A glimpse into Gina’s empire

Gina Rinehart might be remaking herself as a mini media mogul, but new figures about her mining empire Hancock Prospecting shows what her fortune is really built on.

A report in The Australian today says that revenue at Hancock Prospecting jumped from $211.5 million in 2007-08 to $738.5 million in 2008-09, the latest figures released by the intensely private company.

Profit over that same period leapt from $162.2 million to an impressive $225.4 million as the royalties flowed in from Rinehart’s iron ore mining ventures in the Pilbara region.

Of course, these figures only hint at the sort of sums now flowing into Hancock Prospecting.

Since the end of the 2009 financial year, production volumes at Rinehart’s iron ore ventures (most of which are operated by Rio Tinto) have risen and the iron ore prices are also much higher.

Exactly how far Hancock Prospecting’s profit might jumped in the intervening period is hard to quantify – especially as Rinehart is now pouring money into the development of new coal and iron ore projects – but what is clear is that the company is rapidly cementing a place as a major player in Australia’s resources sector.

Indeed, the royalty streams captured in this financial snapshot are the basis of the Rinehart fortune and are the building blocks of her empire that is now likely to be much larger than the $4.75 billion estimated by BRW in May last year.

But it is the new projects – led by two $7.5 billion coal projects in Queensland and new iron ore developments – that will really propel her wealth into the stratosphere.

Rinehart is now busy trying to get these projects off the ground. Late last year she opened a $100 million test pit at the Alpha coal project in Queensland and recent reports suggest she is looking to sell stakes in the project to help finance it.

Getting these giant coal mines and accompanying infrastructure off the ground won’t be easy. But we can be certain Rinehart has the financial firepower to make it happen.