A $700 million week

The focus of wealth watchers had clearly been on Perth this week, with the collapse of reclusive millionaire Ric Stowe’s mining business, Griffin Coal.

The sheer size of the collapse – there are debts of $700 million involved – has rightfully meant plenty of media attention. After all, it’s not every day a big chunk of the empire of one of Western Australia’s richest people spectacularly falls over.

However, while all eyes have been on Stowe, another West Australian mining magnate has quietly been building on his substantial fortune.

Andrew Forrest, founder and head of iron ore miner Fortescue Metals, has watched his company’s share price jump more than 15% this week after a big rise in iron ore spot prices, apparently caused by Chinese steel mills buying up as much iron ore as they can get their hands on.

Whatever the reason, the buying splurge has had a big impact on the size of Forrest’s sake in Fortescue, which has jumped $680 million this week to just over $5 billion.

Not bad for your first week back at work, is it?

Based on last year’s BRW’s Rich 200, Forrest would probably be back on top as Australia’s richest person, although Clive Palmer’s plans to float a big chunk of his mining empire may well see Forrest unseated before this year’s list comes out in late May.

Of course, even at $5 billion, Forrest’s fortune is a long way from its peak of $12 billion a few years ago, when Australia’s mining boom was in full swing.

In the midst of the GFC, Forrest’s stake fell to just above $2 billion, but it has certainly risen dramatically in the last 12 months, with Fortescue shares up more than 250%.

In what should be a big year for Australia’s richest entrepreneur, Twiggy remains the man to watch.