In December 1877, the leases and other dormant assets of the THIC were sold cheaply to a group of wealthy and influential investors, under controversial circumstances. It soon became clear that the new owners—collectively known at 'the Hematite Company'—were interested in gold, not iron. In 1878, part of the THIC's original lease was combined with the operations of the adjacent 'Tasmania' gold mine, bringing huge profits to the new owners.
