Bright prospects for Hancock

Western Australian miner Hancock Prospecting has invested more than and made more acquisitions than any other private company in the state over the last three years.

Although iron ore mining remains the bedrock of the business, owner Gina Rinehart has spent an estimated $500 million buying up agriculture operations across the country. 90 per cent of Hancock’s cattle stations have been acquired in the last three years.

Hancock is also planning to invest $394 million in UK-listed Sirius Minerals, which is opening a fertiliser mine in northern England.

This spending spree has been made possible by revenues from the group’s iron ore operations.

Production from the Hope Downs mines, which it joint owns with Rio Tinto, reached a new high of 47 million tonnes in 2016. Production from Hancock’s Roy Hill project is expected to reach 55mt when ramped up to full capacity.

Business News Western Australia estimates that WA’s second largest private company could easily see revenue from iron ore mining surpass $5 billion this financial year.

These revenues may continue to tempt Hancock into further acquisitions in the agricultural or mining sectors.