Hancock Prospecting, owned by Australian mining tycoon Gina Rinehart, has received final approval from the Federal Government to develop a new iron ore mine in Western Australia’s Pilbara region.
The McPhee Creek project, about 100km north of Rinehart’s Roy Hill mine, was originally slated to begin ore production in 2023. A lengthy approval process that began in early 2021, which included environmental and regulatory challenges, caused this milestone to be delayed to the 2025-26 financial year (FY26).
The A$600 million ($410m) McPhee project is relatively small, representing just 1.5% of Australia’s current iron ore exports. It will utilize existing processing, rail, and port infrastructure, which would help it have a “very small footprint”, according to Hancock Prospecting chief executive officer, projects, Sanjiv Manchanda.
Rinehart thanked the team for their “years of efforts and persistence” in bringing the McPhee project to fruition.
She also took the opportunity to warn about “excessive government regulations stifling the industry”. In an interview with The Nightly, she said authorities are not protecting the local economy’s “golden geese”.
Citing data from the Minerals Council of Australia, Rinehart said that 80% of mining projects in the pipeline would never see the light of day.
“This is serious, and if the government keeps bringing in policies and red tape and keeps attacking the mining golden geese, then there are other countries with iron ore and other minerals and investment will continue to move offshore,” she said.
Australia, the world’s leading exporter of iron ore, relies heavily on revenue from the steel-making material, which is the primary source of income for Hancock Prospecting.
Weak iron ore prices and the need to secure a foothold on the growing battery metals market have prompted Rinehart in recent years to diversify into other sectors, including lithium, rare earths and copper.
Despite the downturn in iron ore futures this year, the majority of Australian mining projects maintain production costs below current market prices.
