Gina Rinehart Wins Legal Battle Against Rio Tinto

SYDNEY—Rio Tinto PLC must pay royalties to companies run by Australia's richest person Gina Rinehart and the heirs of her late father's former business partner from iron ore it digs up in two areas of the Pilbara region in Western Australia, according to a High Court ruling against the mining giant.

Rio Tinto, one of the world's biggest mining companies, argued it wasn't liable to pay royalties on property acquired 45 years ago from Ms. Rinehart's Hancock Prospecting Pty Ltd. and Wright Prospecting Pty Ltd.--operated by the family of Peter Wright, the former partner of Ms. Rinehart's late father Lang Hancock. Rio Tinto's case centered on it having briefly relinquished control of some of the land during the 1970s.

The mining area in question is home to Rio Tinto's Channar mine, operated in joint venture with Sinosteel Corp., and Eastern Range mine, which it runs with Shanghai Baosteel Group Corp.

On Wednesday, Australia's High Court ruled unanimously against Rio Tinto.

The Australian court found Rio Tinto "is liable to pay royalties to Wright Prospecting and Hancock Prospecting in respect of iron ore mined in two areas of the Pilbara region of Western Australia known as Eastern Range and Channar," according to a judgment summary published by the High Court.

A spokesman for Rio Tinto declined to comment. A spokesman for Hancock Prospecting wasn't immediately available. A spokesman for Wright Prospecting acknowledged the ruling, but wouldn't comment further.

Rio Tinto, the world's No. 2 exporter of iron ore, an ingredient used in steelmaking, has itself been grappling with a sharp downturn in prices for that commodity. In August, Rio Tinto reported a more-than 80% slump in first-half profit, as a global oversupply of iron ore dragged the material's price to a decade low.

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October 13, 2015 22:25 ET (02:25 GMT)

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