UPDATE 1-Penoles suspends operations at Naica mine in northern Mexico

(Adds details on closure of mine, background on marketconditions)

MEXICO CITY, Oct 13 (Reuters) - Mexican mining companyPenoles said on Tuesday it had suspended operationsat its lead, zinc and silver-producing Naica mine in the northof the country, delivering another jolt to metal marketsfollowing recently announced output cuts elsewhere.

Output at Naica, which Penoles called Mexico'ssecond-richest lead mine, had been halted "for an undefinedperiod" due to force majeure after serious flooding, the companysaid.

Penoles had already suspended production at the mine in thestate of Chihuahua in January because of flooding.

Naica in 2014 produced 19,694 tons of lead, 15,399 tons ofzinc and 1.9 million ounces of silver representing 25 percent, 6percent and 3 percent respectively of consolidated mining outputduring that period, Penoles said in a statement.

Still, the company said it did not foresee any "significantimpact" resulting from the move.

The suspension is the latest in a series of recentlyunveiled production cuts that have bolstered prices on theLondon Metal Exchange. Glencore announced late last week itwould suspend 500,000 tons of annual zinc output, triggering a12-percent rally on Friday, the biggest ever one-day gain.

While Naica represents a much smaller loss, the moveillustrates the deepening pain for producers as they battle weakprices.

Penoles said it had reached the decision after nine monthsof trying to clear enough water from the mine to reopen it, andthat it was now in talks with the local miners' union to put anend to the collective work contract at the site.

The Naica move follows a series of other big mine closuresearlier this year including MMG's huge Century zinc mine inAustralia, and Ireland's Lisheen, owned by India's Vedanta. (Reporting by Veronica Gomez and Josephine Meson; Editing byChristian Plumb)

Glencore