Gina Rinehart, chairman of Hancock Prospecting, is gearing up for a fight against ASIC over the release of its financial documents.
GINA Rinehart’s Hancock Prospecting has objected to providing financial statements to regulators because it would deliver sensitive information to rivals.
That report said the public disclosure of Hancock’s financial statements, combined with those from Rio Tinto, which is a partner in the Hope Downs iron ore mine, would allow the calculation of the average selling price, cash cost and profit margin of the iron ore operation.
Earlier this year, the Australian Securities and Investments Commission (ASIC) said it had rejected an application by Hancock Prospecting, which was seeking exemption from filing financial records for the private company and related entities.
Hancock is appealing ASIC’s order, and a preliminary hearing before the Administrative Appeals Tribunal is set for June 13.
Bloomberg reports that under the Corporations Act, companies that have revenues of more than $25 million or at least 50 employees are required to lodge financial statements to ASIC.
However Hancock Prospecting, which was founded by Mrs Rinehart’s late father Lang Hancock, is using the “grandfathering” section of the act to excuse itself from submitting the financial statements.
“HPPL has always been 100 per cent owned by private entities controlled directly by Mr Hancock and Mrs Rinehart,” Mr Watroba reportedly wrote, describing this as being ”in much the same way as other private family groups in Australia who do not lodge their financial statements with ASIC due to the grandfathering provisions.”