Court rejects Rinehart’s appeal

Court rejects Rinehart's appeal

The mining magnate's bid for a stake in a multibillion deposit has been dismissed.

Owen Raszkiewicz

Owen Raszkiewicz is a Motley Fool Contributor. Owen has been a Contributor since 2013, having also spent time as a Fool writer/analyst. He also worked as an Investment Analyst at Zenith Investment Partners, Australia's top research house specialising in managed funds. Owen has appeared on Channel 10's The Project and was invited on the BBC. He holds a Masters of Applied Finance, Masters of Financial Planning, Bachelor of Technology, Advanced Diploma of Financial Services and Diploma of Mortgage Broking Management. In addition, Owen has passed Level 1 of the Chartered Financial Analyst (CFA) Program. He has taken the Banking + Finance Oath (BFO). When he is not writing, Owen is Managing Director of Rask Finance, an Australian financial education company. You can email him: [email protected].

Published September 13, 2013 10:47 am AEST

Yesterday the High Court ruled that Gina Rinehart's bid for a 25% stake in one of Australia's biggest iron ore deposits, Rhodes Ridge, was done and dusted. Mrs Rinehart's legal battle with Wright Prospecting has spanned 12 years but, according to The Australian, Chief Justice Robert French "could see no valid reasons to hear an appeal" for a judgement that rejected her claim last year.

Rinehart's Hancock Prospecting and her father's business partner Peter Wright of Wright Prospecting were rumoured to have made an agreement in the 1980's to divide the assets upon their death. However yesterday's decision means the mineral deposits can now go ahead with the 50:50 JV between Wright Prospecting and Rio Tinto (ASX: RIO).

According Rio the deposit has 4.5 billion tonnes of high grade iron ore and has better railway access than Rio's Greenfields developments. This could prove to be a vital asset in Rio's effort to produce more than 360 million tonnes of the steelmaking ingredient per year.

Rio Tinto has been waiting for the dispute between the two families to be resolved before proceeding with development plans.

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Motley Fool contributor Owen Raszkiewicz does not have a financial interest in any of the mentioned companies.

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