The housing project will include a conservation corridor under a memorandum of understanding signed between the miner and the New South Wales Government using the majority of the company's surplus land.

Coal & Allied project director of land development Keith Dedden said the proposed development will provide benefits to the environment and the local economy.

"The number of homes that are proposed for this development will require basic infrastructure and services such as roads, energy, transport, water, sewer and communications," Dedden said.

"This housing construction and infrastructure requirements have huge potential for the region."

Dedden said the project would in turn create new jobs, with more than 6000 jobs estimated to be created over the 15-year life of the proposed development.

"The huge environmental benefits of this proposal are already well documented in the memorandum of understanding that Coal & Allied has signed with the State Government to transfer 80 percent of our surplus land in the area to complete a long sought after conservation corridor," Dedden said.

"This land transfer under the MoU will help protect and preserve at least 15 species of threatened flora and fauna by maintaining and enhancing wildlife corridors and protecting areas of well-known habitat from clearing and fragmentation, creating what has been described as a 'green lung' around Newcastle.

"By investigating residential and employment generating development in the remaining 20 percent of our surplus land, it is in turn opening up huge opportunity for economic stimulus as well as helping to meet the State Government's population and employment targets, as contained in the Lower Hunter Regional Strategy."

Coal & Allied is currently organising community workshops for residents in Minmi and Black Hill to enable them to have their say about proposed development in those areas.

Meanwhile, the company is working on concept and project plans for its proposed residential development in Gwandalan, Nords Wharf and Catherine Hill Bay, which are expected to be submitted to the State Government this month.

Coal & Allied is a member of the Rio Tinto Group.