Australia's Port Hedland iron ore exports to China hit record high in Oct

SYDNEY, Nov 5 (Reuters) - Iron ore exports to China from Australia's Port Hedland, which handles about a fifth of the global seaborne market, rose 10 percent in October from September, setting a record and highlighting why massive work is under way to dig more Australian mines.

October shipments to China of 25.2 million tonnes were up 43 percent from a year before, data released by the Port Hedland Port Authority show.

Total (NYSE: TOT - news) iron ore exports from the port in October were flat compared with September at around 29.0 million tonnes but up 33 percent from a year earlier.

Port Hedland is used by BHP Billiton (NYSE: BBL - news) , Fortescue Metals Group and Atlas Iron (Other OTC: ATLGF - news) to ship iron ore cargoes, which are expected to exceed 200 million tonnes this year.

BHP recently raised its full-year iron ore output target, aiming to capture more of the growing market for raw materials in China.

BHP's rivals are also expanding in Australia's western iron ore belt. Rio Tinto (Xetra: 855018 - news) (RIO.AX RIO.L) is racing to lift annual output by 10 percent to 290 million tonnes, while Fortescue is well on its way to raising production to 155 million tonnes.

The Port Hedland figures do not include shipments by Rio Tinto, which uses different Australian ports.

Outside of Australia, the world's biggest iron ore miner, Brazil's Vale, is expanding output to a planned 480 million tonnes by 2018.

Shipments to Japan via Port Hedland in October fell to 1.6 million tonnes from 2.2 million in September. Shipments to South Korea dropped to 1.4 million tonnes from 2.9 million.

China is likely to rely more on imports for iron ore supply as its domestic iron ore production and grade are declining, according to an official with China Iron and Steel Association (CISA).

China's imported iron ore accounted for nearly 70 percent of its total consumption in 2012, according to the official.