Australian miners push for new iron ore berths

SYDNEY, Sept 7 (Reuters) - A group of miners and prospectors want to develop an independent iron ore export terminal at Australia's Port Hedland, where BHP Billiton (BHP.AX)(BLT.L) has long been the dominant operator.

The terminal could be operational by 2013 and handle up to 50 million tonnes of iron ore per year, members of the iron ore grouping said, which would be more than a third of last year's total exports from Port Hedland.

The port's trade by tonnage is 97 percent iron ore, with the balance comprising salt, petroleum products, general cargo, livestock and acid.

The miners, operating under the North West Iron Ore Alliance (NWIOA), also want the Western Australian state government to persuade BHP into sharing rail haulage lines to Port Hedland, sources with knowledge of the situation said.

The miners, smaller newcomers to the Pilbara, have been hampered by uncertainty over how they would transport ore to export terminals due to a lack of rail service to Port Hedland.

A lack of berths and equipment needed to load millions of tonnes of ore onto freighters has further dogged attempts to develop new mines in Australia's Pilbara region, the world's single-largest iron ore deposit.

BHP is already dredging two new berths of its own to accommodate its growth projections.

A government move to force BHP and Rio to open up their rail lines to third parties in the Pilbara "was critical to finding a lasting solution to mining in the Pilbara," said Derek Humphry, chief financial officer of Brockman Resources (BRM.AX), one of four alliance members.

Humphry said the two berths dedicated to alliance members could handle up to 50 million tonnes of ore a year.

Engineers Sinclair Knight Merz have been commissioned by the NWIOA to carry out the study.

BHP Billiton this year expects to ship more than 100 million tonnes of ore via Port Hedland, Fortescue Metals Ltd (FMG.AX) 45 million-55 million and Atlas Iron (AGO.AX) 1 million tonnes. Fortescue has already built its own terminal.

Rio Tinto Ltd/Plc RIO.A<RIO.L is aiming to ship 200 million tonnes via ports it runs outside of Port Hedland.

There's been speculation that a China-funded railway connecting remote mines in the Pilbara with Port Hedland was under discussion to reduce the Chinese steel sector's reliance on BHP and Rio for ore, though such a plan is regarded as years away at best given the magnitude of laying a separate rail line.

Australian courts have ruled that BHP and Rio must haul ore mined by other companies in the Pilbara if and when they have spare rail capacity. Both companies, which legally fought against the idea for years, say they have no room to do so.

BHP and Rio want to form a partnership this year to jointly market ore from the Pilbara as each lifts production. The partnership needs government and commercial approvals and is opposed by some iron ore buyers concerned it will create a monopoly in the Pilbara.

Reuters has learned the NWIOA is lobbying to have third party rail haulage included in conditions for approval of the BHP-Rio partnership, which is being studied by Western Australia state premier Colin Barnett.

Barnett already wants to charge BHP and Rio additional stamp duty and royalties exceeding A$1 billion ($851 million) if they join forces.

BHP and Rio argue they should not be liable for additional costs since the deal is structured as a marketing arrangement and not a joint venture. ($1=A$1.175 Australian dollar) (Editing by Michael Urquhart)