UPDATE 1-CAMEC suspends cobalt, copper production in Congo

* Sees production restarting in early 2009

* China cobalt demand, copper prices plunge

* Shares drop over 18 percent

(Adds details, shares)

LONDON, Nov 19 (Reuters) - Central African Mining & Exploration Company CFM.L said it has suspended copper and cobalt mining operations in the Democratic Republic of Congo after a drop in demand and prices, sending shares down 18 percent. "The decision is a swift reaction to a sudden steep decline in cobalt demand from China, as well as a further decline in the copper price. The prudent measures will result in a material reduction in costs," said the London-listed miner in a statement on Wednesday.

Last week, copper, which is used in the power and construction industries, hit $3,520 -- its weakest since September 2005.

CAMEC said it is monitoring the situation on a weekly basis and expects production to start up again in early 2009.

The drop in metals prices has been compounded by fresh rebel attacks in Congo, home to some of the planet's richest deposits of copper and cobalt.

Shares in CAMEC, which have lost 92 percent of their value this year, were down 18.4 percent at 3 pence by 1458 GMT. (Reporting by Victoria Bryan)