Kidman estate: Gina Rinehart’s Outback Beef will invest $19m to increase herd size

By @garima_satija on
RTSRFDZ
Australian mining heiress and Chairman of Hancock Prospecting group Gina Rinehart prepares to award medals to competitors at the Australian Synchronised Swimming Championships in Sydney, Australia, April 25, 2015. Reuters/Jason Reed

After blocking the sale of S. Kidman & Co Cattle Empire to a Chinese firm, the Australia’s largest single landholding has been finally sold to Outback Beef Pty Ltd, which is owned by Australia’s richest woman and mining magnate Gina Rinehart's Hancock Beef Pty Ltd (63 percent) and Chinese consortium Shanghai CRED Real Estate Stock Co Ltd (33 percent).

According to the proposal, Hancock will look into the day to day working of the cattle empire, which means that Kidman will remain majority Australia-owned.

The joint venture has proposed significant investment into the cattle empire as it wants to increase the herd size by 20,000 head of cattle in a year and a half. “Outback Beef has indicated it will invest up to $19 million in capital improvements to increase efficiency and carrying capacity," Treasurer Scott Morrison said in a statement.

"Importantly this investment will also achieve the creation of 35 new full-time permanent jobs by June 2018 while also employing many more new contractors and short terms specialists,” he added. Most of the jobs will be given to locals as well as indigenous employees.

Furthermore, Morrison also announced that the largest station in Kidman group Anna Creek along with its outstation The Peake will be acquired by neighbouring family The Williams. Hence, the Australian ownership of the group in total will increase from 66.1 per cent to 74.7 per cent.

“Importantly this investment will also achieve the creation of 35 new full-time permanent jobs by June 2018 while also employing many more new contractors and short terms specialists,” Morrison added.

Earlier this year in April, Morrison blocked the $71 million sale of Kidman to Dakang Australia Holdings, a China-based company. At that time, Morrison said that the decision may be contrary to national interest.

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