30-year-old memo challenges Wrights’ claim to Rinehart cash

afr.com:

The family of mining pioneer Peter Wright has known for decades that it has no claim to the billions of dollars flowing from Hancock Prospecting’s Hope Downs iron ore mines, lawyers claim.

A 30-year-old memo sent from Hancock and Wright Prospecting executives to Mr Wright’s children was aired in the West Australian Supreme Court on Wednesday, outlining a breakdown of assets between the two mining dynasties.

Gina Rinehart and her company Hancock Prospecting, started by her father Lang (far right), is defending claims to its Hope Downs iron ore tenement in the Pilbara from Wright Prospecting, started by Peter Wright (left). Composite image

In what lawyer for Hancock Prospecting Noel Hutley described as “powerful evidence”, the memo outlined that land now comprising the company’s Hope Downs operation was listed as 100 per cent owned by Hancock Prospecting, and not shared with Wright.

The Wright family is claiming it is owed an equal share of royalties that have been produced by the Hope Downs mines, arguing much of the land it covers was jointly held by the Hancock and Wright partnership.

“This is a memo which has obviously gone to the controlling mind of [Wright Prospecting],” he said.

“One would expect if [Michael Wright] was of the view that these individuals who created this were attributing ownership to [Hancock Prospecting] of assets which he understood to his company had a 50 per cent interest, you’d expect that there would be some response expressing dissatisfaction.”

The memo was prepared by a group of Hancock and Wright Prospecting executives and marked as received on February 20, 1989, by Michael Wright, the son of Peter.

Mr Hutley said it was evidence that the Wrights had known since 1989 that Hancock had full