Mining's richest build wealth as share prices surge - The Australian Financial Review

Andrew 'Twiggy' Forrest's stake in Fortescue jumped in value by $1 billion last week. Stefan Gosatti

 The renewed confidence in mining stocks has boosted the paper wealth of the industry's top brass by more than $5.5 billion since January.

An improvement in most commodity prices from January lows has seen investors return to mining stocks, making the sector one of the market's best-performing so far this year.

The S&P/ASX 300 Metals & Mining Index has blitzed the S&P/ASX 200, with returns of 41.8 per cent year-to-date compared to 9.2 per cent. Iron ore has surged 86 per cent to $US79.70 this year.

That's has flowed into the pockets of some of the industry's wealthiest executives. Three of them have enjoyed a collective $5.5 billion increase.

Gina Rinehart's wealth is being buoyed by higher iron ore prices. Getty Images

$1b in a week

The gain has been led by Fortescue Metals Group founder and chairman Andrew Forrest, whose stake in the company has jumped in value by $4.6 billion, or 242 per cent, to $6.5 billion.

The stake's value climbed by $1 billion last week alone after the iron ore price jumped to a two-year high and Fortescue's shares saw an 18.7 per cent surge.

Mr Forrest paid $6.9 million earlier this month to add 1.3 million shares to his more than 1 billion shareholding, noting he was "delighted to be in a position to further cement his faith in Fortescue" and had long intended to own more than 33.3 per cent. He now holds 33.36 per cent of the company.

Asked last week if he was planning on increasing his stake further, Mr Forrest said he "would never say never".

Kerry Stokes's stake in his Seven Group Holdings has increased in value by about $740 million. Louie Douvis

Mining services 

The value of Kerry Stokes's stake in Seven Group Holdings, which owns the WesTrac mining equipment business, a stake in the Coates Hire business and a suite of investments in oil and gas, has climbed by about $740 million to $1.84 billion.

The steep rise in shares in mining services company Mineral Resources has also paid off for managing director Chris Ellison. Its share price has climbed from $4.01 at the start of the year to $12.49 on Friday, and the value of Mr Ellison's stake has tripled to $310.2 million, from just $99.6 million.

Hancock Prospecting chairman Gina Rinehart, whose fortune was estimated at $6.06 billion by the BRW Rich 200 List at the end of May, and Angela Bennett, valued at $1.6 billion, both receive royalties from Rio Tinto based on the revenue generated by the company's Hamersley Iron division.

The value of Mineral Resources managing director Chris Ellison's stake is up 211 per cent. Matt Jalonek

The unexpected strength in the iron ore price this year would have bolstered the royalty.

The gold price is also up about 15 per cent since January, bringing with it the worth of a string of gold company executives, including Northern Star Resources managing director Bill Beament and Evolution Mining chairman Jake Klein.

Mr Stokes also owns a $67 million stake in gold miner Saracen Mineral Holdings, which has seen its share price rise 94 per cent since January, offset slightly by a $34 million stake in Capilano Honey, which has dropped 15 per cent.