* Newcrest restarts second part of its key gold mine
* Cadia mine was damaged by earthquake in April (Adds detail, outlook)
Sept 13 (Reuters) - Australia's Newcrest Mining Ltd NCM.AX on Wednesday said it had restarted production at a second part of its flagship Cadia gold mine, which was damaged in an earthquake in April.
Australia's largest independent gold miner said output had started in Cadia's 'Panel Cave 1', with production there expected to return to normal levels by the end of next March.
In April, an earthquake forced the company to suspend operations at the mine in eastern Australia, cutting production by half in the June quarter. Output at 'Panel Cave 2' began in July. continued suspension of some mining activity at Cadia - the company's biggest and lowest-cost source of gold - led to a 55-percent fall in gold output at the mine in the June quarter from the previous quarter.
Earlier this year, Newcrest had estimated production from Cadia in the September quarter to be above the June quarter, but said it would remain below pre-earthquake levels.
Remediation and upgrade work at the 'Panel Cave 1' is ongoing and is expected to be completed by the end of December, the company said in a statement to the Australian Securities Exchange on Wednesday.
Shares in Newcrest edged up in early trading on Wednesday, roughly in line with broader markets in the country.