Australian exploration company Hancock Prospecting is looking to start the development of the Aus$1,7-billion Hope Downs iron-ore project in Western Australia following the arbitration ruling in favour of the company, Hancock chairperson Gina Rinehart said in a statement.
On Tuesday, South African mining group Kumba Resources lost the arbitration process initiated to resolve the dispute between Kumba and Hancock Prospecting.
Kumba and Hancock Prospecting are involved in the 50:50 Hope Downs iron-ore joint venture in western Australia.
The dispute arose from Anglo American’s (Anglo) acquisition of a controlling 66,7% stake in Kumba in December 2003 and concern that Hancock Prospecting had unreasonably withheld or delayed its approval of the change in control.
The relationship between Hancock Prospecting and Kumba dates back to January 1998, when Iscor entered into the Hope Downs joint venture. In 2001, Iscor spun off its mining division, which was renamed Kumba Resources.
The arbitration confirmed the interpretation of the control change provisions in the agreement between the Hope Downs parties, which allow Hancock Prospecting to buy out Kumba’s rights in the Hope Downs joint venture following the change of control at Kumba after the takeover by Anglo in December 2003, Rinehart said in a statement.
“This will lead to Hope Downs moving ahead on the basis of a faster ramp-up and production of 30-million tonnes per annum,” Rinehart said.
Rinehart said she is keen to include joint-venture participants who could contribute to the project and who want to see the Hope Downs project develop in Australia’s interests.
“Hope Downs has in addition to market support, the support of several Asian and Australian steel and resource companies who would like to participate in the project and bring it to fruition as quickly as is possible,” Rinehart stated.
“Assuming there is no further legal response by Anglo or Kumba and assuming time lines for the ministerial determination of a few remaining land-access issues are achieved, Hope Downs will soon be able to commence construction, after necessary government approvals are obtained, and will then be able to contribute to iron-ore exports from western Australia, over many years from
2007 onwards,” Rinehart added. — I-Net Bridge