Oct 14 (Reuters) - Canadian miner Quadra FNX Mining Ltd said its full-year copper output will come in at the lower end of its forecast, even as quarterly payable copper production rose 9 percent sequentially.

Quadra expects 2011 consolidated copper production to be at the lower end of its previously forecast range of 240 million pounds plus or minus 10 percent.

The company said third-quarter copper production rose to 60 million pounds, while nickel production rose slightly to 3 million pounds.

Quadra also signed a term sheet with Xstrata Plc's nickel business to use the diversified miner's Craig mine shaft in Ontario to develop its Levack mine.

Under the terms of the deal, Quadra will pay $10 million during the first year of operation and only operate the Craig shaft and underground infrastructure. Quadra will not undertake mining from the property, the company said in a statement.