A Western Australian Supreme Court has ruled that mining royalties from the Hope Downs iron ore operations, worth hundreds of millions of dollars, must be shared between Hancock Prospecting, owned by Australia’s richest woman Gina Rinehart, and Wright Prospecting, tied to the rival Rhodes family mining dynasty. The landmark decision marks a significant development in a protracted legal dispute between two of the nation’s most prominent mining dynasties.

The dispute centered on long-standing royalty agreements related to mining assets in the Pilbara region, specifically at Hope Downs and the East Angelas mine sites. Justice Jennifer Smith delivered the ruling after a lengthy legal process that included a 51-day trial and more than two years of deliberation. The court determined that Wright Prospecting’s claim to 50% of past and future royalties from the Hope Downs mines was valid. However, Wright Prospecting’s bid for ownership interests in Hancock Prospecting’s East Angelas assets was rejected.

In addition to Wright Prospecting’s partial victory, DFD Rhodes—another company linked to the Rhodes family—was also awarded entitlement to royalties from portions of mining leases covering Hope Downs and East Angelas. Meanwhile, Gina Rinehart’s children, John Hancock and Bianca Rinehart, lost their claims for ownership stakes in the assets, with the court dismissing their defense early in the proceedings.

Justice Smith emphasized in her ruling that it would be unfair to allow Wright Prospecting to reap all benefits from the development of the East Angelas mining areas without having borne any of the associated risks over the years. The decision effectively grants both Hancock Prospecting and Wright Prospecting partial success, splitting the entitlement to royalties.

Hancock Prospecting Executive Director Jay Newby said the court affirmed that the mining tenements were properly owned by Hancock, which had solely funded exploration, development, and infrastructure investments for decades before securing joint venture partners and financing. Newby highlighted that there had been no meaningful contribution or risk-taking by Wright Prospecting, the Rhodes family, or Rinehart’s children in advancing the mines. He also noted that any royalty payments owed would be shared with Rio Tinto, Hancock’s joint venture partner, which has its own royalty obligations.

A spokesperson for Wright Prospecting expressed satisfaction with the ruling, stating that it upheld the company’s efforts dating back to litigation initiated in 2010 to recover their rightful share of royalties from operations at Hope Downs 1-3 and parts of Hope Downs 4-6. The spokesperson indicated that Wright Prospecting planned to carefully review the lengthy court judgment.

This ruling closes a chapter in a longstanding legal feud stemming from a royalty and asset-sharing agreement known as the Hanwright partnership, forged decades ago between mining pioneers Lang Hancock and Peter Wright. The partnership stipulated how royalties and interests from iron ore operations in the Pilbara were to be divided between their families. The court’s decision affects the legacy of this historic alliance and has significant financial implications for both parties.