Gina Rinehart’s Hancock Iron Ore seeks approval for Round Hill while cutting Roy Hill jobs

Round Hill filing

Western Australian watchdog documents published on June 17 show Hancock Iron Ore is seeking approval for a new satellite mine called Round Hill near Newman, as it cuts jobs and reduces mining activity at its flagship Roy Hill operation.

The proposal is part of Hancock’s effort to keep Roy Hill’s output steady as the main mine ages. The company says its latest life-of-mine plan extends Roy Hill’s life by 10 years.

Round Hill is about 40 kilometres from Newman in the Pilbara and is reported to be designed to produce about 5 million tonnes a year over a 10-year life.

Jobs and production

Hancock has confirmed it is reducing mining activity at Roy Hill while trying to maintain production above 63 million tonnes a year for the Roy Hill system.

Media reports say between 150 and 200 workers have been made redundant, although Hancock has not publicly disclosed an exact number.

The company has said it is working through the impact with affected workers.

The job cuts underline the pressure on one of Australia’s biggest iron ore operations as Hancock reshapes how the Roy Hill system is run.

How the mine system is changing

Roy Hill is Hancock’s flagship Pilbara iron ore operation, and the company has been leaning more heavily on satellite deposits and stockpiles to support output.

The $600 million McPhee mine has already been completed and is expected to supply about 10 million tonnes a year into Roy Hill infrastructure.

Round Hill would add another source of ore for the system if it wins approval, helping Hancock prolong production across the wider Roy Hill complex.

Regulatory and land issues

The watchdog documents indicate Round Hill is moving through the approval process, but regulatory clearance is still pending.

Hancock is also in talks with the Karlka Nyiyaparli Aboriginal Corporation over land clearance for the project, a practical hurdle before it can advance.

The company has not said when construction would start if approval is granted.

Timing and open questions

The sequence of events shows how quickly the story has developed. The Australian reported on June 16 that Roy Hill workers had already been laid off. NewsWire reported on June 17 that the cuts were being made after Hancock completed its annual life-of-mine planning.

Later on June 17, The Australian reported that watchdog documents showed the Round Hill proposal, making the connection between the job cuts and Hancock’s longer-term effort to sustain Roy Hill clearer.

One report said 150 to 200 jobs had been cut, while another said 150 to 500 could be affected. Hancock has not confirmed an exact number, leaving that as one of the main unresolved points.

What happens next

Investors, workers and native title holders will be watching for the regulator’s next step on Round Hill, any formal Hancock filing, and whether the company gives a timetable for construction or land-clearance milestones.

The other key question is whether Hancock updates guidance on Roy Hill output or the McPhee ramp-up as it works through the job cuts and tries to keep production above target.