FACTBOX-Idled metal capacity restarts, projects on time

June 17 (Reuters) - Encouraged by higher prices, a few metal producers have started to reverse earlier cutbacks, prompted around mid-2008 by plunging demand.

But for metals like aluminium and nickel, where more cuts are still needed, such moves come on top of on-schedule start-ups of new projects and threaten to keep those markets in surplus for longer than most.

Some analysts are also concerned that zinc producers, who were fast to curtail output as demand slumped, might also contemplate reopening at current prices.

Below details news on restarts of capacity previously idled by low prices and poor demand.

We also detail the latest on new projects which have not been derailed by the global economic recession and have either started up recently, or are still on course to come on stream this year.

RESTARTS

June 17 - Bosnia's Aluminij Mostar could restore full aluminium production in the autumn if the metal's price recovery continues, a top official said. [ID:nLG844895]

June 12 - Zambia's mines minister said the country's Munali nickel mine plans to re-open within the next month. To be restarted by China's Jinchuan Nickel Group Ltd. [ID:nWEA6579]

June 9 - HudBay Minerals (HBM.TO) said it could restart its Chisel North zinc mine in Manitoba if the metal's price increases another 10 or 15 percent from its current level. [ID:nN09400371]

June 6 - China Nonferrous Metal Mining Corp (CNMC) pledged to invest $400 million in Zambia's Luanshya Copper Mines (LCM) after formally taking over running of the mines. CNMC said it would reopen the Baluba and develop Mulyashi as soon as possible, but gave no timeframe. The company has also commissioned the 150,000 tonnes per year (tpy) Chambishi copper smelter in Zambia. [ID:nL6314236]

June 3 - German independent aluminium producer Trimet Aluminium AG said it was raising slightly its output to 50 percent of capacity from 45 percent, citing a recovery in demand. [ID:nL36002]

May 14 - In its results for the financial year ended March 31, Silvercorp Metals Inc said output would be partially resumed at the TLP, LM and HPG mines. [ID:nWNAB9967]

April 29 - Zambia's Mopani Copper Mines, majority owned by Glencore International AG [GLEN.UL], reversed a decision to halt operations due to a cost savings plan and higher copper prices. [ID:nLT857604]

April 15 - Central African Mining and Exploration Co Plc CFM.L said it had resumed copper production at its Luita operation in the Democratic Republic of Congo. The company said it was responding to higher prices. [ID:nLF642237]

April 1 - Dundee Precious Metals Inc (DPM.TO) said it had restarted its Armenian gold-silver-copper-zinc operations. [ID:nWNAB9387]

March 30 - Chinese aluminium smelters are restarting capacity they shut in the December quarter, as prices are high and supply tight, smelter officials said. More than 700,000 tonnes of the country's idle aluminium capacity was estimated to be in the process of restarting. [ID:nHKG349996] Some analysts now put that figure at more than double that amount.

PROJECTS IN 2009

ALUMINIUM

April 21 - Qatalum, a $5.6 billion joint venture between Qatar and Norway's Norsk Hydro (NHY.OL) is expected to begin commissioning in Q4 and sell its first cargo by early next year. The smelter will have a design capacity of about 585,000 tpy. [ID:nLL532308]

April 9 - Vedanta (VED.L) said aluminium expansions such as its Jharsuguda smelter were on schedule. The first phase is due to hit its 250,000 tonnes annual run rate during the current quarter. The second phase, which will add another 250,000 tonnes of annual capacity, is due to be fully operational by the end of the current fiscal year. [ID:nL8931933]

April 9 - State-owned Dubai Aluminium Co (Dubal) said it aimed to bring on line the first phase of what would be the world's largest single aluminium smelter in December. The Emirates Aluminium (Emal) plant in Abu Dhabi will have an initial 700,000 tonnes per year (tpy) capacity, which will double when fully on line in 2013/14. [ID:nL9578767]

March 25 - Eurasian Natural Resources Corp Plc's (ENRC) (ENRC.L) said Pavlodar primary aluminium smelter in Kazakhstan achieved its Phase 1 run-rate production target of 125,000 tpy in Q2 2008, ahead of scheduled year-end date. The plant, which came on stream in December 2007, looks to be on course for first full year of production in 2009.

Jan 15 - In its Q4 2008 results Rio Tinto (RIO.L) (RIO.AX) said the Sohar aluminium smelter in Oman, in which it holds a 20 percent stake, was proceeding on schedule. The 350,000 tpy plant started production in mid-2008. Full capacity is reported to have been reached in late April.

COPPER

June 3 - Inmet Mining (IMN.TO) said it had produced its first copper cathode at the Las Cruces project after earlier delays. Will ramp up to 72,000 tpy in the coming months. [ID:nWNAB6136]

May 13 - In its Q1 2009 results First Quantum (FM.TO) said its Guelb Moghrein expansion project to 44,000 tpy is on schedule for commissioning in July.

April 2 - Newmont Mining Corp (NEM.N) said its Boddington copper-gold mine in Australia is on track for first production in the middle of this year. At full capacity it will produce 30,000 tonnes per year (tpy) of contained copper.

March 31 - Lundin Mining (LUN.TO) said the Tenke Fungurume copper-cobalt project in the Democratic Republic of Congo had produced its first copper cathode. On June 9, the company said production at the mine was higher than expected and should end up exceeding long-term forecasts. [ID:nLA324619]