UPDATE 1-China Oct coal output 2nd highest, up 21.1 pct on yr

* China's raw coal output second highest on record

* Shanxi's consolidation will still take time to complete

SHANGHAI, Nov 11 (Reuters) - China's raw coal output in October rose 21.1 percent from a year earlier, up 3.8 percent on the month, the National Bureau of Statistics said on Wednesday.

China produced 273.07 million tonnes of coal in October, bringing the total output of coal in the first 10 months of the year to 2,417.72 million tonnes, up 11.4 percent from the previous year, the data also showed.

The October output figure was the second-highest on record and only the fourth month that China, the world's top coal miner, has produced more than 260 million tonnes.

The record of 279 million tonnes was achieved in June, as China raced to make up for a deep seasonal slowdown in January and February.

China's top coal producing province Shanxi has been pushing its small mines, notoriously dangerous and inefficient, to merge into large mines, a consolidation step that has curbed output from Shanxi in the past few months.

"The mines are now negotiating prices and details in the contracts, followed by technical upgrading and overhauling, but it will take time for the entire process to conclude," said Wang Ye, an analyst at CITICS Securities.

But since the data from the National Bureau of Statistics does not include output figures from small mines, industry sources said it did not reflect the real production picture. (Reporting by Eadie Chen and Jacqueline Wong)