Case Study: Hancock Prospecting Group
Thursday 29 August 2019
Article by James Radford
The Hancock Prospecting Group is one of the most successful privately owned mining and agriculture companies in Australia’s history.
Executive Chairman Gina Rinehart has transformed the group from one that was in a perilous financial state into a diverse, industry-leading and international business.
Roy Hill is Hancock’s majority owned mega iron ore operation comprising a 55 million tonnes per annum integrated mine, 344km railway and port facilities.
Roy Hill secured the world’s largest debt funding package for a mainly greenfield, land-based mining project, including equipment from the USA, and assistance from American Export Credit Agencies, and has commissioned multiple fleets of pink mining trucks, locomotives and ore wagons to raise awareness about breast cancer and promote women in the mining industry.
Originally discovered and explored by Hancock Prospecting, the Hope Downs tenements have been developed after HPPL’s successful bankable feasibility study, through a joint venture with Rio Tinto which today comprises four major open pit mines producing more than 47 million tonnes per annum of high-grade lump and fines iron ore products, with more in the pipeline.
Also in the Hancock’s Australian mining portfolio is junior West Australian iron ore miner Atlas Iron, Queensland Coal Investments and a gold exploration joint venture in Bendigo Victoria.
Further afield, Hancock is the owner of the Grassy Mountain metallurgical coal project in Canada, is exploring and studying tier one copper assets in Ecuador and has a significant stake in the world’s largest polyhalite mine, Sirius Minerals located in England.
With over 25 pastoral properties in its portfolio, Hancock also has a world-class agribusiness and is Australia’s second largest producer of cattle.
Hancock's status as a major agricultural player was enhanced following the joint-venture acquisition of the iconic S. Kidman & Co pastoral company with Chinese minority partner Shanghai CRED.
Recognising the growing appetite for premium beef and dairy, Hancock produces its renowned 2GR wagyu for both local consumption and export, and is a 50 percent partner in West Australian based ethical dairy leader Bannister Downs.
With millions invested in rolling out practical and game-changing technology across its agribusiness, Hancock’s vision for agriculture is to efficiently produce the highest quality products with healthy happy cattle, while improving safety and reducing fuel and electricity usage.
A champion for the primary industries Hancock works in, Gina Rinehart is the Founder and Patron of Australia’s annual National Agriculture and Related Industries Day and National Mining and Related Industries Day. Gina Rinehart is Patron of various Olympic sports, including swimming, rowing, volleyball and synchronised swimming.
Hancock is also counted among Australia’s top private taxpayers.
Mrs Rinehart founded and chairs ANDEV (Australians for Northern Development and Economic Vision) which was founded years prior to Donald Trump’s Presidency and is based on similar economic principles to encourage investment, development, and increases in living standards (i.e. cutting tax and tape).