Decision to be announced in mining royalty battle between two of Australia’s richest women
The WA Supreme Court will decide which of Australia’s rival mining dynasties is entitled to billions of dollars in royalties and assets.
The ruling will close a chapter in a long-running legal fight between two companies owned by Australia’s richest woman, Gina Rinehart, and her billionaire friend Angela Bennett.
Ms. Bennett’s family business, Wright Prospecting (WPPL), is suing Ms. Rinehart’s company, Hancock Prospecting (HPPL).
The companies founded by West Australian iron ore pioneers Peter Wright and Lang Hancock are embroiled in a dispute over a decades-old agreement between the two men, known as the Hanwright partnership, which sets out how royalties and assets will be divided between their families.
Hope Downs is currently jointly owned by Rio Tinto and HPPL, with both companies holding a 50 percent 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) receives a 2.5 percent concession from the iron ore project and
WPPL believes it is entitled to half of this royalty collected by HPPL.
If they are successful in the legal case, the Wright family company could be eligible to receive hundreds of millions of dollars in royalties from the 1.25 percent royalty that dates back to 2007, when HPPL and Rio Tinto began mining in the area.
The company also wants to split assets with HPPL 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 own a 25 per cent stake in the operation, while Rio Tinto would hold a 50 per cent stake.
However, HPPL maintains that an agreement was made to secure the apartments in East Angelas after the two men lost the licence, and that this was never included in the partnership agreement.
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 partnership.
The outcome of the dispute may also have financial consequences for other parties involved in the proceedings.
Ms. Rinehart’s children, John Hancock and Bianca Rinehart, are co-defendants in the case, which involves a separate legal battle involving their mother over the family trust left to them by their grandfather.
The children claim their mother transferred the shares and acquired a smaller stake in Hancock Prospecting and have filed separate lawsuits.
Ms Rinehart had previously said this was to correct an earlier problem with her father, Lang Hancock.
If a court rules against HPPL, this will affect the rights transferred to the beneficiaries of the trust.
DFD Rhodes is the family business of Lang Hancock’s long-time business partner, Don Rhodes.
The company is seeking a 1.25 percent share of royalties from the Hope Downs production.
The outcome of the case could also have consequences for Rio Tinto, as it affects who will benefit from profits from the Hope Downs mines.
A hearing to resolve the dispute began in 2023, with Judge Jennifer Smith issuing her decision almost three years later.
Judge Smith will decide which parties are entitled to any copyrights or assets, but the exact figure for how much is owed will be determined at a separate hearing.
