Article by James Bosco courtesy of Australian Mining.
Iron ore development in Western Australia is drawing attention thanks to big moves made by Hancock Prospecting and BHP.
Australia is the largest producer of iron ore in the world, and WA houses a vast majority of operations pertaining to the country’s production of the precious metal.
With $134 billion earned in export revenue in FY22, it makes sense that those benefitting the most from iron production would seek to invest back into the market.
Hancock Prospecting executive chair Gina Rinehart has shown that her recent investments in gas and critical minerals have not shifted her presence in the iron market. Rinehart has fully united both Roy Hill and Atlas Iron under one roof thanks to an initial deal struck in 2018.
The new conglomerate will see Roy Hill chief executive Gerhard Veldsman become CEO of group operations at Hancock. The new title will come with added responsibility for Roy Hill and Atlas Iron operations, as well as other projects.
While Hancock sees success in expanding their business, BHP is looking to secure long-term partnerships with rival industry players and the WA Government.
Last month, BHP, Rio Tinto, Woodside and Chevron, along with the WA Government, became founding partners the Resources Community Investment Initiative (RCII). BHP has committed to a $250 million investment to the RCII over the span of 10 years and will decide on which individual projects it will fund.
BHP Western Australia Iron Ore (WAIO) asset president Brandon Craig welcomed the mass partnership.
“BHP has a long and proud history in Western Australia, and we welcome the collaborative approach taken by the WA Government and the mining industry to strengthen our significant contribution to this great state,” Craig said.
“Over the past 10 years, we have contributed more than $4.3 billion in social, community and training programs in Perth, the Pilbara, Port Hedland and the Goldfields, on top of tens of billions of dollars in investment, jobs, royalties and taxes.
“We look forward to furthering our support for long-term social and economic outcomes in the regions where we operate, and for all West Australians.”
BHP’s WAIO operation contributed $44 million to various WA community projects in FY22 via its social investment program.
