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BHP Billiton has been named as the preferred company to develop over 2.5 hectares of land in South Hedland, including a five-storey residential building.
The project will span four lots and will also include two-storey town houses, a gym, restaurants, and retail space.
According to The West Australian construction is expected to start next year and finish in late 2014.
WA Regional Development and Lands Minister Brendon Grylls said this week BHP had put forward the winning tender for the contract that would help the ongoing transformation of Port Hedland.
The project is a key part of developing South Hedland’s CBD, and is funded by The National Party’s Royalties for Regions policy.
Last month the Port Hedland council rejected BHP’s plans to build a 6,000-bed fly-in fly-out camp between Port Hedland and South Hedland.
According to WA Business News neither BHP nor the State Government were making any connection between the two projects.
The Royalties for Regions policy has budgeted $77 million for a two-stage development of South Hedland.
As well as adding 750 new dwellings over 100 hectares of land, the move has plans to realign the main street and develop a new town square.
Like mining regions in the Bowen Basin, Port Hedland is experiencing a worsening housing problem.
BHP said low-cost housing would form part of the development, and be available for the staff of some commercial businesses.