This new plan that Hill and Rinehart have is to share profits of Hancock Prospecting among all employees.
The benefit initiative, conceived by chair Gina Rinehart several years ago, is setup to reward the hard work, dedication and commitment of employees to make the Pilbara iron ore operation safe, productive and profitable.
Roy Hill employees who join the scheme are eligible for an annual payment based on overall business performance in the previous financial year.
The payments, which will start in December, depend on the company substantially achieving annual cost and production targets; employees achieving safety outcomes; and the company having adequate distributable cash levels under debt facility agreements to make the payment.
Rinehart said the commencement of the scheme would recognise the outstanding contributions of Roy Hill employees in achieving operational targets.
“My ongoing vision for sharing profits remains that if Roy Hill has a good year, then we all have a good year – with an annual payment to all employees in mid-December, just before Christmas,” Rinehart said.
“The first annual payment will occur in December this year to reward the outstanding effort, hard work and commitment put in by Roy Hill employees to achieve production and business performance targets that I was told would be ‘impossible’ to achieve.
“Our employees delivered the ‘impossible!’ Hence, I wanted to thank and extend the amount of the first payment to employees to reward this outstanding effort.”
Roy Hill’s first shipment of iron ore departed from Port Hedland in December 2015. It has since ramped up to become integrated mine, rail and port facilities producing 55Mtpa of iron ore.
Barry Fitzgerald, Roy Hill chief executive officer, believes the scheme creates a unique opportunity for staff to drive performance at the mine.
“It is our hope that this profitability can be improved, in the event that the West Australian 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 West Australia,” he said.
Fitzgerald said the scheme to share profits with employees when targets were met was the realisation of Rinehart’s vision.
“This is a tremendous example of the generosity of Mrs Rinehart and her appreciation of staff. She advised of this initiative years ago for when Roy Hill reached 55Mtpa, including when speaking publicly at a CHOGM function in Perth,” Fitzgerald said.
“It is tremendously exciting news for our people – who are being invited on a journey with this mega West Australian mining operation. The chairman’s profit scheme means that everybody’s joint efforts pay off, with our people genuinely engaged with driving the performance of our operations and business.”