Hancock Prospecting records $680M rare earths loss

• Gina Rinehart's Hancock Prospecting faced an estimated $680 million drop in value across its rare earths holdings over the past year.
• The drop was largely led by a decline in MP Materials (NYSE:MP), which accounted for roughly two-thirds of the total paper loss.
• The company stated that its critical minerals investments are structured around a long-term strategy focused on assets with strong development potential.

Hancock Prospecting recorded an estimated $680 million paper loss on its rare earths portfolio over the past year as market valuations fluctuated.

The drop compares with prior gains for the private firm, including a previous 300 per cent surge in key holding MP Materials (NYSE:MP) following a major deal with the US Department of Defence.

"Our investments in companies with projects yet to be developed take a long-term view," a spokesperson from Hancock Prospecting said.

The paper losses stemmed primarily from holdings in MP and Lynas Rare Earths (ASX:LYC), while Hancock Prospecting also maintains an 8.4% stake in MP valued at US$834 million.

The private resources group has directed $4 billion into critical minerals, including lithium, copper, and rare earths, to support supply chain diversification outside of China.

The strategic investments include a cornerstone position in Liontown Resources (ASX:LTR) alongside holdings in international miners Hudbay Minerals (NYSE:HBM) and Teck Resources (NYSE:TECK).