Hancock fails to halt Fortescue

THE Warden’s Court has lifted the veil on tensions between rival iron ore miners Fortescue Metals Group and Gina Rinehart’s Hancock Prospecting amid a wider battle between mining and agriculture in the Pilbara.

In a recent Warden’s Court ruling, Hancock lost its bid to prevent Fortescue from being awarded key mining leases needed to extend its Cloudbreak iron ore mine, 100km north of Newman.

Fortescue last year applied for three contiguous mining leases near Cloudbreak on which it plans to build an ore conveyor needed to link outlying deposits to the mine’s processing facilities.

Fortescue plans to start construction of the conveyor next year followed by mining of the new deposits in 2012.

However, all three leases lie on the Mulga Downs cattle station operated by Ms Rinehart’s Hancock Prospecting, which runs a herd of more than 6000 beef cattle.

Hancock opposed the grant of the leases on the grounds it would reduce the cattle carrying capacity of its pastoral leases by reducing the volume of water available, in turn having a detrimental financial impact on its pastoral operations.

Hancock requested that Fortescue should be bound by prohibitive “pastoral conditions” that would protect the cattle operations.

Hancock argued the grant of the leases would deprive it of its best grazing land on the eastern part of the station and would require the replacement of at least three water wells.

However, the court ruled against Hancock and recommended all three leases be awarded to Fortescue with conditions similar to those typically applied to mining leases in the region.

The only extra conditions imposed on Fortescue were requirements to take reasonable steps to minimise the impacts of its operations on the station, consult with Hancock over the most appropriate access routes, and immediately inform Hancock of any damage caused by the miner’s activities.

Hancock failed in a similar case against the grant of five other leases at Mulga Downs station to Fortescue in 2007.