Rinehart bets big on rare earths

Australia’s richest person, Gina Rinehart, has significantly increased her bet on rare earths by becoming the biggest shareholder in US producer MP Materials.

The mining magnate bought an additional one million shares in MP Materials during the third quarter through her privately-held Hancock Prospecting, lifting its stake to 8.4 per cent and making it the firm’s biggest shareholder.

She held about $US3 billion ($4.6b) of US-listed stocks and exchange-traded funds as of September 30, according to a new regulatory filing.

After MP’s share price doubled over the period, the holding was valued at $US997 million at the end of September — believed to the biggest position in Hancock’s portfolio.

MP Materials chief executive and founder James Litinsky is the company’s second biggest shareholder, with a 7.9 per cent stake. The firm — operator of the only rare-earths mine in the US — secured a $US400m equity investment from the Pentagon in July, drawing Mrs Rinehart’s empire deeper into America’s defence supply chain.

The entrepreneur, who made her fortune from developing massive iron ore deposits in WA, is currently worth $US32.3b, according to the Bloomberg Billionaires Index.

Mrs Rinehart has also upped her stake in rare-earths hopeful Arafura to 15.7 per cent after backing a $475 million capital raise last month.