Richest Australian Gina Rinehart ordered to share mining fortunes
What's the story
Gina Rinehart, Australia's wealthiest person with an estimated net worth of A$38 billion ($27 billion), has been ordered by a court to share some of her riches. The ruling comes after a protracted legal battle over her father's iron ore ventures that she inherited in 1992. The case was centered around Hope Downs, one of Australia's largest iron ore projects, and involved claims from two of Rinehart's children and heirs of her father's business partners for royalties and mining rights.
Verdict
Mining rights remain with Rinehart
The Supreme Court judge ruled that while Rinehart must pay past and future royalties to her rival heirs, but the mining rights will remain hers. The court heard an agreement was drawn up by Rinehart's father Lang Hancock and his business partner Peter Wright to manage their joint interests under a business called Hanwright. During a 51-day trial in 2023, Wright's children claimed Rinehart breached this agreement and owes them mining rights and royalties from Hope Downs.
Financial implications
Rio Tinto paid A$832M to Hancock last year
Hope Downs is run by global mining giant Rio Tinto and Hancock Prospecting, Rinehart's company. Last year, it contributed A$832 million to the company's coffers. The court heard that Rio Tinto pays a 2.5% royalty to Hancock Prospecting, with Justice Jennifer Smith ruling half of this belongs to the Wright family. "Wright Prospecting won half of its case, lost half of its case, and Hancock Prospecting... has won and lost half of its case," Smith said.
Family dispute
Claims by Rinehart's children denied
Two of Rinehart's children, Bianca and John Hancock, claimed their mother moved lucrative mining rights out of a family trust to a part of the business they couldn't touch. They alleged their grandfather intended to share wealth from Hope Downs with them but Rinehart denied them access. However, while their claims over the rights were denied, another bid for royalties from Hope Downs by late engineer Don Rhodes's family was partially granted.
Statement
Response from various parties
Hancock Prospecting's Executive Director Jay Newby welcomed the court's decision, saying it confirmed the company's ownership of Hope Downs, and "firmly rejecting" claims by Wright's family and two of Rinehart's children. A spokesperson for Wright Prospecting also welcomed the decision, saying it was "pleased to finally receive a result in our favor." Notably, Rinehart is one of Australia's largest private donors to sports, charities, and conservative political parties.