Long running legal stoush between miners Gina Rinehart, Angela Bennett over billions in mining royalties nears climax

One of Australia’s longest-running mining disputes between the country’s richest woman, Gina Rinehart, and iron ore heiress Angela Bennett is nearing its climax in court. Billions of dollars hang in the balance as the Western Australian Supreme Court decides whether Ms Rinehart - the well-known owner miner Hancock Prospecting - or fellow billionaire mining magnate Angela Bennett, is entitled to royalties and assets from the lucrative Hope Downs iron ore tenements. Hope Downs was discovered by Western Australian iron ore pioneers Lang Hancock and Peter Wright in the 1950s - their ventures leaving behind minted mining dynasties. The families behind those dynasties are now fighting to maintain their stake in Hope Downs as a massive legal clash comes to an end, for now. The Pilbara-based mining tenement is currently jointly owned by Rio Tinto and Hancock Prospecting – owned by Ms Rinehart – and each company has a 50 per cent stake. The project produces about 50 million tonnes of iron ore each year, generating hundreds of millions of dollars in royalty payments for those with a hand in its profits. Hancock Prospecting (HPPL) receives a 2.5 per cent royalty from the iron ore project. The company is defending action brought against it by Wright Prospecting (WPPL), a family-owned company of Mr Wright’s descendants that is controlled by Angela Bennett. The Wright family business believes it’s entitled to half of the 2.5 per cent royalty and 25 per cent of the assets from three Hope Downs tenements as per an agreement established by Mr Hancock and Mr Wright. It could mean WPPL earn a 1.25 per cent royalty from Hope Downs backdated to when mining began at the site in 2007 under Rio Tinto and HPPL, worth hundreds of millions of dollars. They also want to split assets with HPPL at the East Angelas deposits covered by three Hope Downs tenements that have been operating since 2013, and worth more than $1bn. If successful it would mean HPPL and WPPL would each have a 25 per cent stake in the operation while Rio Tinto would retain 50 per cent. But HPPL contends it exclusively owns the iron ore assets it developed with Rio Tinto, having shouldered all the financial investment and operational responsibilities outside of the Hanwright agreement. Gina’s children John Hancock and Bianca Rinehart are also part of the proceedings, with an interest in how the royalties and assets are shared. The pair have been battling their mother for a larger piece of mining royalties, claiming she transferred shares from a family trust set up by their grandfather Lang for his grandchildren to their detriment. DFD Rhodes is a family company of Don Rhodes, a long-time business associate of Lang Hancock. They also want a 1.25 per cent stake in royalties from Hope Downs production. Rio Tinto has been dragged into the dispute with the outcome of the court case affecting who benefits from the profits that flow from Hope Downs mines. A WA Supreme Court will decide if the parties are entitled to any royalties or assets, but the exact figure of how much is owed will be decided at a separate trial. The judgment is due to be handed down on Wednesday.