Hancock Prospecting Cuts Jobs at Roy Hill Mine, June 18

Gina Rinehart’s Hancock Prospecting has confirmed job cuts at its Roy Hill iron ore mine in Western Australia’s Pilbara region. The company did not disclose exact numbers but said activity would reduce while maintaining production above 63 million tonnes of ore per year. The cuts follow last year’s merger of Roy Hill and Atlas Iron under the Hancock Iron Ore banner.

Why Hancock is cutting staff

The job cuts stem from workforce duplication after Roy Hill and Atlas Iron merged last year. Eric Lilford, deputy head of Curtin University’s WA School of Mines, said the reductions were inevitable. Highly mechanised mining operations do not need shared roles across merged entities, he explained. The company is scaling back positions identified as duplicated during the integration.

New mine to support existing operations

Hancock Prospecting lodged plans for a new small-scale mine called Round Hill, located 40 kilometres north-west of Newman. The proposed operation would produce 5 million tonnes of iron ore annually to feed the Roy Hill operation. Western Australia’s Environmental Protection Authority opened public comment on the project yesterday. The new mine aims to help maintain Roy Hill’s production target above 63 million tonnes per year.

Broader investment strategy

Hancock Prospecting is also investing beyond iron ore. The company invested AUD 20 million in St George Mining’s Brazil project. In April 2026, an Australian court awarded Hancock Prospecting and Rio Tinto ownership of the Hope Downs Pilbara iron ore operations, though both firms must pay hundreds of millions in royalties. Rinehart has also taken an 8.4% stake in US rare earths company MP Materials.

Market context for Australian mining

Australia’s mining sector faces mixed signals. Iron ore remains a core export, but global demand depends on economic growth. Job cuts across the mining industry reflect consolidation and efficiency gains post-merger. Hancock’s strategy of maintaining high production volumes while reducing costs through workforce optimisation aligns with industry trends toward automation and scale.

Final Thoughts

Hancock Prospecting’s job cuts reflect post-merger efficiency gains rather than demand collapse. With production targets maintained above 63 million tonnes and a new mine planned, the company is restructuring for long-term competitiveness in mechanised mining.

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