Roy Hill to share profits, targets 60mtpa

Roy Hill Holdings has introduced a staff profit scheme after achieving its 55mtpa production target and has confirmed its interest in expanding to 60mtpa.

The company said the chairman’s profit scheme would comprise an annual payment based on overall business performance in the previous financial year.

Executive chairman Gina Rinehart had previously stated that the scheme would be introduced once the company reached 55mtpa.

The program’s first payment is expected to occur in December.

“We’ve created a unique engagement and reward system,” chief executive Barry Fitzgerald said.

“It’s an outstanding employee benefit, and will become a cornerstone of the mindset and culture we are building here at Roy Hill.”

Mr Fitzgerald also highlighted the company’s desire to increase production to 60mtpa.

“The scheme creates a unique opportunity for our staff to drive performance at Roy Hill and participate in the profitability of this great Western Australian mining operation and company,” he said.

“It is our hope that this profitability can be improved, in the event that the WA government give approvals for the project to expand to 60mtpa, enabling the more productive use of our two berths in Port Hedland, plus more investment by Roy Hill, much of which will further benefit WA.”

The company submitted an application with the Department of Water and Environmental Regulation for the expansion in October last year.

In February, the Town of Port Hedland council voted against an expansion application, saying it would wait until the state government had responded to a dust management report.

Today's announcement comes with Roy HIll's parent company, Hancock Prospecting, eyeing a $390 million takeover of junior iron ore miner Atlas Iron, with one of the main attractions believed to be potential development options at Port Hedland.