UPDATE 1-FNX Mining CEO John Lill steps down

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TORONTO, Aug 5 (Reuters) - FNX Mining (FNX.TO: Quote, Profile, Research) said on Tuesday that John Lill had resigned as the company's CEO after less than one year in the role, and will be temporarily replaced by the company's current executive chairman and former CEO, Terry MacGibbon.

The Toronto-based nickel and copper miner said Lill had stepped down to pursue other interests, but it said he will remain with the company until Aug. 31 in a consulting capacity to enable an orderly transfer of duties.

FNX spokesman David Constable said Lill's resignation after less than a year at the helm caught the company by surprise.

"He decided that for whatever reason -- whether he has something else to go to, whether he wants to take some time off, or whether the job just didn't fit -- clearly he decided to submit his resignation and move on," Constable said.

He said MacGibbon's turn as CEO would likely be an interim arrangement until a replacement can be found.

Lill, an engineer by training, took over as chief executive from MacGibbon just last September. Lill joined the company's board in 2005.

FNX currently operates three mines in Ontario's nickel-rich Sudbury basin. The company got a foothold in the region by buying up properties and dormant mines in 2002 from nickel producer Inco, which is now part of Brazilian mining giant Vale (VALE5.SA: Quote, Profile, Research). (Reporting by Cameron French; Editing by Peter Galloway)