05/04/2012 - 10:54

Rinehart fights ASIC to keep finances private

05/04/2012 - 10:54

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Gina Rinehart's private company made a net profit of $225 million in the 2009 financial year, and she is trying very hard to stop the public finding out how much profit she has made since then.

The Australian Securities and Investments Commission (ASIC) disclosed today that Mrs Rinehart's company, Hancock Prospecting Pty Ltd, and related entities, had applied in late 2011 for relief from having to lodge financial reports, including company accounts, as required under Chapter 2M of the Corporations Act.

"ASIC declined these relief applications on 2 March 2012," ASIC said in a brief statement.

Its decision is now subject to an application for review before the Administrative Appeals Tribunal.

Hancock Prospecting's most recent publicly available accounts, for the year to 30 June 2009, were lodged with ASIC on 24 December 2010.

They showed a big jump in revenue and profit, as the company started to gain the benefit of its half-owned Hope Downs iron iron mine in the Pilbara, which is operated by Rio Tinto.

The company's revenue jumped 249 per cent to $738 million and its net profit was up 39 per cent to $225 million.

Out of this profit, the compay paid dividends of $7.2 million, down from $13.2 million in the previous financial year.

Most of its revenue ($686 million) was from iron ore sales. The company also reported $26 million of royalties income; this is believed to be a fraction of the total royalties payable by Rio subsidiary Hamersley Iron, under a lucrative deal struck by her father, the late Lang Hancock, and his business partner, the late Peter Wright. 

ASIC said it did not intend to make further public comment on the issue pending the review of its decision.

 

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