Plans for joint State/BHP investment of $12M in Port Hedland

12/10/95

Exciting new plans were announced today about the benefits the Pilbara town of Port Hedland will receive from BHP's decision to build a direct-reduced iron plant in the region.

In Port Hedland today, Resources Development Minister Colin Barnett and BHP Iron Ore Group General Manager Dick Carter announced plans for BHP to join the State in investing about $12 million in the region, over and above the $1.5 billion being spent to establish the nation's first iron ore processing plant.

Mr Barnett said a core part of the investment would include spending $7 million, shared equally with BHP, to rejuvenate the South Hedland residential region to improve community, leisure and recreational facilities.

The South Hedland Enhancement Scheme had been established to improve the social aspects of the area and, with the help of the Port Hedland Town Council, would work to improve the area through the creation of parks and gardens and the realignment of much of the confused road system.

"This investment will go a long way towards enhancing the quality of life for South Hedland residents and provides a practical example of how local communities can reap the rewards of the new wave of development the State will see over the coming years," Mr Barnett said.

The Minister said BHP's commitment to develop a $1.5 billion direct-reduced iron/hot briquetted iron (DRI/HBI) plant in Port Hedland hailed the beginning of a new era of development for the Pilbara.

"The direct-reduced iron project and associated developments involving BHP will be a major boost for the region, with up to 1,500 people expected to move into the area during the project's construction," Mr Barnett said.

The Minister said the South Hedland residential area, which was home to almost three-quarters (predominantly BHP and Government properties) of Port Hedland's 11,000 residents, was designed in the late 1960s and was based on a radical concept of 'European' village and pedestrian-based living which was not suited to the climate and lifestyle of the Pilbara region.

Mr Barnett said the scheme would help to correct planning mistakes of the past.

The Minister said the South Hedland Enhancement Scheme would be carried out during the next three years.

About $1 million was expected to be spent on South Hedland this financial year, followed by $3 million in the next two subsequent years.

In addition to the South Hedland Enhancement Scheme, the State Government would spend a further $5 million to provide infrastructure for the Boodarie industrial estate where the direct-reduced iron plant would be built, including $2.5 million for the establishment of a sealed access road from South Hedland to the DRI plant.

Mr Barnett said the DRI plant and the provision of such services would help to attract industries to form a major processing hub in the Pilbara, providing a further boost to Port Hedland.

A special steering committee, chaired by former Roebourne Shire President and State Government representative Robyn Crane, and involving BHP, Pt Hedland Town Council and the Pilbara Development Commission, would seek community input on the appropriate ways to improve the South Hedland region.

The council has already identified a number of specific projects such as connection roads, new parks, recreation areas and improving existing ovals. Other social aspects will also be considered.

A special office has been opened this week in South Hedland to allow residents easy access for input into the scheme.

Media contact:  Carolyn Vicars 222 9699/222 9595