Gina Rinehart’s Hancock Prospecting has lost a significant legal battle and will be required to share royalties from the Hope Downs iron ore project. The Western Australian supreme court ruled in favor of Wright Prospecting, awarding them 50% of past and future royalties.
The judgment stems from a decade-long dispute over the spoils of Hancock Prospecting’s iron ore projects and whether they should be shared with the family of Rinehart’s late father’s business partner. The ruling could impact Rinehart’s position as Australia’s wealthiest person.
Hancock Prospecting, along with Rio Tinto, will pay potentially hundreds of millions of dollars in royalties to the descendants of the former business partner. While Hancock Prospecting retains ownership of the major iron ore hub, the court found Wright Prospecting had successfully made its contractual claim.