Plan may double Australia Newcastle coal exports

SYDNEY Dec 12 (Reuters) - Exports from Australia's Newcastle coal port, the world's largest, could double under a state government expansion plan, Port Waratah Coal Services Pty, one of the operators at the port said on Friday.

The proposal by the New South Wales state government calls for a fourth terminal, potentially doubling the capacity to export coal, Port Waratah said in statement.

"Whilst some details need to be sorted, the plan appears to strike a balance between giving existing miners the certainty they need to invest in infrastructure and increase output, and giving new entrants the certainty they need to access the port," Port Waratah Chairwoman Eileen Doyle said in the statement. Bottlenecks resulting in coal vessels idling near the port have constrained exports to customers in Asia and added to miners' costs, helping drive coal prices to record highs earlier this year, though prices have since recoiled.

No time frame was given for the proposed expansion, although Port Waratah was expecting clearance to proceed with a framework following approval by Australia's competition regulator in the next several weeks.

Doyle said there was an urgent onus on the govenment and coal miners to demonstrate that the plan can work.

Xstrata Plc (XTA.L), Rio Tinto Ltd/Plc (RIO.AX)(RIO.L) and BHP Billiton Ltd/Plc (BHP.AX)(BLT.L) each use the port along with a handful of smaller mining companies.

Separately, Australian Prime Minister Kevin Rudd earlier on Friday pledged part of a A$4.7 billion ($3.15 billion) infrastructure construction package to increase rail capacity from coal mines in the Hunter Valley to Newcastle [nSYD233540]. (Reporting by James Regan)