Great Keppel Island: Queensland Government confirms ‘lease negotiations are not proceeding’ between Tower Holdings and Rinehart’s Hancock Prospecting

Tower Holdings, Hancock Prospecting release statements after revelations that Australia’s richest woman has abandoned her plans for the island resort. Read what they had to say here.

Australia’s richest woman Gina Rinehart has abandoned plans to redevelop the Great Keppel Island resort.

Tower Holdings has started discussions with other prospective partners to deliver the revitalisation of the Great Keppel Island Resort after revelations that mining magnate Gina Rinehart has abandoned her plans for the project.

The Queensland Government confirmed on Tuesday that lease negotiations between Tower and GKI Investments, which is owned by Ms Rinehart’s mining company Hancock Prospecting, were not proceeding.

Those negotiations involved the purchase of the approved resort and transfer of leases from Tower Holdings to develop the resort.

A spokesman from Tower said that it, along with the Queensland Government, Livingstone Shire Council and the Australian Government, had worked cooperatively with Hancock during the due diligence process over the past six months.

“Tower Holdings looks forward to continuing to work with all levels of government through its discussions with new partners to revitalise Great Keppel Island to once again be the tourist industry icon,” the spokesman said.

A statement released by GKI Investments on Tuesday night failed to shed any light on the reason behind the decision to walk away.

“GKI Investments Pty Ltd has been reviewing a potential development project on Great Keppel Island in Queensland,” it read.

Picturesque Great Keppel Island.

“A significant amount of work has now been completed as part of an extensive review process for the project, which was enhanced by the positive engagement with Tower Holdings, relevant stakeholders and government departments at all levels.

“However, based on the outcome of that process, GKI Investments Pty Ltd has decided that unfortunately it cannot proceed with the project.

“We would like to express our thanks for the professional approach demonstrated by all parties in trying to progress this unique opportunity.

“We would also like to thank Tower Holdings for their cooperation throughout the process and wish them luck in progressing the future development of Great Keppel Island.”

A Department of State Development spokesperson said the Queensland Government would continue to look for investment partners to guarantee a bright future for GKI.

“The Queensland Government is committed to ensuring the most viable future for GKI which is why the State Development Department has commenced master planning to identify the community vision for the preferred future for the island. This will continue,” the spokesperson said.

“A whole-of-government working group was also established to assist with addressing some of the approval and development challenges faced by investment partners.”

It was revealed in October last year that Rinehart’s company Hancock Prospecting had entered into an agreement to potentially acquire the GKI development project from Tower Holdings.

That sparked hope that what was once considered to be Australia’s best-known tourist resort, which closed in 2008, could be revived to its former glory.

Capricorn Enterprise CEO Mary Carroll said her organisation would continue to work with all parties, determined to honour the agreed vision statement for GKI.

“Woppa (Great Keppel Island) is an inclusive, globally celebrated and loved, low-impact marine and tourism destination, delivering world-class interpretation and experiences that support the maintaining, protecting and nurturing of the island’s diverse ecosystems and cultural land and sea country of the Woppaburra,” she said.