Rinehart tells Rio Tinto to move HQ to Australia
Mining billionaire Gina Rinehart says Rio Tinto (ASX, LON, NYSE:RIO) should move its headquarters from London to Perth, since iron ore boss Sam Walsh is now the company’s new CEO.
In a statement to Fairfax Media Rinehart said most of Rio's money was generated in Western Australia and it made sense for the company to set up in Perth.
“In congratulating Sam on his promotion to such an important position within Rio Tinto, we have urged him to take this opportunity and also move the Rio Tinto headquarters from London to Perth where given most of Rio Tinto's revenue is generated in Australia, it logically belongs,” she said.
Last week Rio released its December quarter results, revealing that its WA iron ore operations accounted for more than 70% of the company's annual earnings.
The miner, which is the second biggest mining company, has decided to prioritize Pilbara capex over Simandou, its ore project in Guinea, but analysts are questioning this move.
In April last year Rinehart took Rio to court, demanding the mining giant to pay her royalties for iron ore production at the Channar and Eastern Ranges mines in the Pilbara.
Rinehart, nicknamed Big G, owns a multi-billion dollar coal and iron ore empire, which makes her the second richest person in the industry, according to MINING.com’s list of the 40 wealthiest billionaires involved in minerals, metals and mining on the planet, with a combined wealth of well over $300 billion.