UPDATE 1-Australia's Midwest says worth at least A$7/share

(Adds details, CEO comment)

SYDNEY, March 19 (Reuters) - Australian iron ore prospector Midwest Corp (MIS.AX: Quote, Profile, Research, Stock Buzz) said on Wednesday it is worth at least A$7 a share, 25 percent above a hostile takeover offer made last week by Chinese metals trader Sinosteel Corp.

Sinosteel Corp is offering A$954 million ($883 million), or A$5.60 a share, for the Midwest shares it does not already own, the first hostile bid by a Chinese firm in Australia's mining sector.

"For the whole of the company, or control of the company, there needs to be some premium paid for that," Midwest Chief Executive Bryan Oliver told a media briefing.

"We believe our pipeline of projects can deliver shareholder value in excess of A$7," Oliver said.

Midwest stock jumped 31 percent to A$5.43 last Friday after Sinosteel made its overture, still short of the offer price, suggesting there may not be competing suitors. The stock was 0.54 percent higher at A$5.55 in afternoon trading on Wednesday.

Sinosteel already owns 19.9 percent of Midwest.

Oliver said Sinosteel's move may just be the first salvo in what he called a "mandate" by Beijing directing Chinese companies to acquire mining companies in Australia to break a dependence on ore from mining giants Rio Tinto Ltd/Plc (RIO.AX: Quote, Profile, Research, Stock Buzz) (RIO.L: Quote, Profile, Research, Stock Buzz) and BHP Billiton Ltd/Plc (BHP.AX: Quote, Profile, Research, Stock Buzz) (BLT.L: Quote, Profile, Research, Stock Buzz).

"The strategy of the Beijing government is to resist the majors and to consolidate alternative sources of supply, he said.