Gina Rinehart reveals plans to merge Roy Hill and Atlas Iron to create iron ore powerhouse

Gina Rinehart has revealed plans to create a single iron ore powerhouse by merging Roy Hill with Atlas Iron in a major shake-up of the billionaire’s business empire.

The move to form the mega company, to be called Hancock Iron Ore, was announced by Mrs Rinehart on Tuesday night at the Roy Hill mine in the Pilbara.

Roy Hill main source of wealth for Mrs Rinehart and her majority-owned Hancock Prospecting.

The Pilbara mine reported a $3.2 billion profit in the 2024 financial year and delivered a $4.05b dividend, after churning out 64 million tonnes of the steelmaking input.

Amalgamating the two iron ore businesses will make for a leaner operation, according to Hancock.

Roy Hill employs around 2800 workers, while Atlas Iron’s workforce relies largely on contractors.

Both companies have been run by Gerhard Veldsman, who will be the chief executive of Hancock Iron Ore.

Mrs Rinehart also used the announcement in the Pilbara to stress the importance of policies that support mining investment.

“Regrettably, more recently investment into Australia is declining. This will badly affect tax revenue, record national debt, opportunities and living standards,” she said.

“As I often say, when mining does well, so do Australians, but I need to add, when mining doesn’t do well, nor do Australians.

“We hence need to be very encouraging of policies that are more welcoming to investment. Other countries are certainly doing this.”

Combined, Roy Hill and Atlas have delivered more than $11.5 billion in royalties and taxes to governments, according to media statement from Hancock..

The name change formally takes effect from July 1 and will not affect any contractual obligations.

“The world of iron ore is evolving and so are we. Atlas Iron and Roy Hill are joining forces to become Hancock Iron Ore – bringing together our experience and combined strengths, and continuing to support many small, medium and larger business, in West Australia and across Australia,” Mr Veldsman added.

Roy Hill is one of Australia’s largest iron ore miners and ships around 64 million tonnes of iron ore each year to steel making markets in nearby Asia.

Atlas Iron was acquired by Hancock Prospecting in 2018 when it was in financial strife and now exports around 10 million tonnes of iron ore each year.