TORONTO - North American Palladium Ltd. (TSX:PDL) said Tuesday it has started to restart operations at its Lac des Iles mine in northwestern Ontario and expects to produce its first concentrate in the second quarter of 2010.

The company said it plans to hire approximately 150 people, increasing the operation at the mine to 180 employees when the mine resumes operations.

The underground operations at the mine are expected to produce about 140,000 ounces of palladium per year over a two-year period.

Mining will not resume in the open pit as it was near the end of its life when it was placed on care and maintenance, however if metal prices rise enough existing stockpiles of lower grade ore could be milled, the company said.

North American Palladium said it expects capital expenditures to be total about $4 million and capitalized preproduction operating costs to be approximately $10 million.

The company also said that it will start initial development of another zone at the project including a 1,500-metre ramp over a depth of 200 metres that will cost approximately $16 million.

North American Palladium also owns and operates the Sleeping Giant mine in Quebec that is expected to achieve commercial gold production at the start of 2010 at a rate of 50,000 ounces per year.