Iron willed: what it took to build Australia’s largest private company
The Australian Mining Review speaks with Hancock Prospecting executive director Tad Watroba about Gina Rinehart’s journey to establishing her late father’s business as a bastion of Australian mining.
With a history dating back to 1955, the story of Hancock Prospecting is one of a family-owned business that went on to become a juggernaut of the Australian sector.
The names Lang Hancock and Gina Rinehart are synonymous with the Australian mining industry and rightfully so – their influence on the industry over the course of almost 67 years has been profound and put the remote Pilbara region of WA on the map.
Extensive lobbying in its early years and rapid progression and diversification of its assets continue to drive the company to new heights, with the crowning jewel the Roy Hill iron ore project, which began operations in 2014.
Boasting one of Australia’s largest single iron ore mines, Roy Hill delivers enormous economic benefits to the WA and Australian communities and employs almost 3000 employees and a host of contractors, suppliers and service providers.
Roy Hill reported a record shipment of 64mt of iron ore and delivered a $3.2b profit after tax in FY24, a stunning effort by industry standards.
While Mrs Rinehart’s interests are wide and varied, with stakes in iron ore, lithium, gas, agiculture, property and fashion, Roy Hill is the largest revenue and profit earner for its majority owner Hancock Prospecting Pty Ltd.
The Australian Mining Review speaks with Hancock Prospecting executive director Tad Watroba about how the company has grown to become Australia’s largest private company.
AMR: Can you tell me about the beginning of Roy Hill / Hancock Prospecting and what the ultimate goal was for the companies?
TW: Hancock Prospecting (HPPL) was founded by Lang Hancock in 1955 as a private family prospecting and exploration company. Proceeding this, in November 1952, Mr Hancock had made his famous discovery flight over the Hamersley Ranges, on his way to Perth, the clouds forcing him to fly low over a gorge. He later returned to that gorge and took samples of rock along about 20 miles, sending the samples more than 1,000 miles to Perth. At the time the government believed that Australia would run out of ore by 1965 and had imposed an export embargo on iron ore. Mr Hancock spent many years working to have this embargo lifted in 1960 and then lobbying the state government to remove its bans on the pegging of tenements, so that West Australia’s vast iron ore resources could be developed for the benefit of Australians.
Following the passing of Mr Hancock in March 1992, Mrs Rinehart took over as Executive Chairman of HPPL and set about saving and building the company, which was in a financially perilous state and left with many difficulties. Much of those early years of Mrs Rinehart’s chairmanship was spent dealing with legal proceedings, defending HPPL’s assets, trying to secure what would later become the successful Hope Downs deposits. HPPL gained in December 1992 a State Agreement over the Hope Downs tenements, and the following year in 1993 HPPL acquired the Roy Hill tenements. Money was short and had to be spent on defending the Hope Downs tenements, as well as trickling money into exploration and studies into Hope Downs, finalising a pre-feasibility study in 1997.
In 2005, HPPL entities entered into a joint venture agreement with Rio Tinto to co- develop the Hope Downs mines. First ore was produced at Hope Downs 1 in November 2007, and then another mine was developed at Hope 1 the next year. With Hope Downs producing, time and resources could now be spent on developing the Roy Hill project. In 2012, Equity agreements were achieved with South Korea’s POSCO, Japan’s Marubeni, and Taiwan’s China Steel Corporation, who collectively hold a 30% share of Roy Hill. Equity money was spent securing the port berths and on early development of Roy Hill. In 2014 the US$7.2b Roy Hill debt financing package was secured with five export credit agencies and 19 major international and Australian banks. The following year, in November 2015, first ore from Roy Hill was railed from the mine to Port Hedland for export.
While mineral exploration and investment was the foundation of the Hancock family business, under Mrs Rinehart’s leadership, Hancock has grown to become not only a successful mine operator and project developer but Australia’s most successful private business with significantly expanded and diversified interests in energy, agriculture, rare earths, property and some of Australia’s most iconic brands, Kidman, Rossi and Driza-Bone. Hancock Prospecting’s mission is to bring Australian mineral resources and agricultural products to market and in doing so, help secure Australia’s living standards by not only generating revenue and prosperity, but also bringing much benefit to its staff across Australia and the regions those primary and essential industries operate in.
AMR: How has the business managed to stay private for so long?
TW: HPPL has always been a family company, owned first by Mr Hancock and his wife Hope Hancock, and Mrs Rinehart, and later her children as minority shareholders via a trust. Under Mrs Rinehart’s leadership, Hancock has focused on building up a strong balance sheet and making investments in primarily Australian mining, agricultural, and energy projects, properties, and businesses. Mrs Rinehart has had a focus on paying down debt when it had to be incurred (to develop Hope Downs and later Roy Hill) as quickly as possible, to put the company on a secure footing. Throughout her chairmanship, Mrs Rinehart has shown an exceptional ability to identify opportunities, navigate complex business landscapes, and realise the benefits of strategic partnerships. Her negotiations and the securing of equity partnerships with major global enterprises including POSCO, Marubeni, and China Steel Corporation helped develop the very successful mega Roy Hill project. Under Mrs Rinehart’s leadership, Hancock has been able to build success upon success, turning Hancock around from a company facing many difficulties (including financial difficulties) 32 years ago, to being the most successful private company in Australia’s history. Given the complexity of a public company and the increasing difficulty for it to act nimbly and quickly, Mrs Rinehart has chosen to keep the family company private.
AMR: Did anyone think the business was going to become this successful when it first started out?
TW: When Hancock was founded, there was still an embargo on the export of iron ore. And a ban on pegging title to the ore! With bad government policy blocking the company’s way in the 1950s, it would have been unthinkable then to imagine the incredibly successful company Mrs Rinehart has built. Risks taken with both Hope Downs and then Roy Hill, and the difficulty of achieving approvals, meant more years never thinking the business would be this successful.
AMR: What are the keys to keeping the business so successful and private over all these years?
TW: For the thirty plus years I’ve worked for Mrs Rinehart, I would have to say one of the keys is her hard work, dedication and incredible ability to maintain a disciplined, common-sense focus, no matter the at times seemingly impossible and overwhelming hurdles. She has always seen the bigger picture when it comes to investing, her business sense is incredible and her work ethic, more incredible. Unlike most major mines which are developed by public companies, which use many thousands of shareholders’ money, Mrs Rinehart bore the risk personally, via her private family company to borrow and outlay multi millions in high-risk expenditure to progress the work needed to develop Hope Downs and later Roy Hill.
In 2014, she made history, inking a US$7.2b loan agreement for the development of Roy Hill – the biggest project financing ever completed for an onshore greenfields mining venture. Within five years, and with Mrs Rinehart maintaining a disciplined course to repay debt prior to declaring dividends, saving many hundreds of millions of dollars, Roy Hill had repaid the entire debt. Building a major iron ore project with billions of dollars worth of infrastructure, including for its rail and port, is incredibly difficult, especially for a relatively small private company, it requires great courage and tenacity.
AMR: Are there any positive news you can share across the operations?
TW: Hancock recently received the long-awaited approvals for its another iron ore McPhee project which will create 500 new jobs during construction and up to 200 new full-time positions once operational. The lengthy wait was despite the project using existing rail and port and processing plant.
Roy Hill has been recognised as Australian Mine of the Year for the second consecutive year and third time running.
Our majority owned Bannister Downs Dairy continues to receive multi awards for its produce, including recently winning both Champion Cream and Grand Champion Dairy Product for its double cream at the Australian Grand Dairy Awards.
Hancock’s and Mrs Rinehart’s support for swimming over more than a decade helped the swimmers achieve their best ever Olympics.
Driza-Bone, Rossi and Kidman opened the Brisbane Fashion Festival in August, and again presented the Bush Summit around Australia in conjunction with News Corp.
AMR: What does the future look like for Roy Hill / Hancock Prospecting?
TW: As Australia’s most successful private company and with Mrs Rinehart at the helm, and the staff loyalty Mrs Rinehart has achieved, with very low turnover in the industry, the future looks bright.
Along with a pipeline of mining projects, which require timely and workable government approvals in order to be progressed, Hancock has diversified to make considerable investments in agriculture, property, energy, and into fashion too with Rossi, Driza-Bone, and Kidman.
The acquisition of the iconic S. Kidman and Co pastoral company and 2GR wagyu cattle farms sees the award winning 2GR premium wagyu beef exported to 26 countries across North and South Asia, the Middle East, Europe and North America.
But it must be noted there are currently many obstacles to opening new mines and their supporting infrastructure, including increasingly burdensome tape, regulation and lengthy approvals processes, so government must reverse this negative trend and create a policy environment which encourages investment, or risk driving investment overseas and driving Australian living standards downwards.
AMR: Is there anything we missed?
TW: Mrs Rinehart founded National Days to celebrate the mining and agricultural industries and the industries they support, these being 22 and 21 November, respectively. She passed the Patronship of National Mining Day to me, a position of which I’m very proud, given I’ve been in the mining industry all my life, and she retained the Co-Patron position. She is also very active as Patron of the National Agriculture and Related Industries Day, with her Co-Patron being Tony Seabrook, President of the Pastoralists and Graziers Association. This year National Mining and Related Industries Day will be held at Santos, Moomba, given the importance of gas to keep our electricity going. Agriculture day will be held at Penfolds, Adelaide. Please contact Hancock events team for more details and tickets.
Roy Hill and Hancock are proud to be supporting men and women who have served and sacrificed for their country, with our industry leading Veteran Employment Program which offers direct employment pathways and a supportive work environment for veterans and ex-defence members. Under the drive and leadership of Mrs Rinehart, Roy Hill and all Hancock Prospecting businesses are taking a proactive stance in bringing more veterans into the organisation, as well as advocating for other businesses to do the same. We wanted veterans and ex-military personnel to feel valued and preferentially treated when they approach us and to create a real sense of recognition of military service to the country which they served. In a win-win situation, the Veterans Employment Program provides Roy Hill and Atlas with the special attributes veterans bring, while improving employment outcomes for defence personnel transitioning to civilian life.
It is one thing to be Australia’s most successful private company, but for staff to tell you Roy Hill is the best mining company to work for, speaks volumes and demonstrates Mrs Rinehart’s very genuine desire to provide well for her staff and contribute to their wellbeing.
Walking the talk
AMR: Tell me about Roy Hill / Hancock Prospecting’s community and philanthropy work.
TW: Roy Hill and Hancock businesses support a range of grass-roots initiatives and organisations in Port Hedland and the broader footprint of our operations. In addition to direct financial investment, the businesses are focused on partnering with community organisations to provide much needed social outreach activities and on-the-ground support to initiatives that support a positive step change in the communities in which the companies operate. They include the Royal Flying Doctor Service, breast cancer research and support, Telethon, Pilbara sporting clubs, education initiatives with local schools and community service organisations.
School programs
Hanrine Futures – a unique scholarship initiated in 2021 by Mrs Gina Rinehart AO, Executive Chairman Hancock Prospecting, which provides funding for indigenous children including school fees, boarding, mentoring, internships, work experience and extracurricular activities. There are now twenty Aboriginal students being supported in partnership with MADALAH in their education, mentoring and wrap around services. It is designed to support the student from commencement of their scholarship through to employment.
Pilbara Mentors – the Hanrine Foundation partnered with Ed Connect to introduce the first student mentoring program in Port Hedland. This supports 30 scholarships annually for Aboriginal children to attend St Cecilia’s Primary School in Port Hedland – increasing attendance, engagement and outcomes for Indigenous students.
Mirnukaru Hedland Attendance Strategy – community driven initiative to help improve school attendance. Roy Hill funded a brand new 22-seater Toyota Coaster bus along with running costs to provide daily transport to school for vulnerable and at-risk students from their homes in Port Hedland and South Hedland.
Fresh food in schools’ program – regular delivery of fresh fruit and vegetables to schools in remote Aboriginal communities increasing accessibility of fresh food and promoting healthy lifestyles.
Port Hedland school holiday programs – Roy Hill partners with the Julyardi Aboriginal Corporation to deliver school holiday programs focused on reconnecting kids to culture and country, providing catering, staff, transport, fishing and media equipment for kids to share their experiences.
Hedland school athletic and community swimming carnivals – Roy Hill provides support including supply of marquees, staff, catering, and accommodation for attendees from remote communities or those travelling long distances.
Fair Game – a weekly community health and sport program at JD Hardie Centre in Port Hedland for at risk youth. Roy Hill provide catering and volunteers to help facilitate the program, and also do community visits to hold Blue Light Discos in the remote communities of Warralong and Yandeyarra.
Community grants program
In addition to major sponsorships, Roy Hill also provides mid-tier community grants that align with its Social Impact Strategy and grass roots community grants to deliver community activities and outreach activities. Non-profit organisations can apply for financial assistance of up to $10,000 for community-based projects, which promote positive development in areas of education and training, Indigenous capacity building, improving community health, well-being or safety, and more. Since the program’s launch in late last year, Roy Hill has funded nearly 20 projects to the tune of just under $150,000.
Environmental initiatives (Energy of the Future program, net zero)
Hancock Prospecting and Roy Hill are investing in research, development and deployment of energy-efficient technology to transition its operations to alternative power sources and reduce emissions across its various businesses. Roy Hill is the first mining company in the Pilbara to invest in a 100% battery locomotive. Roy Hill has also recently taken delivery of two state-of-the-art electric buses to transport workers during their commute to and from the mine village each day.
Indigenous engagement
Roy Hill is proud of the long and trusting relationships it has developed with Traditional Owner (TO) groups over many years and support a range of projects working collaboratively with Traditional Owners to promote education, training, employment and business opportunities. All staff undergo cultural awareness training so they can learn about the importance of culture and connection to land. Roy Hill has a dedicated Indigenous Business Development Manager that works with Indigenous businesses to ensure contracting opportunities are presented to them. Atlas Iron became the first miner in the Pilbara to award contract mining services to a company with direct ties to the land’s traditional owners. Through the Hanrine Foundation (formerly the Roy Hill Community Foundation) which Roy Hill is the major funder, health, education, arts and culture programs support the wellbeing and economic capacity of land connected people where Roy Hill operates. One of the most exciting initiatives is a world-leading facial recognition program identifying rare genetic disorders in indigenous children becoming a reality through the Foundation.
Supporting athletes (Swimming WA, Volleyball Australia, Rowing Australia and Synchronised Swimming Australia)
Roy Hill is extremely proud to be, through its Executive Chairman and majority owner Hancock Prospecting, Australia’s largest supporter of Olympic sport. As part of the partnership, Roy Hill sponsored Aussie athletes competing at the Beijing 2022 Winter Olympic Games, Paris 2024 Summer Olympics and will continue to support our Olympians at the Milan-Cortina Winter Olympics in February 2026. Mrs Rinehart is the single biggest individual financial supporter of Australian Olympic sport and serves as Patron of Australia’s internationally renowned Olympic swimming, rowing, volleyball and synchronised swimming teams, whose Olympians provide important role models for Australians.
In August last year, Hancock Operations chief executive Gerhard Veldsman rallied employees and other companies to compete at Rowing WA’s inaugural Corporate Regatta, with the primary purpose of raising awareness for Telethon. The competition not only resulted in a sizeable donation to the children’s charity, but also doubled as an effective culture building opportunity. Furthermore, Gerhard identified a gap in support for the women’s youth program at Swan River Rowing Club (who hosted the Corporate Regatta) and donated a new Empacher racing hull as part of Roy Hill’s and Mrs Rinehart’s commitment to rowing in Australia. It is the first Olympic-standard 8+ in West Australia.
Workplace giving
Inspired by Mrs Rinehart’s generous and quiet philanthropy, Roy Hill and Hancock businesses have a ‘workplace giving’ program which enables employees to make direct pre-tax payroll donations to the National Breast Cancer Foundation, Telethon, and Men’s Health initiative, Movember.
Roy Hill is the only mine site in the world to have a fleet of pink trucks, pink locomotives and other pink equipment in support of breast cancer research and assistance.
