UPDATE 1-India's SAIL says gets half of Chiria mine

* Eyes on winning second half of Chiria

* Chiria reserves could extend to 3 billion tonnes

(Adds more quotes, details, background)

By Humeyra Pamuk

LONDON, Nov 17 (Reuters) - India's state-run Steel Authority of India (SAIL.BO: Quote, Profile, Research) has been allocated half of the reserves in the Chiria iron ore mine in the eastern Jharkhan state, an executive director at the company said on Tuesday.

"The issue about Chiria, 1 billion tonnes, has been settled in favour of SAIL," V.K. Mehta told reporters on the sidelines of a steel conference organized by Metal Bulletin.

Mehta said he expected the issue about the remaining half of the reserves would also be settled in favour of SAIL, contrary to local media reports in October saying the rest of the mine would be kept for development by private companies.

Chiria's reserves are estimated at 2 billion tonnes, but may be as high as 3 billion tonnes.