Gina Rinehart’s Atlas Iron has reported a strong lift in both revenue and net profit but continues to be frustrated by slow approvals for its planned mine projects.
Gina Rinehart’s Atlas Iron has reported a strong lift in both revenue and net profit but continues to be frustrated by slow approvals for its planned mine projects.
The Hancock Prospecting subsidiary posted a 9.6 per cent lift in net profit after tax, to $439 million for the year to June 2024, according to accounts lodged with the Australian Securities and Investments Commission.
It benefited last year from both higher iron ore prices and higher volumes, with annual revenue up 28 per cent to $1.53 billion.
This reflected a 12 per cent increase in export volumes from its Mt Webber, Sanjiv Ridge and Miralga mines to 10 million tonnes after Pilbara Ports permitted higher tonnage.
The company also benefited from a 10 per cent lift in its average realised iron ore price to $US104.68 per dry metric tonne.
Atlas paid a final dividend of $179 million this month to its sole shareholder, Hancock Prospecting.
Hancock’s chief executive operations, Gerhard Veldsman, said it was an outstanding year for Atlas.
He added it was important that Australia did not overly burden the mining industry with “net zero related bureaucracy and expense”.
In that regard, the company said a final investment decision for its Ridley magnetite project had been deferred.
Atlas has completed a feasibility study for the project bet deferred FID “due to approvals uncertainty and uncertainty regarding groundwater”.
The company said a forward works plan had been implemented to focus on activities to de-risk the project.
Its results come one month after Atlas belatedly gained final environmental approvals for its McPhee Creek mine.
Hancock executive chairman Gina Rinehart lamented the slow approvals process.
“Unfortunately, due to the lengthening and duplicative approvals process, the McPhee project faced a lengthy delay, despite using the existing footprint of the existing preparation plant, and existing infrastructure, road, rail and port,” Mrs Rinehart said.
“But with final approvals in hand, we look forward to progressing this project and unlocking another economic opportunity for West Australians.”
Early works at McPhee Creek have commenced, and first ore delivery is expected late in the second quarter of FY26.
The results come shortly after it emerged that Hancock Prospecting has scaled back annual production at its proposed Mulga Downs iron ore mine after slashing the project’s footprint.
It also follows a Business News report that just one major resources project has been sanctioned in WA this year as the sector battles soft commodity prices, higher costs and slow approvals.
As well as Ridley and Mulga Downs, Hancock Prospecting is continuing to pursue development of a new shipping berth at Port Hedland in joint venture with Mineral Resources.
It was three years ago that the two groups signed an agreement to pursue this opportunity
Hancock is also pursuing the Mt Bevan magnetite development, jointly owned by ASX-listed explorers Legacy Iron Ore and Hawthorn Resources.
A pre-feasibility study completed this year put a $5 billion price tag on the project, which would produce 12mtpa of magnetite concentrate over 25 years.
The joint venture recently committed to spend $20 million on further project evaluation over the next two years, signalling this project is some time away.