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Court forces Rinehart’s Hancock Prospecting to pay rival royalties

Financial Times Companies •
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Gina Rinehart faces a court ruling that will force her Hancock Prospecting and Rio Tinto to pay mining families royalties. The decision, after more than 15 years of litigation, stems from agreements with Lang Hancock’s partners Peter Wright and Don Rhodes over Pilbara properties. The Supreme Court dismissed claims but upheld the royalty claims of Wright Prospecting and DFD Rhodes.

Rinehart’s children, Bianca and John, had lodged a separate claim arguing a trust entitled them to a larger share of Hope Downs’ output, but the court deemed their case weak. The ruling also sets the stage for a future trial to quantify the royalties, estimated at about A$14 million per year for Wright Prospecting and A$4 million for DFD Rhodes, backdated to 2007.

Rio Tinto’s involvement stems from a 2005 joint‑venture that secured Pilbara iron ore to meet Chinese demand. The court’s decision could pressure the partnership to restructure revenue sharing and may influence future mining contracts in Australia. Both parties have expressed willingness to negotiate payments, but the exact amounts will be decided later, adding uncertainty to the region’s mining severe economics.