The iron ore boom has underpinned the enormous wealth of Fortescue Metals Group Ltd managing director Andrew Forrest, and it has also boosted the wealth of some of Western Australia’s most famous families.
Gina Rinehart has been ranked as Australia’s first female billionaire, worth $1.8 billion, according to BRW magazine, and her wealth is set to grow.
The main source of her wealth is a lucrative royalties deal negotiated by her late father Lang Hancock with mining giant Rio Tinto.
She receives iron ore royalties currently worth $70 million per year, according to estimates by WA Business News’ Briefcase columnist Tim Treadgold.
Her company, Hancock Prospecting, has partnered with Rio in the $1 billion development of the Hope Downs iron ore mine, and is preparing for the development of other Pilbara iron ore deposits, including Roy Hill.
Similar royalties are paid to Angela Bennett and Michael Wright, the estranged children of Mr Hancock’s business partner, the late Peter Wright.
Despite their enormous wealth, the children of Messrs Hancock and Wright are best known for their legal disputes.
Angela Bennett and Michael Wright have taken legal action against Hancock Prospecting, alleging they are the rightful owners of Hancock’s 25 per cent stake in the Rhodes Ridge iron ore deposit.
Stan Perron also receives a small share of the iron ore royalties negotiated by Hancock and Wright, after he provided a loan to Lang Hancock.
However most of Mr Perron’s $1.2 billion fortune comes from his Prestige Toyota business, which holds the last direct franchise from Toyota Corp, and property investments.
In terms of total wealth, Ms Rinehart is ranked alongside Kerry Stokes. He is the major shareholder in the Seven Network and has extensive private business interests through Australia Capital Equity, which owns Caterpillar machinery dealerships in Australia and China.
Other prominent Western Australians that feature in BRW’s Rich List include BGC founder Len Buckeridge and property investor Ralph Sarich.
