Long running legal stoush between mining heiresses Gina Rinehart, Angela Bennett over billions in mining royalties nears climax
One of Australia’s longest-running mining disputes between Australia’s richest woman Gina Rinehart and iron ore heiress Angela Bennett is nearing its head in court.
Billions of dollars hang in the balance as the Supreme Court of Western Australia decides whether Ms Rinehart (prominent miner Hancock Prospecting) or billionaire mining magnate Angela Bennett is entitled to royalties and assets from lucrative iron ore holdings at Hope Downs.
Hope Downs was discovered in the 1950s by Western Australian iron ore pioneers Lang Hancock and Peter Wright; Their enterprises surpassed mining dynasties.
The families behind these dynasties are fighting to preserve their stakes in Hope Downs, with a major legal conflict over for now.
The Pilbara-based mining facility is currently jointly owned by Rio Tinto and Hancock Prospecting, which Ms Rinehart owns, with each company holding a 50 per cent stake.
The project produces approximately 50 million tonnes of iron ore each year and generates hundreds of millions of dollars in royalty payments to those who share in its profits.
Hancock Prospecting (HPPL) is receiving a 2.5 percent concession on the iron ore project.
The company is defending a lawsuit brought against it by Wright Prospecting (WPPL), a family business controlled by Mr Wright’s descendant and mining heiress Angela Bennett.
The Wright family business believes it is entitled to half the 2.5 per cent royalties and 25 per cent of the assets from three Hope Downs flats under an agreement made by Mr Hancock and Mr Wright.
This could mean that WPPL receives a 1.25 percent royalty from Hope Downs, worth hundreds of millions of dollars, dating back to when mining began in the area in 2007 under Rio Tinto and HPPL.
They also want to split HPPL’s assets in the East Angelas deposits, which are covered by three Hope Downs apartments that have been in operation since 2013 and are valued at more than $1 billion.
If successful, this would mean HPPL and WPPL would each hold a 25 per cent stake in the operation, while Rio Tinto would hold a 50 per cent stake.
However, HPPL maintains that it exclusively owns the iron ore assets it developed with Rio Tinto and assumes all financial investment and operational responsibilities outside the Hanwright agreement.
Gina’s children, John Hancock and Bianca Rinehart, are also part of the hearings dealing with how royalties and assets are divided.
The couple had been fighting their mother for a larger share of their mining royalties, claiming that their grandfather Lang had transferred shares of the family trust he set up for his grandchildren to their detriment.
DFD Rhodes is a family business owned by Lang Hancock’s long-time business partner, Don Rhodes.
They also want a 1.25 percent share of royalties from the Hope Downs production.
Rio Tinto has been dragged into a dispute over the outcome of the case, which affects who will benefit from profits from the Hope Downs mines.
The WA Supreme Court will decide whether the parties are entitled to any copyright or assets, but the exact figure for how much is owed will be determined at a separate hearing.
The decision is expected to be announced on Wednesday.
