Hancock Prospecting loses royalties claim to Wright family in landmark ruling

Gina Rinehart's Hancock Prospecting has lost its bid to retain royalties from the Hope Downs iron ore project, as the Western Australian supreme court ruled that Wright Prospecting is entitled to 50% of both past and future royalties. Justice Jennifer Smith stated that Wright Prospecting successfully made its contractual claim, which could be seen as a 'half loss half win' for both parties.

Wright Prospecting's spokesperson welcomed the decision, noting, "Wright Prospecting commenced this action to recover our share of royalties from the Hope Downs 1-3 mines. That claim has been upheld." The court dismissed Wright Prospecting's claim to ownership of other mining assets held by Hancock Prospecting.

The legal battle, which began over 15 years ago, revolved around rights to the Hope Downs mining complex, a joint venture between Hancock Prospecting and Rio Tinto. The complex has been lucrative, generating an $832 million profit for Hancock Prospecting in 2025. Wright Prospecting's heirs, including billionaire Angela Bennett, argued they were entitled to an equal share of the 2.5% royalties from Hope Downs, asserting that they never relinquished the assets. Hancock Prospecting countered that it was the legitimate owner, having undertaken all the work and financial risk associated with the development.

The judgment is expected to be extensive, exceeding 1,600 pages, and comes after a trial that took place in mid 2023. Senior executives from Hancock Prospecting were present during the hearing, indicating the significance of the ruling for the company’s financial outlook and operational strategy.