(Adds quote from child soldiers' lawyer)

By Emma Thomasson

THE HAGUE, June 27 (Reuters) - Prosecutors accused two Congolese warlords on Friday of seeking to "wipe out" an entire village and seize survivors as sex slaves and child soldiers in their second case at the International Criminal Court.

Germain Katanga and Mathieu Ngudjolo are both accused of war crimes and crimes against humanity including murder, sexual slavery, rape, inhumane acts and recruiting child soldiers.

The two allied militia leaders are accused of directing an attack in 2003 on the village of Bogoro in the north eastern Congolese district of Ituri, an area long riven by conflict over its rich natural resources including gold, diamonds and oil.

"The prosecution's evidence ... will reveal that over 200 children, women, elderly and civilian men were killed in an attack during which women were sexually enslaved in camps and repeatedly raped," said Deputy Prosecutor Fatou Bensouda.

The case has been overshadowed by a decision to halt the trial of the court's first suspect, a Congolese warlord from the other side of the Ituri conflict, over concerns he could be denied a fair trial as the defence cannot view some evidence.

The ICC was set up in 2002 as the world's first permanent criminal tribunal. It only has the three Congolese suspects in custody so far, but is also investigating war crimes in Sudan's Darfur region, Uganda and the Central African Republic.

Its first trial, that of Thomas Lubanga, had been due to start this week but judges are considering releasing him because the prosecution has withheld evidence they received on the condition of confidentiality to protect sources on the ground.

"MASSIVE SEXUAL VIOLENCE"

Defence lawyers have also asked judges to suspend the case against Katanga and Ngudjolo as the prosecution is using the same evidence, but the court decided to go ahead with Friday's hearing as the proceedings are not as advanced.

The prosecution will present evidence to support its charges so the judges can decide whether to proceed to trial. The "confirmation of charges" hearings will last several weeks and the court then has 60 days to decide to go to trial.

The Ituri conflict, which raged well after a wider peace accord officially ended Congo's 1998-2003 war, pitted foreign-backed militias from the Hema and Lendu ethnic groups against one another.

Katanga, also known as "Simba" or lion, led the Patriotic Forces of Resistance of Ituri (FRPI), while Ngudjolo headed the allied Front of Nationalists and Integrationists (FPI) militia.

The prosecution accuses their troops of shooting and hacking to death dozens of Hema civilians sheltering in a school and setting fire to houses with people still inside.

It says they committed "massive sexual violence" against women, who were given as "wives" to their captors, detained in holes in the ground and repeatedly raped.

The defence will respond to the charges next week.

Jean-Louis Gilissen, a lawyer representing two alleged child soldier victims of the accused, said hundreds of thousands of children were sent to fight in Congo.

"The damage is huge. It is more than a generation that has been sacrificed," he said. "On the ground there is a burning thirst for justice ... The justice that they wish for is one of the conditions for real peace on the ground."

Experts estimate that a decade of violence in Congo has killed 5.4 million people, mainly through hunger and disease.

Chief Prosecutor Luis Moreno-Ocampo said he hoped the cases against its three detainees would help heal Ituri.

"Perpetrators will be held accountable," he said in a statement. "The work of justice can help Ituri move forward." (Editing by Ibon Villelabeitia)