Australian billionaire and mining magnate, Gina Rinehart, and her mining company Hancock Prospecting has been ordered to give up half of its revenue royalties from the Hope Down Mine in a long-standing, multibillion-dollar legal battle.
The Western Australian supreme court ordered Hancock to pay 50% of past and future revenue royalties to Wright Prospecting based on agreements set in the 1950–60s by Rinehart’s late father, Lang Hancock, and business partner, Peter Wright.
Wright Prospecting is estimated to receive hundreds of millions in the share of ore from the Western Australian mine site, while Hancock retains ownership of the tenements.
Justice of the Supreme Court of Western Australia Jennifer Smith also dismissed Rinehart’s eldest children, John Hancock and Bianca Rinehart, and their claims to an equity share under a trust arrangement established by their grandfather.
Justice Smith says the claims failed at the first hurdle.
Hancock Executive Director Jay Newby says the Supreme Court has “decisively confirmed” family ownership of the mining assets.
“The primary issue in these proceedings is ownership of the Hope Downs and East Angelas tenements,” Newby says.
“Hancock Prospecting (HPPL) welcomes the WA Supreme Court decision which decisively confirms HPPL’s rightful ownership of these tenements, firmly rejecting the baseless ownership claims of John, Bianca, and Wright Prospecting in their entirety.”
Another former business partner Don Rhodes and his company DFD Rhodes also sought royalties from the dispute. DFD Rhode’s claims were partially successful in the legal bid.
DFD Rhodes CEO Matt Keady says the company is pleased with the outcome of the battle.
“We are very, very pleased that the court has recognised the contribution of Don Rhodes to the iron ore industry,” Keady says.
Hancock’s Newby says the annual royalty claims by Wright and Rhodes will amount to $14 million and $4 million, respectively.
Write to Maddison Elliott at Mining.com.au
Images: Hancock Prospecting
