Previously, we published a detailed report on the 3o Wealthiest People in Australia. In this article, will discuss the wealthiest person in Australia.
An Analysis of the Australian Economy
Australia, one of the leading mining countries in the world, is currently facing economic headwinds due to rampant inflation. According to a detailed report by KPMG, the Australian economy is currently reporting sluggish growth. GDP in the last quarter of 2023 slowed down to 0.2% from 0.3% in the preceding quarter. GDP growth rate is expected to reach 1.7% by December 2024 and 2.3% by December 2023. On the flip side, inflation is expected to reach 3.5% by the end of 2024 and decline to 2.7% by the end of 2025.
On June 27, the Deutsche Bank reported a higher-than-expected inflation rate of 4%, up from 3.6% in April. The industries most affected include housing, food and beverages, transport, and alcohol and tobacco each reporting price increases by 5.2%, 3.3%, 4.9%, and 6.7% respectively. Experts suggest that the Australian Reserve Bank must not go through with rate cuts anytime soon and instead raise rates until inflation subsides. HSBC is currently predicting a 30% chance of an interest rate rise by the end of this year by 25 basis points to 4.6%. You can also take a look at the wealthiest people in Czech Republic.
Is Mining the Largest Industry in Australia?
Mining is one of the largest industries by exports in Australia and contributed $2.4 trillion in export revenue over the past decade. The industry has generated 21% of economic growth in the country and has paid $252 billion in mining wages over the past decade. As of now, Australia has more than 100 prospective mining and processing projects worth $50 billion of investment that will provide almost 30,000 construction jobs and 20,000 operating jobs. The world is set to achieve zero net emissions by 2050, providing Australia with a generous opportunity, and given the time it takes to mine crucial minerals, the country must direct adequate investment right now.
On April 26, the Mineral Council of Australia published a detailed report on the feasibility of mining projects in Australia. According to the report, the country is currently missing out on $68 billion of potential investment as most mining projects are pulled out before execution amid environmental challenges. The report states that the risk attached to mining developments in Australia has significantly increased. Only 5% of projects get a favorable decision or go ahead, of those 20% of projects are executed, and 80% of them are abandoned altogether. One can deduce that while there are enough projects, there is not enough investment to complete them.
The Largest Mining Company in Australia
BHP Group Limited (NYSE:BHP) is one of the largest mining and iron ore companies in Australia, operating in more than 90 countries. The company mines copper, silver, zinc, uranium, gold, iron ore, nickel, and energy coal. The company mines copper for renewable energy, nickel for electric vehicles, metallurgical coal for steel, and potash for sustainable farming. You can also read our piece on the biggest iron ore mining companies in Australia.
In its operational review for the nine months ended March 31, 2024, BHP Group Limited (NYSE:BHP) reported that it is on track to meet copper, iron ore, and energy coal production for the year. It added that copper volumes increased by approximately 10% and Western Australia Iron Ore delivered strong growth in low-cost iron ore, despite heavy rainfalls. Increased copper production was primarily due to mining in areas of high-grade ores. Copper production in South Australia increased by 49%, as extra volume came from Prominent Hill and Carrapateena. During the nine months, the company spent $311 million on mineral exploration and evaluation and executed two major projects. The first project, known as the Jensen Stage 1, entailed the design, engineering, and construction of an underground mine containing potash. The second project, Jensen stage 2, entailed the development of more mining districts, the completion of a shaft hoist infrastructure, and the expansion of facilities to support more production capacity.
BHP Group Limited (NYSE:BHP) is working hard to revolutionize the mining process. On July 4, the company launched a project worth $250 million to install infrastructure that will facilitate the movement of trucks inside mines. The project will significantly reduce the fuel consumption of the company’s extraction trucks allowing it to advance to its goal of reaching zero operational greenhouse gas emissions by 2050. The project will require an average of 112 people every day and a maximum of 160 people. As of now, BHP Group Limited (NYSE:BHP) has six autonomous trucks, and by 2025, it expects to have the largest fleet of autonomous equipment in South America.
Now that we have studied the Australian economy, let’s take a look at the wealthiest person in Australia. You can also read our piece on the biggest precious metals and minerals companies in Australia in 2024.
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Our Methodology
To compile our list of the 30 wealthiest people in Australia, we utilized the real time billionaires data from Forbes and ranked the wealthiest people in Australia in ascending order of their net worths, as of July 6.
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The Wealthiest Person in Australia
Gina Rinehart
Net Worth as of July 6, 2024: $31.3 Billion
Gina Rinehart is the wealthiest person in Australia with a net worth of $31.3 billion. She became the executive chairwoman of Hancock Prospecting in 1992. The company was in utter financial distress when Rinehart took over. She orchestrated a project, the Roy Hill mining project, that started shipments to Asia in 2015. She also invested in the earth minerals and gas sector and is one of the largest cattle producers in Australia. At the end of 2023, her company and Chilean mineral company SQM agreed to make a joint acquisition agreement of Azure Minerals. She is the 54th richest person in the world.
Interested to see other wealthy individuals in Australia? Head over to our free detailed report on the 30 Wealthiest People in Australia.
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