UPDATE 1-Timminco posts bigger loss on solar slump

* Q3 net loss C$0.15/shr vs loss C$0.13/shr

* Analyst forecast loss of C$0.07/shr

* Says making progress in silicon refining process (Adds details)

VANCOUVER, British Columbia , Nov 10 (Reuters) - Timminco Ltd (TIM.TO) reported a deeper quarterly loss on Tuesday on the back of a continued slump in demand from the solar energy industry.

The Canadian company, which has developed its own method of purifying silicon metal into solar-grade silicon to make solar power cells, said it lost C$18.5 million ($17.6 million), or 15 Canadian cents a share, in the third quarter.

That compares with a loss of C$13.7 million, or 13 Canadian cents a share, in the same period last year.

Sales at Timminco, which also produces silicon metal used in the chemical, aluminum and electronics sectors, dropped sharply to C$19.1 million from C$69 million.

On average, analysts had expected a loss of 7 Canadian cents a share on revenue of C$19.3 million, according to Thomson Reuters I/B/E/S.

"We continue to make progress in our efforts to meet the higher quality demanded by our solar-grade silicon customers in the current market environment where there appears to be a large supply of low-priced polysilicon," Heinz Schimmelbusch, Timminco's Chairman and Chief Executive said in a statement.