The accommodation shortage in Western Australia boom towns Newman and Port Hedland will be eased, with two big mining companies planning to jointly spend over $300 million on houses.

BHP Billiton and Fortescue Metals both plan to build hundreds of houses in Newman and Port Headland in the Pilbara region of WA. The two mining companies will build over 600 homes in total.

BHP Billiton has announced it will construct or refurbish 364 houses in Newman and Port Hedland at a cost of $190 million over the next three years.

Fortescue Metals plans to build 250 homes in Port Hedland and South Hedland - and is investigating building new houses also in Newman.

Port Hedland and Newman are both key towns in the WA iron ore industry, but unable to supply enough accommodation for mining workers as the resources boom has escalated in the state.

Both towns feature in the High Returns Hotspots report on this website.

ENDS