UPDATE 1-CAMEC signs cobalt offtake agreement with Galico

* Signs long-term agreement to sell annual cobalt output

* On track to produce 8,000 tonnes of cobalt in 2009/2010

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LONDON, July 6 (Reuters) - Central African Mining & Exploration Company Plc (CFM.L) said on Monday it signed a long-term agreement to sell its annual cobalt production to Galico Cobalt & Nickel Materials Co., Ltd (Galico).

CAMEC will deliver its estimated 6,000 to 8,000 tonnes of cobalt, contained in concentrate form, at market prices from its Mukondo Mountain operation in the Democratic Republic of Congo.

CAMEC also said it is on track to produce 8,000 tonnes of cobalt, used in batteries and aero engines, contained in concentrate during its 2009/2010 financial year.

It added that commissioning of its 3,200 tonnes per annum cobalt SX/EW line, to produce cobalt metal, is on target to start production by September, with full output expected by March 2010.

CAMEC planned to buy a 78 percent stake in Galico in October but did not complete the acquisition due to ongoing uncertainty in the commodities markets. It said it does not plan to restart talks regarding the purchase of a stake.

Cobalt COB-ING-LON, a by-product of copper or nickel mining, is due to be launched as a futures contract on the London Metal Exchange early next year.

(Reporting by Julie Crust; Editing by Matt Scuffham)