Gina Rinehart's Hancock Owes Royalties on Mines Owned With Rio Tinto, Court Finds

By Rhiannon Hoyle

An Australian court on Wednesday ruled that Gina Rinehart's Hancock Prospecting owes royalties to two rival mining families on some iron-ore operations it owns with mining giant Rio Tinto.

According to the judgment, which follows more than 15 years of litigation, Rio Tinto would be liable for some of the royalties owed from the Hope Downs mines to Wright Prospecting and DFD Rhodes. The amount due to the companies would be decided at a separate hearing at a later date.

The dispute dates back to deals made decades ago between Rinehart's father, Lang Hancock, and his business partners Peter Wright and Don Rhodes, to develop iron-ore deposits in Western Australia's remote Pilbara region.

"At the heart of the issues raised by the parties to the proceedings were a number of formal agreements made decades ago between men who were friends or colleagues who for some years engaged in harmonious and co-operative arrangements to explore, discover and prospect for iron ore in the East Pilbara," Western Australia Supreme Court Justice Jennifer Smith said in a summary judgment.

One of the main issues "was who held the beneficial ownership of the Hope Downs and East Angelas exploration licences when these were first acquired in 1988 and 1989 by Hancock Mining" and who now holds the beneficial interest in the 50% share of the Hope Downs mining lease held by a subsidiary of Hancock Prospecting, said Justice Smith.

She dismissed claims against Hancock relating to its ownership of the assets. However, she ruled that both Wright Prospecting--or WPPL--and DFD Rhodes, companies controlled by the descendants of Hancock's business partners, should be paid some past and future royalties on parts of the operations.

In a statement, Hancock said that "any amounts payable regarding royalties and interest to WPPL or Rhodes is a shared responsibility with our partner Rio Tinto." Hancock said it welcomed the court's decision confirming its ownership of the assets.

Rio Tinto acknowledged "the decision of the Court today and will now fully consider the judgment in detail," a spokesperson said in emailed remarks.

A spokesperson for Wright Prospecting said it welcomed the decision.

"The decision is lengthy and complex," the person added. "We will review it in detail before determining if any further steps need to be taken."

DFD Rhodes couldn't immediately be reached for comment.

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

April 15, 2026 05:40 ET (09:40 GMT)