Second Cuban nickel plant opens after storm

HAVANA, Sept 23 (Reuters) - A second Cuban nickel plant opened on Tuesday in Moa Holguin, state-run radio reported, as the country's most important export industry works to resume full production after taking a direct hit from Hurricane Ike two weeks ago.

"At five in the afternoon smoke began coming from the Che Guevara plant, a sign that it had started up its machinery to begin production," Holguin province state-run Radio Angulo reported.

The state-owned Ernesto Che Guevara plant has a 33,000 tonne capacity.

Local radio said it had sustained heavy roof damage and was awaiting materials, while covering the most sensitive areas with roofing that was available.

Category Two Ike entered Cuba at Holguin's northern coast, where the nickel industry is located, seriously damaging housing and buildings and swamping the area with torrential rains and a storm surge.

The Pedro Sotto Alba plant in Moa Holguin, a joint venture between state-run Cubaniquel and Canadian Sherritt International (S.TO), resumed operations a week ago.

The Pedro Sotto Alba plant is Cuba's most efficient, producing 33,000 tonnes of unrefined nickel plus cobalt per year.

Radio Angulo said on Monday that "repairs are moving forward at the Rene Ramos Latourt plant of Mayari ... it's hoped the plant can resume nickel production on the 25th."

The state-owned plant is Cuba's oldest with a 10,000 to 15,000 tonne capacity.

The Caribbean island is one of the world's largest nickel producers, at 75,000 tonnes of unrefined nickel per year, and supplies 10 percent of the world's cobalt, according to the Basic Industry Ministry.

Nickel is essential in the production of stainless steel and other corrosion-resistant alloys. Cobalt is critical in production of super alloys used for such products as aircraft engines.

Nickel emerged as Cuba's biggest export-earner in 2000. It garnered more than $2 billion in 2007, with almost all output destined for Canada, Europe and China.

Cuban nickel is considered to be Class II, with an average 90 percent nickel content.

Cuba's National Minerals Resource Center reported that eastern Holguin province counted 34 percent of the world's known reserves, or some 800 million tonnes of proven nickel plus cobalt reserves, and another 2.2 billion tonnes of probable reserves, with lesser reserves in other parts of the country. (Reporting by Marc Frank; Editing by Marguerita Choy)