TORONTO, Feb 6 (Reuters) - FNX Mining (FNX.TO) has canceled a $100 million line of credit, and plans to cut costs beyond the production cuts and layoffs announced late last year, the Canadian nickel and copper miner said on Friday.

In a statement outlining 2009 production expectations, FNX said it had decided not to renew the line of credit due to borrowing costs that have increased "dramatically".

"Market conditions beyond FNX's control indicate that there would be significant costs to renew the (line of credit)," the company said.

With a C$130 million cash hoard and no debt, the company said it was funded through the end of the year and would not need to borrow to stay on its 2009 operating plan.

FNX suspended most of its nickel production last year and laid off 307 workers due to the sharp fall in the metal's price. It has continued to produce copper and precious metals from its mines, which are located in Sudbury, Ontario.

The company sells concentrate from the mines to Brazil's Vale (VALE5.SA), which became the main miner in the region when it bought Canada's Inco in 2006.

Nickel prices MNI0 have dropped 56 percent since the beginning of last year as the slumping global economy has eroded demand for building materials. The metal was around $5.20 a pound on Friday.

FNX expects to ship 679,000 tons of ore this year, producing 35.2 million pounds of payable copper, 3.7 million pounds of payable nickel, and 58,000 ounces of platinum, palladium and gold.

Costs are expected to be $146 a ton, and FNX will continue to review further cost-cutting options throughout the year, it said.

FNX shares were up 38 Canadian cents, or 9.3 percent, at C$4.48 on the Toronto Stock Exchange on Friday, rising alongside other base metals miners as copper prices surged.

Hg