* Sable, ArcelorMittal in talks over use of line
* Spare capacity availability unclear
* Miners will have to pay for line expansion
* Building a second rail line is also an option
By Stephen Eisenhammer and Silvia Antonioli
LONDON, Jan 15 (Reuters) - ArcelorMittal will have to sharethe Liberian rail line it is using to export iron ore with SableMining and others miners in Guinea who request access, Liberia'sfinance minister Amara Konneh said on Wednesday.
Liberia, which neighbours Guinea, has an existing rail linkto the Buchanan port in the Atlantic and offers a far shorterexport route from deposits such as the giant Simandou projectand Mount Nimba in Guinea, which is vital for mines to beprofitable at current prices.
The rail line is currently operated by ArcelorMittal, the world largest steelmaker.
"ArcelorMittal is open to the multi-use of the rail becauseit is enshrined in the mineral development agreement signed withthem. The government of Liberia would like to use its rail asmuch as possible for economic integration that is going tobenefit both sides," he told Reuters.
"So this year I will be travelling between Guinea andLiberia bringing all the stakeholders together so that we canclose this deal (between Sable and ArcelorMittal)."
The Guinean government has so far granted permission toexport through Liberia only to Sable Mining, which isaiming to start production in 2015 and hit 5 million tonnes peryear output after that.
To allow more companies to use the line though works need tobe undertaken to expand its capacity and the companies wishingto use such lines will have to pay the bill for that, theminister said.
Adding a second rail line is also an option, he added.
A spokeswoman for ArcelorMittal said the firm is willing todiscuss availability on the Yekepa to Buchanan railway withthird parties who may want to use available surplus capacitywithout interfering with ArcelorMittal Liberia operations.
It is unclear whether ArcelorMittal currently has spareavailability for third parties but the steelmaker is ramping upits iron ore mining operations in Liberia and expect itsproduction will grow from around 4 million tonnes a year to 15million in 2015.
MOUNT NIMBA
The Guinean government granted iron ore miner Sablepermission to export through Liberia in October, which couldincrease the viability of its Nimba project.
Sable then signed a memorandum of understanding (MOU) inNovember with the Liberian government.
"The two government have agreed that they (Sable) will useLiberia and the Buchanan port to export ore from Guinea but justneed to get the two companies to agree on the costs," he said.
Export through Guinea is also critical for the other MountNimba deposit owned by major miner BHP Billiton and goldminer Newmont.
BHP has been in talks over its 40 percent stake in thedeposit with mining venture B&A Mineracao, co-founded by theformer boss of Brazil's Vale Roger Agnelli, over thelast few months.
A source close to the deal said the possibility to have anexport route through Liberia is vital to the sale.
Konneh said the other companies developing the Mount Nimbadeposit are also welcome to export through Liberia.
"The question is about increasing the capacity so that thecoming of these companies doesn't hinder ArcelorMittaloperations in Liberia," he said.
"We are discussing on how to make that increase happen. Thecompanies who want to use (the rail) will finance that."
Rio Tinto had also initially looked at exporting iron orefrom its slice of the massive iron ore deposit Simandou throughLiberia.
Rio Tinto however has late agreed with the Guineangovernment to develop a trans-Guinean route which would providewider benefits to Guinea but would take longer to develop andinvolve multi billion investment.
Guinea's president Alpha Conde said in November he wasconfident of investor commitments to fund the costlyinfrastructure.
Liberia has "medium-term" plans to launch an internationalbond but will first seek a debt rating, Konneh told Reuters inan interview on Wednesday.
