Gina Rinehart Wins Legal Battle Against Rio Tinto
October 13 2015 - 10:40PM
Dow Jones News
SYDNEY—Rio Tinto PLC must pay royalties to companies run by
Australia's richest person Gina Rinehart and the heirs of her late
father's former business partner from iron ore it digs up in two
areas of the Pilbara region in Western Australia, according to a
High Court ruling against the mining giant.
Rio Tinto, one of the world's biggest mining companies, argued
it wasn't liable to pay royalties on property acquired 45 years ago
from Ms. Rinehart's Hancock Prospecting Pty Ltd. and Wright
Prospecting Pty Ltd.--operated by the family of Peter Wright, the
former partner of Ms. Rinehart's late father Lang Hancock. Rio
Tinto's case centered on it having briefly relinquished control of
some of the land during the 1970s.
The mining area in question is home to Rio Tinto's Channar mine,
operated in joint venture with Sinosteel Corp., and Eastern Range
mine, which it runs with Shanghai Baosteel Group Corp.
On Wednesday, Australia's High Court ruled unanimously against
Rio Tinto.
The Australian court found Rio Tinto "is liable to pay royalties
to Wright Prospecting and Hancock Prospecting in respect of iron
ore mined in two areas of the Pilbara region of Western Australia
known as Eastern Range and Channar," according to a judgment
summary published by the High Court.
A spokesman for Rio Tinto declined to comment. A spokesman for
Hancock Prospecting wasn't immediately available. A spokesman for
Wright Prospecting acknowledged the ruling, but wouldn't comment
further.
Rio Tinto, the world's No. 2 exporter of iron ore, an ingredient
used in steelmaking, has itself been grappling with a sharp
downturn in prices for that commodity. In August, Rio Tinto
reported a more-than 80% slump in first-half profit, as a global
oversupply of iron ore dragged the material's price to a decade
low.
Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com
Subscribe to WSJ: http://online.wsj.com?mod=djnwires
(END) Dow Jones Newswires
October 13, 2015 22:25 ET (02:25 GMT)
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