UPDATE 2-ENRC output to return to 2008 levels, wary on 2010

* Output next year to return to 2008 levels after cutbacks

* Recovery more convincing, but uncertain about 2010

* Q3 ferrochrome output down 2.1 pct

* Shares down 2.0 percent

(Adds analyst comment, shares, more details)

By Eric Onstad

LONDON, Nov 12 (Reuters) - Kazakh mining group ENRC (ENRC.L) will return output next year to 2008 levels, but is still wary about the outlook for 2010 as it posted a 2.1 percent fall in third-quarter output of ferrochrome, a key product.

The London-listed firm, which slashed production late last year as demand slid during the global downturn, said on Thursday its production volumes had returned to normal levels at the end of September.

"For the ongoing businesses of the group, we are planning production volumes in 2010 will be close to 2008 levels," a statement said.

"We continue to anticipate uncertainty into 2010, with the risk for the industry of further volatility in commodity prices and volumes as supply still continues to outpace demand for many commodities."

The company, which floated on the London bourse in December 2007, said it was becoming more convinced about recovery in China, the main driver of commodities demand, but the situation in the United States, Europe and Russia was mixed.

ENRC shares, which have nearly tripled this year, fell 2.0 percent to 903.5 pence by 0927 GMT, compared to a 1.0 percent dip in the UK mining index .FTNMX1770.

Liberum Capital said in a note that although the firm reported strong quarter-on-quarter recovery in output after earlier cutbacks, the shares were no bargain.

"ENRC currently looks fully valued at 14.0x P/E... on 2010 spot earnings and we expect near-term price weakness," it said.

The spot ferrochome price has slipped to 90 cents per pound compared to fourth-quarter contract prices of $1.03 and there was concern that Kazakhmys (KAZ.L) could unload its stake, Liberum added.

Kazakh rival Kazakhmys is the group's biggest shareholder with a 26 percent holding.