* Eldorado, Goldcorp launch competing offers for Andean

* Eldorado makes script offer worth C$3.4 bln at 32 pct premium

* Goldcorp trumps with agreed script deal worth C$3.6 bln

* Andean shares halted after jumping 31 percent (Recasts with Gold Corp bid, detail)

SYDNEY, Sept 3 (Reuters) - A takeover battle has erupted for Australian-listed gold miner Andean Resources Limited with Canadian miners Goldcorp Inc and Eldorado Gold Corp making bids for the firm.

El Dorado's announcement early Friday that it had offered C$3.4 billion ($3.23 billion) in shares for Andean was followed shortly by Goldcorp's announcement of its C$3.6 billion bid, also in stock.

At stake is Andean's 100-percent owned Cerro Negro Gold project in the southern province of Santa Cruz in Argentina.

Cerro Negro is the company's advanced-stage gold exploration project, which preliminary studies suggest may have resource of 3.1 million ounces of gold and 25 million ounces of silver as of March 2010, according to the company's website.

Goldcorp said its deal was expected to close in late 2010 or early 2011 and had been been unanimously approved by the boards of directors of both companies. [ID:nASA00PIB]

Eldorado is offering 0.31 of its shares for each Andean share, valuing Andean at C$6.36 a share, or a third higher than Andean's Thursday close.

Andean shares jumped 30.9 percent in Sydney trading to A$6.4 before it was placed on trading halt.

The announcements come a few months after Newcrest Mining bought local rival Lihir Gold for $8.4 billion to create the world's fourth-largest listed gold miner. [ID:nSGE657007] <^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ For a dealtalk on gold M&As [ID:nSGE67T085]

Analysis on gold [ID:nLDE67O21Q]

For a factbox on Q2 gold demand trends [ID:nLDE6030VM]

For a graphic on gold demand http://r.reuters.com/faf67n

For Reuters Insider on gold being a good bet [ID:nRTV136169] ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Gold prices are hovering near a record high with global economic uncertainty driving investors to safer havens.

With Eldorado's deal, Andean shareholders would end up owning about 24 percent of the combined company, Eldorado said.

The mining sector is leading the global M&A activity, which recorded $267 billion worth of deals in August, making it the biggest month since June 2009, Thomson Reuters data showed.

The materials sector has seen a 30 percent rise in deals with global miner BHP Billiton leading the charge with a $39 billion offer for Canda's Potash .