Andrew Forrest

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Andrew Forrest
Andrew Forrest (cropped).jpg
Born John Andrew Henry Forrest[1]
1961 (age 52–53)
Perth, Australia
Residence Perth, Australia
Nationality Australian
Alma mater University of Western Australia
Occupation Non-executive chairman, Fortescue Metals Group
Net worth
Board member of
Niagara Mining
Religion Christianity[4]
Spouse(s) Nicola Forrest
Children 3
Relatives

John Andrew Henry Forrest (born 1961), better known as Andrew Forrest or by his nickname Twiggy Forrest, is a Western Australian mining magnate currently a non-executive chairman and previously the chief executive officer of Fortescue Metals Group (FMG).[5] With an assessed net worth of A$5.86 billion in 2014, Forrest is ranked as the seventh richest Australian according to the BRW magazine;[3] having been the richest person in Australia during 2008.[6][7]

In 2013, Andrew Forrest and his wife, Nicola, were the first Australians to pledge half their wealth to charity whilst living.[8] He is also a substantial supporter and official public Ambassador of the Australian Indigenous Education Foundation.

Early life[edit]

Forrest was born in Perth, Western Australia, the youngest of three children of Donald and Judith Forrest.[9] He is the great-great nephew of John Forrest, the first premier of Western Australia.[10] His great-grandfather, David Forrest, was the manager and (with brothers John and Alexander, and Septimus Burt[11][12][13]) part-owner of Minderoo Station. Forrest's early years were spent as a jackaroo at Mindaroo Station, in the Pilbara.[14][15] Minderoo was owned by the Forrest family until it was sold in 1998 by Donald[16] due to relentless drought and debt,[9] but was bought back by Forrest in 2009.[17][18]

Forrest was educated at Onslow Primary School,[9] before moving back to Perth to attend Christ Church Grammar School and then Hale School.[19] As a child, he stuttered,[9] which is how he came to develop a relationship with Ian Black, whose father Scotty Black, an Aborigine,[20] became Forrest's mentor. Forrest attended the University of Western Australia[21] where he studied a double major in economics and politics.[22]

Career[edit]

Anaconda Nickel[edit]

After graduating, he worked as a stockbroker at the brokerage houses Kirke Securities and Jacksons. In his early 30s, he became the founding CEO of Anaconda Nickel (now Minara Resources), which has since grown to be one of Australia's single largest mineral exporters with its Murrin Murrin Joint Venture nickel project.

Fortescue Metals[edit]

In 2003, he took control of Allied Mining and Processing and renamed it Fortescue Metals Group.[23] He is still a major shareholder of FMG, through his private company, The Metal Group.[24] Since then, the company has grown to possess three times the tenements of its nearest rival in Western Australia's iron ore rich Pilbara region. Fortescue holds major deposits at Mount Nicholas, Christmas Creek, Cloudbreak, and Tongolo. In 2007, he took control of a Niagara Mining, which owns tenements around Laverton, Western Australia.[25] He was nominated as the 2011 Western region Ernst & Young Entrepreneur of the Year.[26]

The Australian Securities and Investment Commission took legal action against FMG and Forrest. Although an initial ruling by Justice John Gilmour[27] in 2009 found Forrest hadn't acted in a misleading or deceptive manner,[28] Chief Justice Patrick Keane and judges Arthur Emmett and Raymond Finkelstein of the Federal Court of Australia[29] overturned this decision in 2011, finding that FMG and its Chairman and CEO, Andrew Forrest, had engaged in misleading or deceptive conduct and breached the continuous disclosure provisions in the Corporations Act, 2001 (Cth),[30] by claiming to have binding contracts with China.[28] The court found that a Chinese framework agreement does not amount to a binding contract, in the natural meaning of the word.[31] If found to have breached director's duties, Forrest faces the possibility of being banned as a director of an ASIC-listed company.[32] FMG appealed against the decision,[33] and in October 2012, the High Court found in favour of FMG and Forrest, reversing the decision of the full bench of the Federal Court and agreeing with the original 2009 decision by Justice Gilmour.[34]

Forrest described the Gillard Government proposed Minerals Resource Rent Tax as "economic vandalism"[35] and a "mad dog's breakfast"[36] that would drive up foreign resource ownership.[37] He stated he would challenge it in the High Court as being unconstitutional, as it discriminates against states, and fails to appropriately capture big producers BHP Billiton and Rio Tinto.[38] WA premier Colin Barnett has stated the state government would back constitutional action,[36] admitting the tax had been suggested to him as a "sovereign risk". He was highly critical of the government's expenditure of $38M on an advertising campaign, that was not approved using the usual processes, as it had to "counter mining industry 'spin' about the resources super profits tax".[9] The treasurer Wayne Swan says the big miners will pay at least A$2 billion tax, and wrote to the head of BDO Accounting, who modelled the claims Forrest used, noting they were "utterly unrealistic" and riddled with errors.[39] Treasury concurred that they would be unable to release the assumptions underpinning its forecasts, as they were based on confidential information provided by the big miners.[39] Gillard struck a deal with BHP Billiton, Rio Tinto and Xstrata to develop the MRRT after the failed mining tax under Rudd.[40] Independent MP Andrew Wilkie requested the government take Forrest's mining tax grievance to heart.[36]

Cattle industry[edit]

After buying back the family property, Minderoo Station in 2009 Forrest acquired the adjoining properties, Nanutarra and Uaroo Stations in 2014. Forrest's total pastoral holdings in the Pilbara is now 7,300 square kilometres (2,819 sq mi).[41]

Meat processing company Harvey Beef was acquired by Forrest in 2014 for A$40 million. The company is the biggest exporter of beef in Western Australia and the only one accredited to export to China.[42]

BioMD[edit]

In June 2011, Allied Medical, of which Forrest owns 46%, was acquired by BioMD for over $20 million.[43]

Wealth rankings[edit]

Forrest appeared on the top of the BRW Rich 200 in 2008, with a net worth of A$9.41 billion.[44] In subsequent years, his wealth has halved, in spite of the rapid growth of those with interests in the Australian resources sector.[45][46]

Year BRW
Rich 200
Forbes
Australia's 40 Richest
Rank Net worth (AUD) Rank Net worth (USD)
2008[6] 1 Increase $9.41 billion Increase
2009[44] 8 Decrease
2010[44][47] 4 Increase $4.24 billion Increase
2011[7] 3 Increase $6.18 billion Increase
2012[48] 4 Decrease $5.89 billion Decrease
2013[49] 9 Decrease $3.66 billion Increase
2014[3] 7 Increase $5.86 billion Increase
Legend
Icon Description
Steady Has not changed from the previous year
Increase Has increased from the previous year
Decrease Has decreased from the previous year

Philanthropy[edit]

Indigenous Australians[edit]

During his tenure at Fortescue, Forrest has been recognised for his work on the issue of indigenous disadvantage,[50] using Fortescue Metals Group’s Vocational Training and Employment Centre to equip members of the indigenous communities for employment in the mining industry.[51]

After stepping down as Chief Executive Officer of FMG to reflect that he had been spending more than 50% of his time on Indigenous philanthropy,[5] and to hand leadership reins to former head of engineering company Thiess, Nev Power,[52] he became Ambassador of the Australian Indigenous Education Foundation.[53] Encouraged by the philanthropic work of the Rockefeller Group, Warren Buffett, and Melinda and Bill Gates,[54] Forrest founded the Australian Children's Trust with his wife Nicola in 2001.[55] He also started the GenerationOne project, which was founded as a result of his hero and first mentor[56] outside his father, Scotty Black.[20] Forrest obtained assistance from James Packer and Kerry Stokes, who each donated $2 million, along with the support of their respective media stations, Channel 9 and Channel 7.[57] The organisation works with the Australian Children's Trust to help create sustainable solutions on addressing social disadvantage.[51]

With Kevin Rudd, Forrest launched the Australian Employment Covenant,[51] which campaigns to have businesses hire indigenous Australians, as they could "add value" to Australian businesses because they were "professional and reliable and wonderful" and that there is no reason for indigenous disparity.[20] He stated that he was dedicating time to the Covenant not because he was a "great guy", but that it was "good business".[58] GenerationOne ran a series of television advertisements privately funded by Forrest, Packer and Stokes.[59] Between 2008 and 2011, he obtained 253 business signatories to his covenant.[58] With then Prime Minister Kevin Rudd, Forrest is planning to employ 50,000 Aborigines.[60][61]

Forrest has long opposed welfare dependency for indigenous Australians.[62] As a part of this opposition, he recounted stories of young Aboriginal girls in the Pilbara offering men sex for cigarettes, which caused five indigenous women from the region to collectively lodge a complaint with the Human Rights and Equal Opportunity Commission that the comment was racist and vilified the community.[63]

Forrest has also been publicly accused of engaging in questionable methods of land acquisition,[64][65][66] and has also had accusations levelled at his company for failing indigenous trainees at FMG's vocational training centre in Port Hedland.[67]

Charitable donations[edit]

Through his children's charity, as of 2007, Forrest has donated $10 million, which of September 2007, received an extra $80 million injection to a total $90 million.[54]

In 2008, Forrest donated the proceeds from the sale of 5,000 tonnes (5,500 short tons) of iron ore to the Chinese earthquake relief effort.[4]

Forrest and his wife contributed to Hale School's "150th Anniversary, Gateway to the Future Appeal". In 2009, Forrest opened Hale's new library, named the Forrest Library in recognition of the contributions made by the Forrest family to the school.[68]

Forrest participated in the 2010 and 2011 St Vincent de Paul Society CEO sleepouts, joining the CEOs of Burswood Entertainment Complex, Perth Convention and Exhibition Centre, YACWA, Lycopodium Minerals, among others, to raise $3 million.[69]

In October 2013 in was announced that Forrest was to donate A$65 million towards higher education in Western Australia. At the time the sum was believed to be the highest philanthropic donation in Australia, with most going toward funding scholarships. The Minderoo Foundation, Forrest's private foundation, was renamed as the Minderoo Group is to be expanded to include higher education contributions. The foundation has given A$270 million through the foundation since 2001.[70]

Ending slavery[edit]

Forrest's daughter, Grace volunteered at an orphanage in Nepal and discovered the children she had looked after had been trafficked to be sex slaves in the Middle East. This distressed Grace and motivated her father to act.[71][72]

Walk Free Foundation[edit]

Forrest established the Walk Free Foundation in 2010 to fight modern slavery.[73] In 2013 the organisation launched the Global Slavery Index ranking 162 countries "based on a combined measure of three factors: estimated prevalence of modern slavery by population, a measure of child marriage, and a measure of human trafficking in and out of a country".[74] The Index estimates there are 29 million slaves worldwide, roughly half in India and Pakistan.[72]

In January 2014, Forrest announced a deal with Pakistan to do away with more than two million slaves in return for a chance to convert billions of tonnes of cheap coal into much needed energy.[75]

Global Freedom Network[edit]

Forrest founded the Global Freedom Network which the Pope, the Archbishop of Canterbury and the Grand Imam of al-Azhar will lead. The Global Freedom Network will work together to stop all religious faiths from using organisations involved with slavery in their supply chain.[71]

When I heard the news [that all parties had agreed to the venture] I have to admit I became emotional. This is going to change everything. This is set up like a high-achieving, measurement-driven, totally target-oriented company, it's like a hard-edged business. We are out to defeat slavery, we are not out to feel good. This is our mission. You see the complete hopelessness in the eyes [of enslaved people]. It’s like I’m stuck, I will never get help, I am dirt. Then you know that you can’t rest until you free them.

— Andrew Forrest, interviewed in 2014

Personal life[edit]

Forrest is a Christian[4] and is married with three children. His friends include former Labor Prime Minister Kevin Rudd, former Labor state Minister for Planning Alannah MacTiernan, Liberal state Minister for Indigenous Affairs Peter Collier, and former Liberal Prime Minister John Howard,[76] billionaire James Packer, former state Labor premier Brian Burke, deputy leader of the Liberal Party of Australia Julie Bishop, Olympic athlete Cathy Freeman, former athlete Herb Elliot, and billionaire media moguls Rupert Murdoch and Kerry Stokes, and billionaire businessman Lindsay Fox.[76]

He is an Adjunct Professor at the Chinese Southern University, a fellow of the Australasian Institute of Mining and Metallurgy, has an Australian Centenary Medal and Australian Sports Medal, and was awarded Citizen of the Year for Regional Development, and Australian Ernst & Young Social Entrepreneur of the Year.[26] He was formerly the Director of Australia's Export Finance and Insurance Corporation, the West Australian Chamber of Minerals and Energy, and Chairman of Athletics Australia.[55] Forrest has previously addressed the Queensland University of Technology,[77] and Christians in the Marketplace.[78]

References[edit]

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  64. ^ Yindjibarndi Protests
  65. ^ FMG's Great Native Title Swindle
  66. ^ http://www.abc.net.au/news/2012-11-20/fmg-accused-of-rigging-meeting/4382826
  67. ^ http://www.abc.net.au/news/2011-08-17/pilbara-mining-jobs-conditions/2844066
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  71. ^ a b Miller, Nick (18 March 2014). "Andrew Forrest's dream to stop all slavery". The Sydney Morning Herald. 
  72. ^ a b Milman, Oliver (18 March 2014). "Andrew Forrest signs up religious forces to fight slavery and trafficking". The Guardian (Australia). 
  73. ^ [1]
  74. ^ [2]
  75. ^ "Andrew Forrest strikes cheap coal deal to end Pakistan slavery". The Australian. 23 January 2014. 
  76. ^ a b Tom Cowie (16 August 2011). "Twiggy's got friends in high places". The Power Index. 
  77. ^ "Andrew Forrest to address QUT Business Leaders' Forum". Queensland University of Technology. 10 May 2011. 
  78. ^ "Upcoming event breakfast with Andrew Forrest". Christians in the Marketplace. 1 May 2010. 

External links[edit]