UPDATE 1-Ivernia expects to restart Australian lead mine next year

* Expects mine to reach full production by end of 2013

* To hire up to 200 workers at the mine

(Adds CFO comments, details) By Maneesha Tiwari

Oct 11 (Reuters) - Canadian miner Ivernia Inc saidit expects to restart production its lead mine in WesternAustralia in the second quarter of 2013, nearly two years afterit suspended operations on concerns about lead contamination.

The company plans to hire up to 200 employees at theMagellan mine, with the recruits joining in the first quarter of2013, Ivernia Chief Financial Officer Brent Omland told Reuters.

Ivernia halted operations and cut 195 of 235 jobs at itsflagship mine in April last year after lead was detected in mudsamples taken from shipping containers coming from the mine.

The company's shares have fallen 76 percent since then.

Ivernia plans to restart operations in stages, with fullproduction expected by the end of 2013, the company said.

The company is targeting average production of 85,000 tonnesof contained lead per year, or slightly over 7,000 tonnes permonth, from the mine, Omland said.

Ivernia sold 46,200 tonnes of lead metal in concentrate formin 2010 from the operation, which it describes as the world'slargest lead carbonate mine.

There have been a number of work stoppages at the mine overthe years due to environmental concerns.

Worries about lead poisoning has led to many mine closuresacross the world in recent years and some countries haverestricted the use of the metal in paints and cosmetics.

The government of Western Australia approved thetransportation and operating conditions for the mine in July.

Shares of the company rose 11 percent to 10.5 Canadian centsin morning trading on the Toronto Stock Exchange on Thursday.

(Reporting by Maneesha Tiwari in Bangalore; Editing by DonSebastian and Sriraj Kalluvila)

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