A Supreme Court justice has ordered Gina Rinehart’s Hancock Prospecting to pay royalties to two rival dynasties, concluding one of the most litigious and bitter battles in the nation’s corporate history.
Delivering a 1,600-page judgement on April 15, Justice Jennifer Smith ruled that the heirs of mining pioneer Peter Wright and engineer Don Rhodes are entitled to a share of the spoils from the massive Hope Downs iron ore complex in Western Australia’s Pilbara region.
The dispute centred on allegations of decades-old contract breaches and partnership agreements dating back to the 1960s.
Wright Prospecting argued that Hancock Prospecting breached a 1980s agreement, while DFD Rhodes claimed royalties based on a historical deal struck with Rinehart’s father, Lang Hancock.
Justice Smith described the outcome as a split victory, noting that while Wright Prospecting secured half of its claims, Hancock Prospecting also retained significant ground.
The 51-day trial was marked by sensational testimony, including claims from Mrs Rinehart’s children regarding their grandfather’s estate.
Despite Hancock Prospecting’s insistence that it alone bore the financial risk of developing the project, the court found the enduring partnership obligations remained valid.
With Rio Tinto (ASX:RIO) involved as a joint venture partner, the financial implications are staggering.