate strike is still ongoing at the Voisey's Bay nickel site in the province of Newfoundland and Labrador where 200 workers will complete a year of strike action on Sunday. The sides have yet to agree on new contract terms.

"It's important to address that workers are still on strike in Newfoundland but it's not interfering with operations because there we are operating a 100 percent," Martins said.

Voisey's Bay began producing again earlier this year using non-union workers and outside contractors.

London prices for nickel, used in making stainless steel, were up 2.2 percent on Friday to $21,125 per tonne.

(Reporting by Brian Ellsworth; Writing by Peter Murphy; Editing by Sofina Mirza-Reid)