Bloomberg reported that Ms Gina Rinehart, Australia’s richest person, risks losing control over almost a quarter of her mining company, Hancock Prospecting Pty, as three of her children challenge her role in running a family trust.

Hope Rinehart Welker, Bianca Rinehart and John Hancock, three of Gina’s four children, sued their mother in Australian state court seeking to have her removed as trustee of the Hope Margaret Hancock Trust in New South Wales Supreme Court

Judge Paul Brereton dismissed Ms Rinehart’s request to throw out the lawsuit. He said “Her control won’t be affected if she is removed as trustee. A trust deed, guaranteeing Rinehart, who is chairwoman of Hancock, control over the company doesn’t mean the ability to control every single share.”

Ms Rinehart’s youngest daughter, Ms Ginia, said she was wrongly included as a plaintiff and withdrew the claim. She is now a defendant in the case. Ms Ginia supports her mother to remain as trustee, or would want someone from outside the family to run the trust.

The trust, created by Mr Lang Hancock for the benefit of his grandchildren, has an almost 25% stake in the company he founded. Closely held Hancock is a partner in the Hope Downs iron ore mine in Australia’s Pilbara region with Rio Tinto Group. Hancock Prospecting owns iron ore projects in the Pilbara region, exporting to China, the biggest consumer. Iron ore prices reached record highs in February this year as Chinese steel production expands, building railways and apartment blocks.

Ms Rinehart’s net worth is estimated at about $9 billion by Forbes magazine.

(Sourced from Bloomberg)