UPDATE 1-Glencore among 9 shortlisted for Greek Larco sale

* Nine firms shortlisted for ferronickel producer Larco

* Glencore, Mytilineos, Cunico, Solway among contenders

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ATHENS, Aug 26 (Reuters) - Glencore International AG [GLEN.UL], the world's biggest commodity trader, is among nine contenders shortlisted as possible strategic investors in Greek ferronickel producer Larco, the Greek government said on Wednesday.

Switzerland-based Glencore has expressed interest in a stake in Larco, one of the world's biggest producers of the steel alloy, jointly with Swissmarine Inc. as part of a Cyprus based-consortium, the Finance ministry said in a statement.

Greece, scrambling to cut its budget deficit, is looking for an investor to turn loss-making Larco around. The company had a pretax loss of 116 million euros ($166.1 million) last year on sales of 284 million.

Larco earnings were hurt by falling demand for nickel, higher production costs for electricity and hedging deals which went sour.

The government plans to divest an initial 3 percent stake in Larco to a strategic investor, ultimately eyeing the sale of a controlling stake.

Other contenders include Greek metals and energy group Mytilineos (MYTr.AT), Greece's biggest contractor Ellaktor (HELr.AT) and mining company Cunico Resources, a joint venture of Israel-based Bein Stein Group Resources (BSGR) and International Mining Resources (IMR).

Russia's Solway Industries, Luxembourg's Fevamonitico SARL and Greek steel producer Hellenic Halyvourgia have also expressed interest.

The contenders will be asked to submit binding binds in the next phase of the tender, the ministry said.

Greece owns 35 percent of Larco with National Bank (NBGr.AT) and Public Power Corp (DEHr.AT) holding 36.4 and 28.6 percent respectively. ($1=.6983 Euro) (Reporting by Harry Papachristou; Editing by Jon Loades-Carter)