UPDATE 1-Australia Port Hedland reopens to iron ore ships

* BHP continues to monitor storm for heavy rains, wind

* Australia's largest gold mine at Telfer shuts (Adds details, Telfer gold mine closure, BHP quote)

SYDNEY Dec 22 (Reuters) - Australia's Port Hedland, one of the country's two main iron ore export terminals, reopened undamaged after a severe cyclone passed, the port's operator said on Tuesday.

The Indian Ocean port, expected to handle more than 175 million tonnes of iron ore exports this year with China its biggest destination, was shut earlier this week. Freighters were sent to safe harbours as Cyclone Laurence packing winds near 300 km per hour made its way to the far west Australia coast.

The cyclone was heading east after touching land and had lost most of its punch, dumping more than 200 mm of rain across parts of the Pilbara iron ore belt, according to the Australian Bureau of Meteorology.

BHP Billiton (BHP.AX), the port's main user, said it was continuing to monitor the storm as it still generated winds up to 150 km per hour.

BHP, which expects to mine 155 million tonnes of iron ore this year, warned on Monday that heavy rains generated by Laurence could interrupt its operations.

Fortescue Metals Group Ltd (FMG.AX) and Atlas Iron Ltd (AGO.AX) also use Port Hedland to ship iron ore.

Australia's largest gold mine has also been temporarily closed due to the heavy rains, owner Newcrest Mining Ltd (NCM.AX) said.

Mining was suspended at the Telfer deposit in the eastern Pilbara early on Tuesday and was not expected to resume until Wednesday. (Reporting by James Regan)