The merger, announced Tuesday night at the Roy Hill site in Western Australia, will consolidate the iron ore portfolio of Rinehart-owned Hancock Prospecting. Roy Hill is one of the company's most valuable assets, producing 64 million tons in the 2023-2024 fiscal year, posting a net profit of USD 3.2 billion and distributing a dividend of USD 4.05 billion.
The new structure will be headed by Gerhard Veldsman, the current head of both companies. With the merger, which aims to create a leaner and more efficient operational structure, Atlas Iron's workforce structure, which is mostly based on subcontractors, and Roy Hill's staff of approximately 2800 people will be combined into a single system.
While making the announcement, Rinehart also touched upon the investment climate in Australia, emphasizing the importance of policies towards the mining sector. "Recently, there has been a decrease in investment in our country. This is having a negative impact not only on our industry, but also on public revenues, living standards and the overall health of the economy," she noted.
"If mining is strong, Australians are strong. But a weakening in the sector affects everyone," Rinehart concluded.
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