Gina Rinehart is the richest person in Australia and would likely remain that way for a long time. One reason behind her wealth, aside from inheriting Hancock Prospecting established by her father, Lang Hancock, is her bucking business trends.
Like her dad who dared invest in mining in areas that were considered outback, Rinehart will begin to export in September 2015 from her $8.6 billion iron ore mine despite prices of the commodity hitting a five-year low and bleak forecast for the next few months due to global oversupply and weak Chinese demand.
Rinehart told media that over 2 million metric tons of iron ore are stockpiled at Roy Hill where project construction is 67 percent complete. She said that since Roy Hill is a fast-schedule, major and really complicated projects, its being ahead of schedule is fantastic.
While Rinehart, who is also venturing into infant milk formula with her eyes on the lucrative Chinese market, was discussing her plans, BHP Billiton (ASX: BHP) Chief Executive Officer Andrew Mackenzie sought an end to the period of “massive expansion of iron ore.” BHP and two other giant miners, Rio Tinto (ASX: RIO) and Vale of Brazil, invested a total of $120 billion the past few years to expand the capacities of their iron ore mines.
UBS analyst Daniel Morgan agreed with Mackenzie as he noted that it would not be ideal to add supply in 2015 to the current high inventory of iron ore as the global market would likely be well stocked for the next few years.
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