Australian mining heiress Gina Rinehart has announced plans to invest $500m in an infant milk powder joint venture Hope Dairies for export to China.
The move comes in advance of an expected announcement of a free-trade agreement between Australia and China that will potentially lower tariffs on Australian dairy exports.
A memorandum of understanding will be signed between Rinehart, Queensland government and the project's Chinese partners.
Rinehart's flagship company Hancock Prospecting will own majority stake in the Hope Dairies project.
Work under the project includes the construction of a processing plant in southeast Queensland which will be constructed on a 5,000 hectare farmland.
The infant formula produced at the plant will be exported to China, beginning 2016.
Queensland Dairyfarmers' Organisation president Brian Tessmann said: "The investment would restore dairy processing capacity which Queensland has lost over the last decade and a half.
"China presents a real opportunity for our industry to form close partnerships to supply high-quality dairy products to their growing population, and in particular infant formula.
"This opportunity will provide much needed diversification for our Queensland dairy industry."
Image: The infant formula produced at the plant will be exported to China, beginning 2016. Photo: courtesy of Keerati / Freedigitalphotos.net.
