Developer Decmil Group gained ground on Thursday after winning a $75 million contract with resources goliath BHP to expand a mining accomodation village in Western Australia.

The contract covers the first phase of a $105 million project to upgrade and expand Mulla Mulla village.

The expansion will support BHP Billiton Iron Ore’s operations at Mining Area C and the future proposed South Flank project.

Works are expected to begin immediately.

The stock (ASX:DCG) closed 5 per cent higher at $1.30, capitalising the company at roughly $225 million.

Decmil Group's share price at the end of Thursday. Source: Investing.com
Decmil Group’s share price at the end of Thursday. Source: Investing.com

Source: Investing.com

Decmil currently has project teams at several major WA iron ore projects. This contract adds to Decmil’s almost 40 years of experience as a contractor to the sector and a long relationship with BHP’s Iron Ore division.

News comes after Decmil won an $13 million contract with BHP to build Mulla Mulla village at South Flank in August.