Mining magnate Gina Rinehart's Hancock Prospecting has abandoned its plans to redevelop Woppa-Great Keppel Island, a traditional owner has confirmed.
The company first announced it would acquire the lease for the once-iconic resort off the central Queensland coast in October.
The southern Great Barrier Reef island resort closed in 2008 and has since had several development applications from different companies fall through.
Traditional owner and director of Woppaburra Saltwater Aboriginal Corporation, Bob Muir, said he received a letter from the company stating its intention to abandon the development.
"It just let us know that Hancock Prospecting, GKI Investments PTY LTD, had a good look around at the potential development and based on the outcome, have decided that unfortunately it cannot proceed with the project," he said.
"We don't know why, what the reasons are, but obviously there's genuine reasons there for it to happen."
Hancock Prospecting released a public statement confirming GKI Investments Pty Ltd will not proceed with the project.
"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," the statement said.
"However, based on the outcome of that process, GKI Investments Pty Ltd has decided that unfortunately, it cannot proceed with the project."
The company wished the leaseholders luck in progressing future developments and thanked Tower Holdings for its cooperation.
In a statement, the Department of State Development confirmed the lease negotiations with Hancock Prospecting's GKI Investments were not proceeding.
The government said it was committed to ensuring the most viable future for the island and would continue looking for investment partners.
It said the department had started master planning of Great Keppel Island to identify the community vision for the island.
"A whole-of-government working group was also established to assist with addressing some of the approval and development challenges faced by investment partners," the department said.
Silence on Woppa-Great Keppel Island redevelopment
Hancock Prospecting said last year the development would entail "world-class, year-round beach club, sandy bars and shopping".
"There has been a bit of silence for a little while," Uncle Bob said.
"When [the letter] did come it was a bit of a surprise."
The Woppaburra elder said the news was also a relief.
"It's a bit sad," he said.
"But the business of having to deal with a large company like that, even if it did go ahead, it's something where Woppaburra still have to try and negotiate and probably fight for anything and everything to try and get an input or say in what's happening on our country."
The once-iconic resort has since had several false starts from companies trying to bring it back to life since its closure.
A master plan, proposed by Tower Holdings, was approved in 2012 spruiking a major development featuring a casino, marina, accommodation, shops and a golf course.
The plan never eventuated after concerns from the state government over casino licences and lapsed deadlines.
Part of the old resort was then demolished in 2018, before more companies tried unsuccessfully to purchase the lease.
Redevelopment plans have opportunity for tourism, education
Uncle Bob said development on the island was "a two-edged sword".
The Woppaburra people were formally recognised as native title holders of the renowned holiday isle in December .
Each time a development application popped up, Uncle Bob said it was an opportunity to highlight Indigenous culture and tourism.
"It's just another example of how some of these things, when they're proposed, can be very misleading," he said.
"[It] really builds up community's hopes and does it in a way which divides communities as well."
He said each failed development application left the Woppaburra people, Central Queensland locals and businesses exhausted.
"It's something can be very disheartening and deflating when these things keep happening," he said.
"There's a lot of good people out there with a lot of goodwill and some of the processes used for us to be involved with this, it just seems to divide communities before it even starts.
"That's one of the reasons I'm happy that it hasn't gone ahead."
