Hancock Prospecting facts for kids

Hancock Prospecting Pty Ltd is a big Australian company. It focuses on mining and agriculture. The company is led by Gina Rinehart, who is the Executive Chairwoman, and Garry Korte, the CEO.

Over the years, the company has had a few different names. These include Hancock Prospecting Ltd, Hancock Resources Ltd, and Hanwright Pty Ltd.

Gina Rinehart owns most of Hancock Prospecting (76.6%). The rest (23.4%) is owned by a special fund called the Hope Margaret Hancock Trust.

The company was started in 1955 by Gina Rinehart's father, Lang Hancock. Hancock Prospecting has rights to mine in large areas of land in the Pilbara region of Western Australia. This land is rich in minerals.

Gina Rinehart has said that when she took over the company, it was in a difficult financial situation. She claims it had a lot of debt and its assets were at risk. She worked to improve its financial health.

What Hancock Prospecting Does

The story of Hancock Prospecting began in the late 1930s. Lang Hancock and his friend, Peter Wright, started a partnership called Hanwright. One of their first projects was an asbestos mine.

In the 1960s, Hanwright made an agreement with Rio Tinto. This deal gave Hanwright a 2.5% share of all iron ore sold from the discoveries they made in the Pilbara.

Mining Operations

Hancock Prospecting owns many iron ore mining areas in the Pilbara. These areas cover about 500 square kilometers. They hold huge amounts of iron ore, which is used to make steel.

The company also has a joint venture with Mineral Resources. This project, called Nicholas Downs, mines ferruginous manganese.

In 2011, Hancock Prospecting earned a lot of money from its mining activities. For example, it received a share of profits from the Hope Downs mine, which is run by Rio Tinto. The company also got a royalty from iron ore sales by Hamersley Iron, another Rio Tinto company.

Exploration and New Ventures

Hancock Prospecting also explores for new mineral deposits. This work is done through a partnership called the Jacaranda Alliance. They look for things like uranium, gold, and diamonds. These exploration activities happen in Australia and other nearby countries.

Since 2016, Hancock Prospecting has also moved into the cattle business. They bought a large part of a company called S. Kidman & Co.

Legal Disputes

In 2023, the family of Peter Wright started a legal case against Hancock Prospecting. They claimed that an old agreement between Hancock and Wright meant they should share certain assets. Wright Prospecting asked for its half of the 2.5% royalties. They also argued that some parts of the Hope Downs mine should be shared assets.

Supporting Organizations

Hancock Prospecting has given a lot of money to the Institute of Public Affairs (IPA). This organization works on public policy. For example, in 2016 and 2017, Hancock Prospecting provided a large part of the IPA's total income.

Important Issues

The company's history includes some difficult moments. The founder, Lang Hancock, had very old and harmful views about Indigenous Australians. He made comments that were widely seen as racist.

For example, in a 1984 TV interview, Lang Hancock suggested ideas that were deeply offensive and harmful towards Indigenous people. These comments caused a lot of controversy.

In 2022, Gina Rinehart, the current leader of Hancock Prospecting, faced criticism. This was because she did not apologize for or speak out against her father's past comments. As a result, Hancock Prospecting withdrew a large sponsorship from Netball Australia. This happened after an Indigenous netball player raised concerns about the company's connection to these comments and its environmental record.

Hope Margaret Hancock Trust

In 1988, Lang Hancock set up the Hope Margaret Hancock Trust. Gina Rinehart was named the manager of this trust. His four grandchildren were named as the people who would benefit from it. This trust owns a quarter of the shares in Hancock Prospecting.

In 2011, one of Gina Rinehart's daughters, Hope Rinehart Welker, started a legal case. This case was about how the trust was being managed. Her brother, John, and sister, Bianca, later joined the dispute.

The family's disagreements have often attracted public attention because of their great wealth. The court tried to keep some details private at first. However, later, the court allowed the information to be made public. It was revealed that Gina Rinehart had changed the date when the trust was supposed to be fully handed over to the beneficiaries. This change led to the court action by her three older children.

Gina Rinehart stepped down as the trust manager in 2013 during the court hearing. Even though her lawyers said the legal matters were closed, John and Bianca continued with a trial. They wanted the court to appoint a new manager for the trust.

Company Projects

Hancock Prospecting is involved in several major projects:

• Balfour Downs Station Manganese Operation: This is a joint project with Mineral Resources in Western Australia.
• Hope Downs mine: A joint project with Rio Tinto in Western Australia.
• Roy Hill project: Located in Western Australia, this is a joint project with several international companies like Marubeni, POSCO, and China Steel Corporation.
• Alpha Coal project: A coal mining project in Central Queensland.
• Kevin's Corner coal project: Another coal project in Central Queensland.
• Nicholas Downs mine: A joint project with Mineral Resources in Western Australia.

See also

• Pilbara historical timeline