The Hook Norton Ironstone Partnership was the first company to quarry ironstone at Hook Norton on a large scale. Although only in operation for twelve years, its quarries subsequently became part of the Brymbo Steelworks quarries and relics of the Partnership's railways and tramways can still be seen today.
A major objective in the building of the Banbury and Cheltenham Direct Railway was to place the North Oxfordshire ironstone producing district in direct communication with the South Wales coalfield. After the line had been authorised, its route at Hook Norton was altered incurring extra costs of £25,000. This change may have been influenced by the presence of ironstone at Hook Norton.
Land on both sides of the railway at Hook Norton Station was purchased by the Oxfordshire Ironstone Company on an unknown date but "probably early in 1883". This land was conveyed to a partnership of Richard Looker (the company secretary of the B&CDR), John Wilson and Henry Lovatt on 19 April 1884. The Banbury Guardian for 1 September 1884 (quoted in The Banbury and Cheltenham Direct Railway) reported:
At Bloxham and Hook Norton there is a very rich bed of iron ore, which has been purchased by the Oxfordshire Ironstone Company, and a very large income is expected to be derived from this source over the Banbury & Cheltenham Direct Railway.)
The land was transferred again on 1 April 1889 to the Hook Norton Ironstone Partnership, Richard Looker being the first Partnership manager.
The partnership obtained leases to work ironstone on the south side of Adderbury Station in the late 1880s Operations began in 1890 and the Partnership purchased a one foot eight inch gauge 0-4-0 locomotive Florence. A tramway was built on which Florence could be used, this ran from a tipping dock in Adderbury Station goods yard. The line ran south, initially on a gradient of 1 in 17, passing under the bridleway to Paper Mill Cottages and finally reaching the working face next to the Oxford Road. Company offices and locomotive shed were located at the top of the incline. Problems were experienced with locomotive operation (Tonks suggests the gradient was too steep for Florence) and the incline was changed to cable-haulage powered by a stationary steam engine. The flatter route to the quarries was horse-worked. Florence was transferred to the Partnership's quarries at Hook Norton.