Hancock Prospecting facts for kids

Hancock Prospecting Pty Ltd is a major Australian company. It focuses on mining and agriculture. The company is led by Executive Chairman Gina Rinehart and CEO Garry Korte. Over the years, it has been known by several names, including Hancock Prospecting Ltd and Hanwright Pty Ltd.

Gina Rinehart owns most of Hancock Prospecting (76.6%). The remaining 23.4% is owned by the Hope Margaret Hancock Trust.

The company was started in 1955 by Gina Rinehart's father, Lang Hancock. Hancock Prospecting holds important mineral rights. These rights are for large areas of land in the Pilbara region of Western Australia. When Gina Rinehart became the Executive Chairman, the company was facing big financial challenges. She worked to improve its situation and make it successful.

Exploring and Mining Australia's Resources

Hancock Prospecting has a long history in the mining industry. It began in the late 1930s when Lang Hancock teamed up with his friend, Peter Wright. Their partnership was called Hanwright.

Discovering Iron Ore Treasures

In the 1960s, Hanwright made an agreement with Rio Tinto. This deal gave Hanwright a 2.5% share of all iron ore sold from their discoveries in the Pilbara. This agreement has been very valuable over the years.

Hancock Prospecting owns many iron ore leases in the Pilbara. These leases cover a huge area, about 500 square kilometers. They contain massive amounts of iron ore, including Brockman and Marra Mamba types. There are also large reserves of manganese in their Nicholas Downs Project. This project is a joint venture with another company, Mineral Resources Limited.

Earning from Mining Operations

In 2011, the company was estimated to earn around A$870 million each year. This came partly from its 50% share of profits from the Hope Downs mine. The Hope Downs mine, run by Rio Tinto, produced about 30 million tonnes of iron ore annually. This generated over A$2 billion in revenue.

Hancock Prospecting also received a 1.25% royalty from iron ore sales by Hamersley Iron. This royalty brought in about A$170 million a year.

Expanding Exploration and Farming

Hancock Prospecting continues to explore for new resources. They look for uranium, molybdenum, lead, zinc, gold, diamonds, and petroleum. These exploration activities happen across Australia, Papua New Guinea, New Zealand, and Southeast Asia.

Since 2016, Hancock Prospecting has also expanded into the cattle industry. They bought a 67% share of S. Kidman & Co, a large cattle business.

Legal Matters with Wright Prospecting

In 2023, the descendants of Peter Wright, through Wright Prospecting, started a legal case against Hancock Prospecting. Wright Prospecting claimed that the original agreement between Hancock and Wright meant certain assets should have been divided. They sought their half of the 2.5% royalties, which would be 1.25% of all profits. They also argued that parts of the Hope Downs mine were shared assets.

The Hope Margaret Hancock Trust

In 1988, Lang Hancock set up the Hope Margaret Hancock Trust. He named Gina Rinehart as the trustee. His four grandchildren were named as the beneficiaries. This Trust owns a quarter of the shares in Hancock Prospecting.

Family Legal Dispute

In 2011, Gina Rinehart's daughter, Hope Rinehart Welker, started a legal action. This action was about how the Trust was being managed. Her brother, John, and sister, Bianca, later joined the dispute.

The court issued an order to keep the details of the case private at first. A judge noted that this was not the first time there had been disagreements in the wealthy family. In December 2011, a higher court lifted the privacy orders. It was revealed that Rinehart had delayed when the trust's assets would be fully given to the beneficiaries. This delay was what led to the court action by her three older children.

Gina Rinehart stepped down as trustee during the hearing in October 2013. However, the legal representatives for John and Bianca continued with a trial. They wanted the court to appoint a new trustee for the Hope Margaret Hancock Trust.

Key Projects of Hancock Prospecting

Hancock Prospecting is involved in several major mining projects across Australia:

• Balfour Downs Station Manganese Operation: This project is northeast of Newman. It is a joint venture with Mineral Resources Limited.
• Hope Downs mine: Located northwest of Newman, this is a joint venture with Rio Tinto.
• Roy Hill project: This large project is south of Port Hedland. It is a joint venture between Hancock Prospecting (70%), Marubeni (15%), POSCO (12.5%), and China Steel Corporation (2.5%).
• Alpha Coal project: Found in the Galilee Basin in Central Queensland.
• Kevin's Corner coal project: Also located in the Galilee Basin in Central Queensland.
• Nicholas Downs mine: Northwest of Newman, this is another joint venture with Mineral Resources Limited.

See also

• Pilbara historical timeline