The Western Australian Supreme Court has ruled that Hancock Prospecting, owned by Australia’s richest person Gina Rinehart, and joint partner Rio Tinto must pay hundreds of millions in royalties from the Hope Downs iron ore mine to the descendants of her father’s former business partners.
Justice Jennifer Smith ruled that Wright Prospecting, representing the family of Peter Wright, and DFD Rhodes, representing the descendants of Don Rhodes, are entitled to a share of past and future royalties from specific mines within the Hope Downs complex in the Pilbara, Reuters reported.
While the exact financial liability will be determined in a separate trial, initial estimates suggest these payments could total hundreds of millions of dollars over the mine’s life.
The dispute traces back to the 1950s, when Lang Hancock and Peter Wright joined forces to secure mineral rights in the Pilbara. The legal action centered on a series of historical agreements, including a 1969 deal with Don Rhodes, which promised a percentage of royalties from ore produced in the region.
Despite the royalty ruling, the court provided a victory for Gina Rinehart regarding the ownership of the site.
Justice Smith decisively rejected claims from Wright Prospecting and two of Rinehart’s children, John Hancock and Bianca Rinehart, who had sought ownership stakes in the Hope Downs operation.
The court confirmed that Hancock Prospecting maintains its 50 per cent ownership of the mining lease.
Hancock Prospecting’s Executive Director, Jay Newby, welcomed the confirmation of the company’s “rightful ownership” of the tenements, describing the children’s claims as “baseless”.
Conversely, a spokesperson for Wright Prospecting expressed satisfaction with the royalty ruling, noting that the company would carefully review the complex judgment before deciding on any further steps.
Rio Tinto, as the joint-venture partner, is also jointly liable for the royalty payments.
A spokesperson for the miner said the company acknowledges the court’s decision and is considering the implications of the judgement.
