W.Australia state to sell assets as mine boom ends

SYDNEY, Aug 28 (Reuters) - Western Australia state on Thursday said it will seek to sell off a number assets, including part of the Port Hedland shipping terminal, for an estimated A$1 billion (935.60 million US dollars) to A$2 billion as its resource-heavy economy adjusts to the collapse of a decade-long mining boom.

The state's premier, Colin Barnett, said the priority was to reduce debt and regain a triple-A credit rating for Western Australia, once hailed by Barnett as the economic engine for Australia.

"These are the first assets we will open up to the market. They have been identified as priority assets for sale, Barnett said in a statement.

Moody's this week downgraded the credit rating of Western Australia to Aa1 from Aaa.

"The ratings downgrade reflects the state's ongoing deficit position, the deterioration in its debt metrics, and a growing risk that this trend may not be reversed soon," the ratings agency said.

Port Hedland's Utah Point Bulk Handling facility has been earmarked in the sell off, according to the govenrment.

The Kwinana Bulk Terminal, used to export bulk products such as liquefied petroleum gas and cement, along with the Perth Market Authority's Market City agricultural distribution arm will also be placed on the block, according to the statement.

Port Hedland's Utah Point Bulk Handling facility is one of four berths owned by the Pilbara Ports Authority. It includes a shiploader, two stockyard product storage facilities and supporting infrastructure.

In fiscal 2013 it generated A$86.5million in revenue and is likely to be sold under long-term lease, according to the statement.

It includes a shiploader, two stockyard product storage facilities and supporting infrastructure. In 2012/13, it earned $86.5million in revenue, with $44.1million in expenditure. (US dollar = 1.0688 Australian dollar) (Reporting by James Regan; Editing by Simon Cameron-Moore)