finance
WA judge orders Hancock Prospecting and two children to pay most royalties trial costs
A Western Australia judge ruled that Hancock Prospecting, Gina Rinehart, and two of her children must cover the majority of legal costs from a royalties dispute over iron ore mines. The ruling follows an earlier decision that Hancock Prospecting owes hundreds of millions of dollars in royalties.
Audio version
Tap play to generate a narrated version.
Developing·Limited corroboration so far. This page will refresh as more sources emerge.
The order assigns 40 per cent of Wright Prospecting's costs to Wright Prospecting itself, 30 per cent to Hancock Prospecting, and 10 per cent each to John Hancock and Bianca Rinehart. The judge declined to set exact dollar amounts, stating that calculating the sums would require reviewing a large volume of invoices and would not be an efficient use of court time.
Background of the royalties dispute Earlier this year the same judge found Hancock Prospecting owed hundreds of millions of dollars in royalties to Wright Prospecting and DFD Rhodes for iron ore produced at the Hope Downs mines in the Pilbara region.
Wright Prospecting prevailed on its royalties claim dating back nearly two decades but did not succeed on its request for equity ownership in the mines. DFD Rhodes received a partial award and was ordered in May to receive 50 per cent of its costs from Hancock Prospecting.
Hancock Prospecting's request to recover its own legal costs was denied.
Legal fee limits lifted The judge also waived the usual cap on legal fees because of the complexity and importance of the case. Rhodes and Wright Prospecting may recover fees up to 50 per cent above the standard limits in specified circumstances. The 51-day trial involved lawyers whose involvement dates back to at least 2010.
