Hancock Iron Ore has produced its first ore at its McPhee Creek mine in Western Australia, marking the transition from construction to production after 19 months of development.
The $840 million Pilbara project reached first ore on schedule, bringing Hancock Iron Ore’s newest operation into production after less than two years of construction.
The milestone marks the completion of a major project delivery phase and the beginning of day-to-day mining operations at the site.
McPhee Creek is the newest iron ore mine for Gina Rinehart’s Atlas Iron, with ore from the operation to be transported to Roy Hill for processing. Once at Roy Hill, the ore can be blended to improve product mix and help sustain production volumes, supporting the long-term performance of Hancock’s broader iron ore network.
That link to Roy Hill has been central to the project since ground was broken at McPhee Creek in November 2024. At the time, Roy Hill executive chairman Gina Rinehart, HanRoy chief executive officer Sanjiv Manchanda, and staff from Roy Hill, HanRoy and Atlas attended the sod-turning ceremony, marking the formal start of mine development.
Rinehart said the project had been delivered despite delays caused by government regulation and red tape, thanking the teams involved for their persistence.
“Our teams remained focused and determined as they tackled the countless government permits, hurdles and unnecessary tape to secure approval,” Rinehart said.
“Not only will McPhee help us remain a trusted and reliable supplier of iron ore in the global market, but its development will also ensure ongoing jobs and opportunities for our fantastic staff and the many local, small and large businesses our operations support, as well as the continuation of billions of dollars in revenue to governments through taxes and royalties.
“This revenue funds jobs and living standards, plus services and infrastructure that assist Australians.”
Bringing McPhee Creek into production required a major construction program, including one million cubic metres of earthworks, mine infrastructure, workshops and a 220-room accommodation camp.
The project also included 100km of upgraded sealed roads delivered in partnership with the Western Australian Government, improving access to the new operation and supporting surrounding infrastructure.
That road component has been a critical part of the project, as HanRoy’s partnership with the State Government included the upgrade of 92km of Marble Bar Road to a two-lane, sealed road, improving road safety and connectivity for emergency services and people living in Newman and Marble Bar.
Manchanda said taking McPhee Creek from concept to groundbreaking had required dedicated effort and determined work, with the project tied to Hancock Prospecting’s acquisition of Atlas Iron in 2018.
“The McPhee mine was part of the acquisition of Atlas in 2018 by Hancock Prospecting,” Manchanda said.
“Feasibility studies commenced in early 2019, and the Atlas Board approved the project in 2021.”
“Almost four years later, having experienced the introduction and subsequent withdrawal of the ACH bill, the introduction of draft Pilbara regional guidelines under proposed nature positive legislation, and once again its subsequent withdrawal, here we are finally marking the commencement of the development of this mine by HanRoy for and on behalf of Atlas and Roy Hill.”
With first ore now achieved, McPhee Creek moves from construction milestone to operational contributor, adding another producing mine to Hancock’s Pilbara portfolio.
The operation is expected to support jobs, local businesses and government revenues while strengthening the supply chain feeding into Roy Hill.
The milestone for Hancock reinforces the continuing importance of the Pilbara to its iron ore strategy.
While the company has continued to pursue international growth opportunities, including its joint venture with Ma’aden in Saudi Arabia, McPhee Creek shows its Australian production base remains central to the group’s long-term mining position.
