UPDATE 1-Palamin Q3 copper concentrate output down 19 pct q/q

* Daily Q3 production at 32,374 tonnes

* Magnetite output up 23 pct q/q

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JOHANNESBURG, Oct 14 (Reuters) - Palabora Mining (Palamin) (PAMJ.J) reported a 19 percent drop in third-quarter copper concentrate output compared with the previous three months, hit by a lack of low grade concentrate from pond inventory.

But the copper concentrate production was 10 percent higher than the corresponding period last year, it said in a statement.

Daily production from the underground mine averaged 32,374 tonnes for the quarter to the end of September, slightly below the previous quarter's tonnes.

Palamin said its magnetite production during the quarter rose 23 percent compared with the previous three months as a result of an improved cycle time of the magnetite reclaiming process.

The company said it expects to maintain magnetite output at third quarter levels for the remainder of the year.

Its vermiculite output rose four percent quarter-on-quarter. (Reporting by Agnieszka Flak)