Community concerns are likely to delay BHP Billiton’s $20 billion plans to expand its mining operations in the Pilbara.  These concerns stem from the impact of the growth in the fly in fly out workforce on Port Hedland.

BHP’s plans for a 6,000 bed temporary donga style camp are likely to be scaled back after the Port of Hedland Council recommended that proposed plans be changed in a number of key areas including the size of the camp.

According to The Financial Review, the Mayor of Port Hedland said the council was responding to community concerns about the size and longevity of the camp.  However, State Labor MP Tom Stephens is quoted as saying BHP is a “big frightening company” and it is difficult for local leaders to hold their ground against its influence. BHP also contributes substantial funds to the Town of Port Hedland.

The rapid expansion of fly in fly out mining operations is a hot issue as State governments grapple with the needs of regional communities and the needs of mining companies.  Fly in fly out mining operations are preferred by mining companies during the peak construction phase of major projects. But it comes at an economic and social cost to local communities.

With the median house price in Port Hedland for a basic fibro cottage above $1 million and rent often topping $1800 per week housing availability and affordability is a problem in many of these remote communities.  Flying in workers is cheaper for many companies.   

The use of fly in fly out labour is currently the subject of a Federal Government inquiry.  The CEPU submission can be read here and other submissions viewed here.

Read here for more about the particular issue at Port Hedland.