Mining magnate, Gina Rinehart will be broadening her investment in the agricultural sector by investing $500m in infant formula for the Chinese market.
Rinehart’s Hancock Prospecting confirmed that it has entered into a venture with a Chinese state-owned company to purchase hectares of farmland in Queensland, together with a processing facility, The West reports.
"Mrs Rinehart has been involved in the planning of this exciting venture, which will be a huge boost for Australia, Australian exports and for the Queensland dairy industry, which has been in much need of support," a Hancock Prospecting spokesman told The West.
"Hancock Prospecting and Gina Rinehart are huge believers in Australia and back strong export opportunities for the country.
"It's in line with the company's principles to invest and we're very happy to be supporting the Australian dairy industry."
In addition to the new investment, it is reported that Hancock Prospecting holds a 70 percent stake in the recently formed Hope Dairies in partnership with Sinomach, an enterprise run by the Chinese central government. It is believed that the new operation will be capable of producing up to 30,000 tonnes of formula per year, with production commencing in 2016.
Rineharts investment in the dairy industry follows her decision in July this year to purchase up to a 50 percent stake in the Liveringa and Nerrima cattle station in WA’s West Kimberly region.
The purchase was a joint venture between Hancock Prospecting, and Dowford Investments which is owned by Graham Laitt and his family- the owners of the Milne AgriGroup.