Wright Prospecting Sues Hancock Prospecting

The former business partner of Gina Rinehart’s father is suing her for making decisions without involving the latter. Wright Prospecting claims that Rinehart’s Hancock Prospecting make commercial decisions over iron ore deposits without consulting the former.

Founder Peter Wright said the company is trying to protect its interests on Hope Downs property. Wright was a former business father of Lang Hancock, Rinehart’s father. Both Wright Prospecting and Hancock Prospecting discovered iron ore deposits in the Pilbara region.

Wright is suing Hancock for breach of trust. He alleges that Hancock sold the Hope Downs property without Wright’s consent. He also said Hancock breached its fiduciary obligations

Wright said it is going after half of Hancock’s stake in Hope Downs’ 4-6 tenements.  The two holdings companies own Hope Downs, including Rio Tinto. The project will have about 15 million metric tons of annual capacity when it starts operating in 2013. The entire project would cost $1.6 billion to operate.

Wright is also going after an accounting of profits that Hancock earned from Hope Downs 4, 5, and 6. The suit includes compensation for Hancock’s breaches.

Rio owns about 50 percent of Hope Downs 4.

This is not the first time that the two families have been at war. They are locked in an 11-year dispute over a property in Rhodes Ridge. The court awarded Rinehart’s quarter stake to Wright. The case is still pending, following Rinehart’s appeal.