Gina Rinehart’s mining company Hancock Prospecting has announced it is withdrawing its netball support less than a month after it was announced as a high performance program partner of the Australian Diamonds.

The company issued a statement on Saturday “regrettably” announcing the decision, after Diamonds players recently raised concerns about the sponsorship.

The withdrawal from the reported $15 million deal – touted by Netball Australia in late September as “a major investment for our sport” – is a financial blow to the organisation which posted a $4.4 million loss in the 2021 financial year.

“Hancock and Roy Hill do not wish to add to Netball’s disunity problems, and accordingly Hancock has advised Netball Australia… that it has withdrawn from its proposed funding partnership effective immediately,” the Hancock Prospecting statement said.

“Roy Hill, majority-owned by Hancock, will also be discontinuing its sponsorship arrangement with Netball WA… to be the principal partner of the West Coast Fever.”

Diamonds players including Indigenous netballer Donnell Wallam had raised concerns about the partnership, relating to comments made by Ms Rinehart’s father and Hancock Prospecting founder Lang Hancock, who in 1984 suggested killing off troublesome Indigenous Australians.

Wallam was reportedly set to pursue an exemption from wearing the sponsorship on her dress when she made her debut against England, with her teammates standing alongside her in the stance against the mining company.

Hancock Prospecting said “contrary to recent media (it) has not insisted that its name be worn by the Australian Diamonds in the current Constellation Cup series when overseas”.

“And was advised that the netballers had no concerns in wearing the name on the team dress for the series,” the statement said.

“Further, Hancock does not support gambling or smoking.”

The statement said the proposed partnerships with Netball Australia and Netball WA “were based on the unwavering enthusiasm that Hancock and its Executive Chairman for over 30 years have demonstrated for the athletes who proudly represent our nation”.

“Hancock and Roy Hill were not made aware prior to the proposed partnerships, of the complexity of existing issues between Netball Australia and the Players Association,” it continued.

“This includes the Players Association’s endeavours to gain a very substantial increase in wages during a time the sport is reeling financially, and unable to provide such an increase.

“Hancock’s proposed sponsorship would have enabled a generous increase in wages for the players which would not have otherwise been possible given Netball’s financial situation.”

Hancock has offered to provide four months’ worth of sponsorship to help Netball Australia and Netball WA find alternative partners, if they wish to accept.

The axed partnership was to last until the end of 2025.

“Hancock appreciates Netball Australia’s warm welcome and support, and because of this Hancock and Roy Hill have advised Netball Australia and Netball WA respectively, that it will instead provide a four-month sponsorship should they and their players accept it,” the statement said.

“To continue funding the athletes and to help Netball as it arranges alternative funding and sponsorships.”

Netball Australia described the announcement of Hancock Prospecting’s withdrawal of support as “a disappointing outcome for the sport” but said the organisation understood the decision.

“We are grateful that Hancock Prospecting continued to stand by our sport throughout the recent turbulence and we regret the impact this has had on the company,” Netball Australia chair Wendy Archer said.