SANTIAGO, Nov 9 (Reuters) - The world's biggest copper producer, Chile's Codelco, aims to lock in most of its sales for 2010 via contract and cut back on spot sales as the market recovers, a local newspaper quoted the company's head as saying on Monday.

Codelco [CODEL.UL] aims to sell around 80 percent of its copper via contracts in 2010 and keep spot sales below 20 percent, after spot sales rose in 2009, daily Diario Financiero quoted Chief Executive Jose Pablo Arellano as saying.

The global financial crisis hammered demand for the metal used to make electricity lines and cars last year, dragging down copper prices from historic highs of around $4 per pound.

"I hope that this year (2010) sales will normalize because clients now have a clearer view of what their sales will be like," Arellano told the paper.

"Last year there was great uncertainty in the market. Now there is less, but the signs point to an incipient recovery."

Copper prices MCU3 rallied to $6,602 a tonne in London on Monday after Codelco raised 2010 premium charges for Asian costumers, improving the demand outlook for top consumer Asia. [ID:nL9384119]

Codelco raised its term premium to the Japanese port of Yokahama to $75 a tonne in 2010 and to $74 for South Korean buyers, industry sources said. [ID:nT230071]

Top buyer China is up next to start talks with Codelco to decide on its 2010 premiums after getting a 32 percent cut for 2009 on a weak demand outlook.

Unlike most top copper miners that have seen their output slide during the global downturn Codelco has been able to increase production due in great part to its star Gaby mine. If the upward-trend continues, the state-run company could finally put an end to years of dwindling output in 2009.

Codelco said last month its copper production rose 16 percent in the January-September period compared with a year earlier to 1.21 million tonnes. Including Codelco's 49 percent stake in El Abra mine, production totaled 1.27 million tonnes. Freeport-McMoran (FCX.N: Quote, Profile, Research) controls El Abra. (Reporting by Alonso Soto; Editing by Simon Gardner)