Russian Copper Co freezes zinc, nickel projects

YEKATERINBURG, Russia, Oct 10 (Reuters) - The Russian Copper Company has temporarily shelved separate projects to expand into nickel and build a zinc plant with a rival miner due to the global financial crisis, a company spokesman said on Friday. The company, Russia's third-largest copper producer, said all existing projects would continue to operate and that no production cuts were planned.

"We are not closing any projects. We are only putting on hold those projects which are at the blueprint stage -- the nickel and zinc projects," Russian Copper spokesman Alexander Khanin said.

"Production has not stopped. We do not plan staff cuts. The construction of projects which have already started and upgrades to existing plants are proceeding," Khanin said.

Russian steel makers are feeling the effects of the global financial crisis, with Severstal (CHMF.MM) and Magnitogorsk Iron and Steel Works (MAGN.MM) this week announcing output cuts. Base metal producers have yet to announce similar plans.

Russian Copper said in February it was prepared to invest $640 million to create a new subsidiary, the Russian Nickel Company, to produce at least 10,000 tonnes of nickel and 1,000 tonnes of cobalt.

In May, Russian Copper and Urals Mining and Metals Co, the country's second-largest copper producer, announced a $650 million project to jointly build a new zinc plant with annual capacity of 30,000 tonnes a year.

(Reporting by Natalya Shurmina; writing by Aleksandras Budrys; editing by Christopher Johnson)