UPDATE 1-Rio in force majeure on some iron ore shipments

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By James Regan

SYDNEY, Sept 3 (Reuters) - World No. 2 iron ore miner Rio Tinto Ltd/Plc (RIO.AX)(RIO.L) has declared force majeure on some of its iron ore shipments after an accident involving a rail car damaged an ore dumper at an Ausralian port, the company said on Wednesday.

"Rio Tinto Iron Ore has advised its customers of this incident under its force majeure provisions," it said.

"While the damage assessment and repair programme is underway rail and shipping schedules will be amended to minimize any capacity loss," it said.

The incident occurred on August 31 at the company's Cape Lambert export terminal, where Rio Tinto operates two dumpers. Another three dumpers operate from the company's nearby Dampier terminal.

One of the rail cars hauling ore from Rio's outback mines to the port became jammed in the dumper, causing the disruption, the spokesman said.

No one was hurt and engineers were assessing the damage, he said.

The incident has led to partial suspension of iron ore unloading at Cape Lambert, according to the spokesman.

"We don't believe there is any significant damage to the dumper," the spokesman said, adding it could take about two weeks to fully repair.

In the meantime, ships arriving to load ore will be directed to Dampier, which could result in loading delays of around three days, the spokesman said.

Rio Tinto still expects to ship around 190 million tonnes of ore this year, the spokesman said.

At that level it ranks as the second largest producer behind Brazil Vale (VALE5.SA)RIO.N and ahead of rival BHP Billiton Ltd/Plc (BHP.AX)(BLT.L), which uses its own terminal at Port Hedland to export its ore.

BHP was forced to idle one of its mines for a day last week following the death of a worker in an industrial accident. [nSYD334592]

The traded market for iron ore is sensitive to any disruptions to supply amid a global shortage brought on by growing orders from Asian steel makers.

Competition for ore has enabled Rio, BHP and other Australian miners to raise contract prices by around 86 percent this year. (Editing by Peter Blackburn)