Iron ore miner Mineral Resources has secured approval from the town of Port Hedland to construct a 500-700 room camp to house workers from its Pilbara projects.
Construction of the camp is expected to result in cost savings of at least $27 million per annum for MinRes once operational, a research note from stockbroker Octa Phillips said.
The Town of Port Hedland said the base rental rates proposed for the project would be $15 per square metre, equating to $750,000 in the first year.
MinRes will also pay $911,460 in annual community contributions, funds which will be funnelled to the development of community facilities.
The town said it would likely receive around $17.7 million in revenue over the 10-year life of the project, including the community contributions.
The Town of Port Hedland and MinRes will now work to finalise the leasing agreement.
