Hancock Prospecting

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Hancock Prospecting Pty Ltd
Private
IndustryMining and Agriculture
PredecessorHancock Prospecting Limited
Hancock Resources
Hanwright Pty Limited
Hancock & Wright Limited
Founded25 November 1955 (1955-11-25)
FounderLang Hancock
HeadquartersPerth, Western Australia, Australia
Number of locations
Multiple projects in Australia and in the UK
Key people
Mrs Gina Rinehart
(Executive Chairman)
ProductsIron ore and thermal coal; and
Joint venture activities in ferruginous manganese, uranium, molybdenum, lead, zinc, gold, diamonds, and petroleum
OwnerGina Rinehart
Hope Margaret Hancock Trust[1]
SubsidiariesHancock Coal Pty Limited
Hancock Alpha West Pty Limited
Websitewww.hancockprospecting.com.au

Hancock Prospecting is a leading Australian owned mining and agricultural business run by Executive Chairman Gina Rinehart and CEO Garry Korte.

Established in 1955, the company is chaired by Gina Rinehart, estimated to be the wealthiest person in Australia, and the daughter of the company's founder, the late Lang Hancock. Upon resuming the Executive Chairmanship, Mrs Rinehart took over a company that was in a perilous financial position with significant debt and major assets mortgages and under threat of seizure.

Hancock holds the rights to some of the largest land leases in the Pilbara region of Western Australia, containing the world's largest iron ore deposit.

It is owned by Gina Rinehart (76.6%) and the Hope Margaret Hancock Trust (23.4%).[1]

In August 2016, former politician Sophie Mirabella is now the general manager of media relations for this company.[2]

Activities[edit]

The Hancock Group of Companies are holders of numerous iron ore leases in the Pilbara. The leases cover an area of 500 square kilometres (190 sq mi) predominantly in the Central Pilbara region and contain mineable reserves of Brockman and Marra Mamba ore of over 850 million tonnes. Leases in the Eastern Pilbara region contain mineable reserves of Marra Mamba ore of over 2 billion tonnes, and over 500 million tonnes of ferruginous manganese in their Nicholas Downs Project,[3] which is a joint venture with mining services company Mineral Resources Limited.[4][5][6]

In 2011, the company was estimated to be earning about A$870 million in revenue per year.[7] This is based on a 50% share of profits generated at the Hope Downs mine which is operated by Rio Tinto. Hope Downs production levels of 30 million tonnes per year and current prices (around US$140 per tonne) generate over A$2 billion in revenue, and about A$700 million in net cash. In addition, the company receives a 1.25% royalty from iron ore sales by Hamersley Iron (a Rio Tinto subsidiary) which delivers about A$170 million a year.

Hancock Prospecting exploration activities are done under the Jacaranda Alliance, a joint venture between Hancock, Minerals Australia Pty Ltd, and several former executives of Rio Tinto.[8] Exploration and evaluation work on uranium, molybdenum, lead, zinc, gold, diamonds and petroleum deposits are conducted in Australia, Papua New Guinea, New Zealand and South East Asia.

As of 2016, Hancock Prospecting began to diversify its interests into the cattle industry, acquiring 67% of S. Kidman & Co.[9]

At stages of its trading, the company has been known as Hancock Prospecting Ltd, Hancock Resources, Hanwright Pty Ltd, Hancock & Wright Ltd, and Hancock Prospecting Pty. Ltd.

Hancock Prospecting significantly funds the Institute of Public Affairs (IPA), paying the IPA $2.3 million in financial year 2016 and $2.2 million in financial year 2017,[10] which represents one-third to a half of the IPA's total revenue in those years.[11] These payments were not disclosed in IPA annual reports,[12] and Rinehart's daughter Bianca Hope Heyward submitted in court that the Hancock Prospecting payments were credited to Rinehart in an individual capacity.[10] Gina Rinehart was made a life member of the IPA in November 2016.[13]

Hope Margaret Hancock Trust[edit]

In 1988 Lang Hancock established the Hope Margaret Hancock Trust, nominating Rinehart as trustee, with his four grandchildren named as beneficiaries.[14] The Trust owns a quarter of the shares in Hancock Prospecting.[15] In 2011 Rinehart's daughter, Hope Rinehart Welker, commenced a commercial action in the New South Wales Supreme Court for reasons understood to be related to the conduct of the trustee.[16] The action sought to remove Rinehart as sole trustee. Her brother, John, and sister, Bianca, were later revealed as parties to the dispute.[17][18][19]

In an agreement reached between the parties, the Court granted an interim non-publication order in September 2011. In making the interim order, Justice Paul Brereton stated: "This is not the first occasion of discord in the family, which has immense wealth, no small part of which resides in the trust. In the past, the affairs of the family, including such discord, has attracted considerable publicity in the media."[20] Then, in a judgement handed down on 7 October 2011, Justice Brereton stated that he intended to dismiss an application by Rinehart, that there be a stay on court action, and that the family be directed into mediation.[14][21] In December 2011, three justices of the NSW Court of Appeal lifted the suppression orders on the case. However, a stay was granted until 3 February 2012[22] and extended by the High Court of Australia until 9 March 2012. Rinehart's application for suppression was supported by Ginia Rinehart, but was opposed by Hope, John and Bianca.[23] A subsequent application by Rinehart for a non-publication order on the grounds of fear of personal and family safety was dismissed by the NSW Supreme Court on 2 February 2012.[24] In March 2012, when the suppression order was lifted, it was revealed that Rinehart had delayed the vesting date of the trust, which had prompted the court action by her three older children.[25]

Rinehart stood down as trustee during the hearing in October 2013.[26] While Rinehart's lawyers subsequently declared any legal matters closed, John and Bianca's legal representatives proceeded with a trial in the NSW Supreme Court to deal with allegations of misconduct, whereby Rinehart was accused of having "unclean hands".[27] As of October 2013 it appeared likely that the matter would be settled by the court appointing a new trustee.[28]

Projects[edit]

See also[edit]

References[edit]

  1. ^ a b Hannah Low (May 13, 2014). "'Think very carefully': Gina Rinehart's daughter Hope Welker warned by lawyer". Sydney Morning Herald.
  2. ^ [1]
  3. ^ a b "Nicholas Downs". Current projects. Hancock Prospecting. 2012. Archived from the original on 20 March 2012. Retrieved 23 February 2012.
  4. ^ "Hope Downs Iron Ore Project". Current projects. Hancock Prospecting. 2012. Archived from the original on 20 March 2012. Retrieved 23 February 2012.
  5. ^ Ball, Yvonne (19 July 2002). "Hancock strikes it hot on Hope Downs iron ore". The Age. Australia. Retrieved 23 February 2012.
  6. ^ "Hope Downs mine development application submitted" (Press release). Rio Tinto. 16 March 2006. Archived from the original on 15 July 2011.
  7. ^ Thomson, James (7 February 2011). "Gina Rinehart's great resources rush". SmartCompany. Archived from the original on 17 April 2012. Retrieved 2 February 2012.
  8. ^ "Jacaranda Alliance". Current projects. Hancock Prospecting. 2012. Archived from the original on 20 March 2012. Retrieved 23 February 2012.
  9. ^ "Morrison approves Rinehart's cattle empire purchase". ABC News. 9 December 2016. Retrieved 23 November 2017.
  10. ^ a b "Rinehart v Rinehart - NSW Caselaw". www.caselaw.nsw.gov.au. Retrieved 2018-07-19.
  11. ^ "Billionaire Mining Magnate Gina Rinehart Revealed As Key Donor to Australian Climate Science Denial Promoter Institute of Public Affairs". DeSmogBlog. Retrieved 2018-07-19.
  12. ^ "Bid to involve Barnaby Joyce an attempt to embarrass former deputy PM, says magnate" Check |url= value (help). Sydney: dailytelgraph.com.au. 6 July 2018. Retrieved 6 July 2018.
  13. ^ Rinehart, Gina. "Mrs. Rinehart made an Honorary Life Member of the Institute of Public Affairs (IPA)". Gina Rinehart.
  14. ^ a b Hall, Louise; Pennells, Steve (8 October 2011). "Rinehart's children win first round". The Sydney Morning Herald. Retrieved 8 October 2011.
  15. ^ Amy Dale (13 March 2012). "Australia's richest woman Gina Rinehart accused of offering her eldest daughter money to drop legal action". Herald Sun.
  16. ^ Dale, Amy (13 March 2012). "Australia's richest woman Gina Rinehart accused of offering her eldest daughter money to drop legal action". Herald Sun. Retrieved 13 March 2012.
  17. ^ Pennells, Steve; Hall, Louise (10 September 2011). "Three siblings revealed in Rinehart court feud". The West Australian. Retrieved 10 September 2011.
  18. ^ Pennells, Steve; Hall, Louise (9 September 2011). "Gina Rinehart sued by daughter". The West Australian. Retrieved 9 September 2011.
  19. ^ Shanahan, Leo; Burrell, Andrew (9 September 2011). "Another family feud for Gina Rinehart". The Australian. AAP. Retrieved 9 September 2011.
  20. ^ Shanahan, Leo (14 September 2011). "Rinehart gags media on family trust fund dispute". The Australian. Retrieved 15 September 2011.
  21. ^ Madden, James (8 October 2011). "Gina Rinehart's children in bid to oust their mother". The Australian. Retrieved 8 October 2011.
  22. ^ Hall, Louise (14 January 2012). "Airing of dirty linen to come in three weeks". The Sydney Morning Herald. Retrieved 2 February 2012.
  23. ^ Hall, Louise (2 February 2012). "Family feud details to stay secret for at least five more weeks". The Sydney Morning Herald. Retrieved 2 February 2012.
  24. ^ Robinson, Natasha (2 February 2012). "Gina Rinehart's safety 'at risk', court told in suppression bid". The Australian. Retrieved 2 February 2012.
  25. ^ Dale, Amy (13 March 2012). "Days away from being billionaires, Gina Rinehart locks trust for half a century". The Daily Telegraph. Australia. Retrieved 13 March 2012.
  26. ^ Ferguson, Adele (12 October 2013). "Family feud over matters of trust". The Sydney Morning Herald.
  27. ^ Shanahan, Leo (2 October 2013). "Gina Rinehart exits bitter family row over trust". The Australian. Retrieved 1 October 2013.
  28. ^ Shanahan, Leo (14 October 2013). "Family trust battle a 'kamikaze' mission, Gina Rinehart's lawyers say". The Australian.
  29. ^ http://www.mineralresources.com.au/upload/docs/2008%20ASX%20Announcements/8%20Aug%2008%20-%20MRL%20Formalises%20Contract%20with%20Hancock%20Prospecting%20(110.86%20Kb).pdf