GINA Rinehart was revealed yesterday as the richest
woman in the world, almost tripling her wealth by pulling off two big
international deals in iron ore and coal.
The deals, which in the past year have lifted her wealth to $29.17 billion, according to the
BRW Rich 200 List, make her the eighth-richest person in the world.
They also take her a step closer to fulfilling a lifelong
family dream to have Hancock Prospecting, the family company, build and
operate an iron ore mine in the Pilbara. The $18.87 billion increase in
her wealth is equivalent to earning almost $600 a second, the average
annual wage every 2½ minutes, or $51.7 million a day. Another ambition
is to win two seats on the Fairfax Media board after becoming the
largest single shareholder earlier this year. That was dealt a blow
yesterday when the Fairfax board announced board changes that did not
include Mrs Rinehart. The news of her estimated wealth will not go
unnoticed by her three estranged children, John, Bianca and Hope, who
have taken legal action to remove her as trustee of the family trust.
Based on the
BRW valuation, the children's shares in Hancock
Prospecting are now worth more than $9 billion. But they cannot sell or
leverage against them, due to a clause in the company constitution that
says they can be sold only to lineal descendants of their grandfather,
Lang Hancock.
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The mining boom has turned the
BRW Rich List on
its head, as traditional operators such as Westfield's Frank Lowy, the
cardboard box making Pratt family, retailer Solomon Lew, James Packer
and GerryHarvey have had to rub shoulders with mining entrepreneurs such
as Andrew Forrest and Mrs Rinehart.
It has also had huge ramifications for the Australian economy, creating deep structural changes.
BRW
says if the resources boom continues, Mrs Rinehart's wealth could rise
to $100 billion, which would make her the richest person in the world,
unprecedented for any Australian.
Rich List editor Andrew Heathcote says: "The $18.87
billion increase in her wealth is unparalleled. It is a product of
foreign investment in new projects, increased production and a recovery
in the iron ore price over the past six months."
The
BRW valuation is far higher than the
valuation of Forbes, which in February estimated her wealth at $US18
billion. The difference between the two figures is due partly to a rise
in iron ore prices over the past few months. But mostly it shows that
valuations of private companies are subjective and based on numerous
assumptions, including debt. Mrs Rinehart's $29.17 billion fortune
leapfrogs her to the richest woman in the world, deposing Christy Walton
($26 billion), who as the widow of John Walton has a major stake in US
retail giant Wal-Mart.
Mrs Rinehart's wealth makes her the eighth-richest person
in the world, the three richest being Carlos Slim, Bill Gates and
Warren Buffett.
Adele Ferguson's unauthorised biography of Gina Rinehart will be released on June 26.