Gina Rinehart's oldest son John Hancock has decided to step down as a nominee to become trustee of the multi-billion dollar family trust, a court has heard.
Mr Hancock says he's doing it "for the sake of family harmony" and has nominated his sister Bianca Rinehart instead.
John Hancock and Bianca Rinehart's lawyer, Christopher Withers, said Bianca had accepted her nomination and was qualified for the position.
"She was a director of Hancock Prospecting from 1998 to 2011," he said.
Mr Withers told the court Mr Hancock had decided stand behind his sister "for the sake of family harmony".
Mr Withers proposed that Bianca become trustee along with an advisory trustee.
But there were objections from another sister, Ginia Rinehart, who said Bianca would not be appropriate as the trustee.
Her lawyer Richard McHugh said his client wanted a completely independent trustee and was "blindsided" by Bianca Rinehart's nomination, who he said had previously withdrawn as trustee.
Ginia Rinehart has always backed her mother in the bitter family feud.
Last week, a last-minute appeal to have the matter dealt with in private arbitration was dismissed.
The appeal came a day after Gina Rinehart, one of the world's richest people, announced she wanted to be discharged as trustee.
The court also heard that billionaire mining magnate Andrew Forrest was also prepared to come to court this Friday to give evidence before this proposal was put forward.
John Hancock and Bianca Rinehart claim their mother acted "deceitfully" and with "gross dishonesty" in her dealings with the family trust, which was established by her father in 1988, with her children as beneficiaries.
The NSW Supreme court on Wednesday is seeking to solve the trustee matter before the civil trial between Gina Rinehart and her two children begins.
The ongoing and bitter public feud has involved large legal teams and seen the release of private emails, in which Gina Rinehart has accused her children of being lazy.
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