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WA Court Grants Wright Prospecting Half of Hope Downs Royalties as It Dismisses Ownership Bids

The ruling refocuses the dispute on royalties rather than ownership.

Overview

  • Justice Jennifer Smith, who delivered the decision Wednesday, found Wright Prospecting is entitled to 50 percent of royalties from the Hope Downs iron ore operation for past and future production.
  • The court rejected Wright Prospecting’s push for an ownership share in the East Angelas tenements known as Hope Downs 4, 5 and 6, and it dismissed ownership claims by Gina Rinehart’s children John Hancock and Bianca Rinehart.
  • DFD Rhodes won a partial royalty claim linked to a 1960s deal, which Hancock Prospecting said would cost about A$4 million a year, and Hancock Prospecting said any payments would be shared with joint‑venture partner Rio Tinto.
  • A separate hearing will set the size of back payments and interest, with Wright Prospecting’s advisers estimating roughly A$800 million to A$900 million, and the parties are expected to appeal the judgment.
  • Hope Downs is a Rio TintoHancock Prospecting joint venture built on the mid‑20th‑century Hanwright partnership and a 2.5 percent Rio Tinto royalty, so the ruling keeps control with Hancock Prospecting but shifts a large stream of cash to the Wright family.