Originally published by Ethan Benedicto of The Australian Mining
Hancock Prospecting has reported a $2.8 billion net profit after tax for the 2025–26 financial year (FY26), supported by 71.5 million tonnes (Mt) of iron ore production from its newly consolidated Hancock Iron Ore (HIO) business in Western Australia.
In its first full financial year since bringing Roy Hill and Atlas Iron under the HIO banner, the business generated a net profit of $1.8 billion and supported $2.6 billion in dividends.
HIO also paid $1.5 billion in taxes and royalties while spending $3.1 billion with Western Australian suppliers, reinforcing the operations’ contribution to the State’s resources economy.
The results come as Hancock progresses several major Pilbara developments, including McPhee Creek, Hope Downs 2 and the proposed Mulga Downs iron ore project.
Hancock executive chairman Gina Rinehart highlighted the company’s wider economic contribution.
“Hancock paid $24.5 billion in taxes over the past decade… [which] helps build hospitals, helps support nurses and police, helps to fund our defence forces, emergency services and care for our elderly,” Rinehart said.
At Roy Hill, the operation celebrated ten years since its first iron ore shipment from Port Hedland, having exported more than 500Mt since 2015.
HIO’s latest mine plan has also extended Roy Hill’s expected operating life by more than a decade.
Meanwhile, McPhee Creek reached first ore earlier this year, with the mine officially opening in October and delivering its first shipments.
Ore from McPhee Creek will be processed at Roy Hill, providing additional feed to support the broader Pilbara production system.
At Hope Downs, the joint venture with Rio Tinto produced 36.5Mt of iron ore on a 100 per cent basis and contributed approximately $500 million to Hancock’s net profit after tax.
Construction of the $2.3 billion Hope Downs 2 development is progressing ahead of schedule, with first ore production commencing in February.
Following ramp-up, the project’s two new pits are expected to provide 31Mt of annual capacity, sustaining future production across the joint venture and supporting more than 1300 full-time roles.
Elsewhere, Hancock is targeting a final investment decision on Mulga Downs by the end of 2026, subject to receiving approvals. The project is designed to supply approximately 10Mt annually into the HIO system over a proposed 17-year mine life.
Hancock chief executive officer Garry Korte said Australia’s resources remained attractive, but investment conditions were becoming more challenging.
“Our resource endowment is as rich as ever, and the world still wants what we produce,” Korte said.
Despite the operational progress, Hancock’s overall net profit declined from $3.1 billion in FY25, while its asset base grew to $50.3 billion.
The company paid approximately $2.3 billion in Commonwealth and State taxes during FY26, alongside its continued investment in Australian mining, energy and associated industries.
