Australian billionaire Gina Rinehart has grow to be a formidable pressure within the international mining trade.
After taking the helm of her father’s iron ore mining agency Hancock Prospecting in 1993, Rinehart embarked upon a diversification technique that has vastly expanded her useful resource empire. Right this moment, Australia’s richest individual has investments in lots of the world’s most strategic commodities corresponding to lithium, uncommon earths, copper, potash and pure gasoline.
A type of investments is Arafura Uncommon Earths (ASX:ARU,OTC Pink:ARAFF), which even in a low worth setting for uncommon earths has managed to safe practically AU$1.5 billion in debt financing and is, as of September 2024, confidently embarking on a AU$1.2 billion fairness financing to advance its Nolans undertaking within the Northern Territory. With a ten % fairness stake, Rinehart’s Hancock Prospecting is Arafura’s largest shareholder.
Along with Arafura, entrepreneur Rinehart’s funding portfolio additionally accommodates different ex-China, green-transition-focused corporations corresponding to Australian lithium agency Liontown Assets (ASX:LTR,OTC Pink:LINRF), in addition to uncommon earths producers MP Supplies (NYSE:MP) and Lynas Uncommon Earths (ASX:LYC,OTC Pink:LYSCF). Rinehart’s function within the acquisition of Azure Minerals’ Andover lithium undertaking in Western Australia alongside lithium large SQM (NYSE:SQM) additionally made headlines in Might of this yr.
Who’s Gina Rinehart?
Mining magnate Gina Rinehart is the richest individual in Australia and one of many world’s richest girls. She is the daughter of Australian mining mogul and Hancock Prospecting founder, the late Lang Hancock. As the present government chair of Hancock Prospecting, Rinehart gained the inaugural Lifetime Achievement Award from CEO Journal in 2019.
Rinehart was appointed as an Officer of the Order of Australia in 2022 for her “distinguished service to the mining sector, to the group by means of philanthropic initiatives, and to sport as a patron.”
How did Gina Rinehart get wealthy?
Gina Rinehart inherited Hancock Prospecting after her father’s passing in 1992. The next yr, Gina Rinehart’s firm acquired the Roy Hill tenements. Centering the huge undertaking because the cornerstone of the corporate, Hancock Prospecting has significantly benefited from the iron ore market increase that started within the early 2000s.
Right this moment, Roy Hill is Australia’s largest iron ore mine, producing 60 million tonnes of iron ore per yr. The mine was not too long ago authorised to extend its annual manufacturing to 70 million tonnes. Success at Roy Hill has made Hancock Prospecting Australia’s most respected personal firm, price an estimated AU$15.6 billion.
As with lots of the world’s most profitable billionaires, Gina Rinehart has developed an funding technique based mostly on strategic partnerships in addition to diversification to mitigate threat and construct worth. Beneath her management, Hancock Prospecting Pty Restricted (HPPL) in addition to the HPPL Group of corporations has expanded into a few of the world’s most economically necessary markets, corresponding to actual property, agriculture, power and important metals.
What mining corporations does Gina Rinehart personal?
Via her firm Hancock Prospecting, Gina Rinehart owns curiosity in mining corporations throughout many sectors, together with iron ore, lithium, uncommon earths, copper, oil and gasoline, in addition to potash. Whereas a lot of her funding portfolio is concentrated on Australia and ASX corporations, Rinehart is actively strengthening the geographical diversification of her investments.
In recent times, Rinehart has made a collection of key investments in mining corporations, particularly focusing on important metals initiatives in Germany, Brazil, Ecuador and america. These embrace exploration-stage corporations corresponding to Titan Minerals (ASX:TTM) and Azure Minerals in addition to producers corresponding to Atlas Iron and MP Supplies.
The place does Hancock Prospecting mine iron?
Automobiles hauling ore at Roy Hill iron ore mine.
Picture of Roy Hill iron ore mine through Roy Hill.
Hancock Prospecting’s Roy Hill and Hope Downs iron ore mines are positioned within the useful resource wealthy Pilbara area of Western Australia.
Roy Hill has attracted strategic partnerships with main international enterprises: Marubeni (TSE:8002) with a 15 % fairness stake; POSCO (NYSE:PKX,KRX:005490) holds a 12.5 % stake; and China Metal Company (TPE:2002) has a 2.5 % fairness place. The minority companions buy a mixed 28.75 million tonnes of iron ore yearly from Roy Hill’s manufacturing.
This September, Hancock Prospecting received the inexperienced gentle for its AU$600 million McPhee iron mine positioned about 100 kilometres north of the Roy Hill mine after an extended approval course of. The McPhee iron mine is anticipated to supply round 10 million tonnes of the steel annually over an estimated 15-year mine life. First manufacturing is anticipated to kick off subsequent yr, and ore will likely be transported by street trains to Roy Hill for processing and mixing. The purpose is to enhance the bigger mine’s product combine and maintain its manufacturing volumes.
The Hope Downs iron ore advanced is one other of Australia’s largest iron ore initiatives. A 50/50 three way partnership partnership with Rio Tinto (ASX:RIO,NYSE:RIO,LSE:RIO), Hope Downs hosts 4 open-pit mines and has an annual manufacturing capability of 47 million tonnes. Hope Downs has additionally been the topic of a greater than decade-long civil dispute in a Western Australian court docket over royalties, put forth by the descendants of Lang Hancock’s enterprise accomplice Peter Wright in addition to Rinehart’s personal youngsters. A judgment within the case is anticipated this yr.
Gina Rinehart’s iron ore investments
Gina Rinehart’s iron ore investments in Western Australia lengthen past Roy Hill and Hill Downs to its subsidiary Atlas Iron’s three producing mines and a pipeline of growth initiatives, in addition to an earn-in settlement on Legacy Iron Ore (ASX:LCY) and Hawthorn Assets’ (ASX:HAW) Mt Bevan undertaking by means of its subsidiary Hancock Magnetite Holdings.
Rinehart’s Hancock Prospecting acquired Atlas Iron in 2018 by means of a AU$427 million deal that turned out to be grime low cost as the corporate would go on to ship AU$1.5 billion in revenues over the following three years alone.
Right this moment, Atlas Mines operates the Mt Webber, Sanjiv Ridge and Miralga Creek mines. Manufacturing from these mines in its fiscal yr ended June 2023 led to a AU$222 million dividend cost for Rinehart’s Hancock Prospecting.
At Mt Bevan, as a part of its earn-in settlement, Hancock accomplished a prefeasibility examine( PFS) for a 12 million tonne per yr high-grade magnetite undertaking in July of this yr. The PFS integrated a mineral useful resource estimate totalling 1,291 million tonnes, which was accomplished by Atlas, and delineates a capital value of AU$5 billion to develop the potential Mt Bevan mine.
Completion of the PFS elevated Hancock’s stake within the JV possession from 30 % to 51 % with Legacy now holding 29.4 % and Hawthorn 19.6 %.
Like iron, coal is one other important materials in metal manufacturing. To this finish, Rinehart can also be pursuing an funding in a past-producing metallurgical coal mine in Alberta, Canada. Hancock Prospecting subsidiary Northback Holdings is the proprietor of the proposed Grassy Mountain steelmaking coal undertaking within the province’s Crowsnest Cross area. Northback is awaiting approval of its exploration licenses for the undertaking.
Gina Rinehart’s lithium investments
Gina Rinehart’s lithium investments embrace Azure Minerals’ Andover lithium undertaking, Liontown Assets, Delta Lithium (ASX:DLI) and Vulcan Power Assets (ASX:VUL). Nearly all of her lithium investments have got here in a flurry over the previous yr.
In June 2023, Rinehart’s Hancock Prospecting signed a separate three way partnership earn-in settlement for the Mt Bevan magnetite undertaking, which is mentioned above, this time for the lithium, nickel and copper mineralization on the undertaking. The settlement will equally see Hancock capable of earn a 51 % curiosity by finishing sure milestones.
Final September, Rinehart made headlines when she took a place in Liontown Assets after which quickly elevated the place to 19.9 % over the next month. This allowed Hancock, which was now Liontown’s largest shareholder, to successfully block Albemarle’s (NYSE:ALB) accepted takeover of the smaller lithium firm.
Nevertheless, since then, Liontown’s inventory has taken successful because the economics for its near-production Kathleen Valley lithium undertaking in Western Australia have been broken by the results of excessive inflation and low lithium costs. In the end, in January, Albemarle determined to dump its 4 % stake in Liontown Assets. The shortage of any additional strikes or remark by Rinehart in relation to Liontown Assets has led to hypothesis she could also be ready for the precise alternative to purchase up the lithium firm at a reduction.
Kathleen Valley entered manufacturing in late July 2024, and is anticipated to supply roughly 500,000 MT per yr of spodumene focus by the top of Q1 2025.
That wasn’t the one lithium bid Rinehart blocked final October. As is her technique, Rinehart scooped up an 18.9 % stake in Azure Minerals final yr after SQM introduced its intention for a complete takeover of the corporate and its Andover lithium undertaking within the West Pilbara area of Western Australia. This story had a unique ending, although, as Hancock Prospecting as a substitute joined the lithium large in a AU$1.7 billion deal to grow to be a co-owner of the exploration-stage Andover undertaking, which additionally hosts nickel, copper and cobalt mineralisation. The deal closed in Might.
Shortly after its Liontown and Azure strikes final yr, Hancock Prospecting continued investing in Western Australia’s lithium prospects when it participated in a AU$70.2 million fundraising for Delta Lithium in November. The proceeds of the fundraising will assist Delta Lithium to fund the event of its Mt Ida lithium-gold undertaking, which is adjoining to Hancock’s Mt Bevan three way partnership undertaking, by means of to a last funding resolution. As of August 2024, Hancock Prospect owns 10.7 % of Delta Lithium.
Rinehart has made lithium investments exterior of Australia as nicely. Wanting additional afield to Germany, with a 7.5 % stake, Hancock Prospecting is the second largest shareholder in Vulcan Power and its flagship Zero Carbon lithium undertaking in Germany’s Higher Rhine Valley, a milestone Rinehart’s firm reached after investing a further AU$20 million in Vulcan, which made headlines in June. The Zero Carbon undertaking is slated to supply an preliminary 24,000 tonnes of lithium hydroxide by the top of 2025, focusing on Europe’s electrical automobile manufacturing sector.
In August 2024, Vulcan Power reached one other main milestone with the begin of commissioning at its downstream lithium hydroxide optimisation plant, which can produce lithium hydroxide and first manufacturing of battery-grade lithium hydroxide monohydrate.
Gina Rinehart’s uncommon earths investments
Amenities at MP Supplies’ Mountain Cross uncommon earths mine.
clayton harrison / Shutterstock
Via Hancock Prospecting, Gina Rinehart has not too long ago made investments in a few of the world’s most well-known uncommon earths producing corporations — US-based MP Supplies and Australia’s Lynas Uncommon Earths — in addition to development-stage Arafura Uncommon Earths and exploration-stage Brazilian Uncommon Earths (ASX:BRE). Rinehart taking a place in these uncommon earths corporations exhibits she is seeking to capitalise on the numerous want for these important metals exterior of China.
As talked about within the introduction to this text, Rinehart’s Hancock Prospecting is the largest shareholder of Arafura Uncommon Earths, giving it a ten % stake within the advanced-stage Nolans undertaking within the Northern Territory. Rinehart made the funding in December 2022.
In April of this yr, Rinehart made two important strikes into the sector. The primary got here on April 9, when it was revealed that Hancock Prospecting had acquired a 5.3 % stake in MP Supplies, the second largest uncommon earths producer exterior of China. The corporate’s California-based Mountain Cross mine is the one built-in uncommon earth mining and processing operation in North America.
Rinehart’s funding in MP Supplies might later usher in “Roy Hill-type money move,” Dylan Kelly, head analyst at Terra Capital, instructed Australian Monetary Assessment. “Something that’s producing and never China-aligned is very strategic. These supplies are very, very arduous to make and there’s loads of demand in making magnets for electrical autos and wind generators.”
One week later, Rinehart’s Hancock Prospecting additionally took up a 5.82 % curiosity in Lynas Uncommon Earths, the biggest ex-China uncommon earths producer. The Australian uncommon earths miner produces the important metals at its Mount Weld mine in Western Australia and ships the uncooked materials to Malaysia for processing. Lynas can also be ramping up processing at its Kalgoorlie uncommon earth processing facility in Australia, and constructing gentle uncommon earths processing services and a heavy uncommon earths separation facility in Texas, US.
Rinehart’s close to simultaneous investments in each Lynas and MP Supplies comes after merger talks between the 2 uncommon earths behemoths stalled in February. There may be hypothesis stirring that Rinehart’s participation might renew merger discussions, Reuters reported.
Andy Forster, Lynas investor and senior investor of Argo Investments, had his curiosity piqued by Rinehart’s transfer “given she’s clearly made a play throughout the entire area. She clearly desires to probably have a seat on the desk if there’s any probability of consolidation.”
Rinehart can also be getting her foot within the uncommon earths door on the exploration degree. Final yr, Rinehart’s Hancock Prospecting made a pre-IPO funding for a 5.85 % share in Brazilian Uncommon Earths, which went on to listing on the ASX in December. The uncommon earths explorer is working its district-scale Rocha da Rocha uncommon earth province within the state of Bahia, Brazil. The province is very potential for each heavy and lightweight uncommon earths, with grades of over 40 % complete uncommon earth oxides discovered. The corporate expects to finish an up to date JORC mineral useful resource estimate this yr.
Gina Rinehart’s copper investments
Gina Rinehart’s copper investments are centered on Ecuador’s Andean copper-gold belt, and embrace explorer Titan Minerals and Ecuador’s state-owned Empresa Nacional Minera (ENAMI).
Ecuador has seen a rush of main mining corporations taking over positions in key copper and gold initiatives in recent times, putting Hancock Prospecting within the firm of Barrick Gold (TSX:ABX,NYSE:GOLD), Zijin Mining (HKEX:2899) and Anglo American (LSE:AAL,OTCQX:AAUKF).
Rinehart’s Ecuadorian copper investments are according to her shift towards the important metals obligatory for the inexperienced transition and her technique to broaden the worldwide footprint of her mining empire.
Hancock Prospecting subsidiary Hanrine Ecuadorian Exploration and Mining has been within the area since 2017, however not too long ago started making extra investments. In March 2024, Hancock Prospecting subsidiary Hanrine Ecuadorian Exploration and Mining acquired a 49 % stake in six mining concessions for AU$186.4 million. The deal sees it accomplice with state mining firm ENAMI for the concessions, which encompass the stalled Llurimagua copper-molybdenum undertaking in Northern Ecuador.
In late April, Ecuador’s constitutional court docket nixed appeals by ENAMI and its accomplice within the Llurimagua undertaking, Chile’s state-owned CODELCO, to overview the March 2023 resolution by Imbabura’s provincial supreme court docket suspending the environmental license for Llurimagua.
Shortly after the funding with ENAMI, Rinehart’s Hanrine made one other play in Ecuador by putting an earn-in settlement with Titan Minerals for as much as an 80 % possession stake within the explorer’s Linderos copper-gold undertaking contingent on as much as AU$120 million in exploration spending. Linderos is an early-exploration stage undertaking with the potential to host a large-scale copper porphyry system. Hanrine has made an preliminary funding of AU$2 million for a 5 % stake.
Gina Rinehart’s oil and gasoline investments
Gina Rinehart’s oil and gasoline investments embrace personal corporations Warrego Power in Western Australia and Senex Power in Queensland.
In February 2023, Hancock Prospecting gained a protracted bidding battle for the then-public Warrego with Warrego’s three way partnership accomplice Strike Power (ASX:STX) for a worth of AU$0.36 per share. Warrego and operator Strike Power preserve their 50/50 three way partnership on the West Erregulla onshore gasoline discipline inside exploration allow EP 469 close to Perth in WA.
In mid-August 2024, the West Erregulla undertaking acquired its manufacturing licence and the companions count on to begin operations as soon as a last funding resolution is made later this yr. Throughout section one, the undertaking is anticipated to supply 87 terajoules per day.
As for Senex Power, it’s a three way partnership between POSCO (50.1 %) and Hancock Prospecting subsidiary Hancock Power (49.9 %) that holds the Atlas and Roma North pure gasoline developments in Queensland’s Surat Basin. The 2 JV companions acquired Senex in 2022, with Rinehart’s firm placing up AU$440.89 million.
Senex Power is embarking on a AU$1 billion growth endeavor at Atlas and Roma North this yr that may see 60 petajoules of pure gasoline delivered to Australia’s east coast market yearly by the top of 2025. This determine represents greater than 10 % of the area’s demand. Regulatory approval for the growth was lastly authorised following an uphill battle with a Federal authorities extra eager on renewable power initiatives than the pure gasoline selection.
Rinehart as soon as had a big stake of practically 20 % in Lakes Oil, now Lakes Blue Power (ASX:LKO), by means of subsidiary Timeview Enterprises. Timeview’s stake in Lakes Blue Power has been lowered in recent times, but it surely stays the corporate’s fourth largest shareholder at 4.63 %.
Gina Rinehart’s potash and agriculture investments
Gina Rinehart’s potash and agricultural investments heart on Hancock Prospecting’s possession pursuits in a number of premium cattle stations in Australia, and the corporate’s royalty income generated from the Anglo-American-controlled Woodsmith potash undertaking at present below building in the UK.
With an unique funding of AU$380.6 million in 2016 to then-owner Sirius Minerals, Hancock Prospecting has a 5 % income royalty on the primary 13 million tonnes of fertiliser produced from Woodsmith and 1 % thereafter. Hancock additionally has a 20,000 tonne-a-year offtake choice. The timeline for Rinehart’s royalty income has been pushed again, nonetheless, as Anglo is reducing spending at Woodsmith following BHP’s (ASX:BHP,NYSE:BHP,LSE:BHP) failed mega-merger with Anglo American.
Investor takeaway
With Gina Rinehart on the helm of Hancock Prospecting, the Roy Hill iron ore mine has generated stellar revenues. That wealth creation not solely made her Australia’s richest individual, however has additionally constructed a robust battle chest from which Rinehart is increasing her mining empire.
Buyers can take cues from her latest and future strikes within the mining sector. Though she could also be defensive towards renewable power applied sciences encroaching on agricultural land, she understands the strategical significance of investing in important metals for the inexperienced transition corresponding to lithium, uncommon earths and copper.
FAQs for Gina Rinehart
How a lot is Gina Rinehart price?
Gina Rinehart’s web price is reported to be AU$40.61 billion as of Might 31, 2024. That is up 8.5 % over the earlier yr, in response to figures are from the Australian Monetary Assessment’s Wealthy Record 2024.
“Rinehart’s web price jumped $3.2b within the final yr because of multiples within the sector increasing,” the listing’s authors clarify. “Nevertheless, her iron grip on the Wealthy Record high spot could also be weakened by ore worth declines in 2024, on the again of considerations over metal output lowering in China.”
What firm does Gina Rinehart personal?
Gina Rinehart owns Hancock Prospecting, a personal firm based by her late father Lang Hancock. Initially an iron ore mining firm, in the present day the agency has strategic stakes in a wide-range of metals and commodities from lithium and uncommon earths to copper and agriculture, that are detailed on this article.
Can I purchase shares in Hancock Prospecting?
Whereas traders cannot purchase public shares in privately held Hancock Prospecting, they’ll take fairness positions within the publicly traded shares through which the corporate itself holds curiosity. A few of these shares embrace Arafura Uncommon Earths (ASX:ARU,OTC Pink:ARAFF), Liontown Assets (ASX:LTR), MP Supplies (NYSE:MP) and Lynas Uncommon Earths (ASX:LYC).
Does Gina Rinehart personal Rio Tinto?
Though she has curiosity in lots of mining corporations and the 2 corporations share the Hope Downs three way partnership, Gina Rinehart doesn’t personal mining large Rio Tinto. Yahoo Finance studies that Aluminum Company of China (SHA:601600) is its largest shareholder at 11 %, adopted by BlackRock (NYSE:BLK) with 8.7 % and the Vanguard Group at about 3.1 % of shares.
What does Gina Rinehart take into consideration nuclear power?
Gina Rinehart is pro-nuclear power. Throughout a speech at The Australian Bush Summit in 2023, she railed in opposition to the influence of wind and photo voltaic farms on a lot wanted agricultural land in Australia. She prompt that nuclear power gives a extra viable answer for reaching the nation’s web zero targets.
Is Gina Rinehart the richest individual in Australia?
Gina Rinehart is the richest individual in Australia. In 2024, she made the Australian Monetary Assessment’s Wealthy Record for the fifth consecutive yr in a row. The subsequent richest Australian, actual property developer Harry Triguboff, trails her by about AU$14 billion.
Is Gina Rinehart the richest girl on the earth?
Gina Rinehart isn’t the richest girl on the earth, however she does rank because the world’s ninth richest girl in 2024. The excellence of richest girl on the earth goes to France’s Francoise Bettencourt Meyer, the inheritor of L’Oréal (EPA:OR). Rinehart beforehand held the title in 2012.
Remember to observe us @INN_Australia for real-time information updates!
Securities Disclosure: I, Melissa Pistilli, maintain no direct funding curiosity in any firm talked about on this article.
Associated Articles Across the Internet
