Australian mining heiress Gina Rinehart is planning to invest $500m in a new infant milk powder venture Hope Dairies.
According to media reports, Rinehart is expected to sign a memorandum of understanding with Queensland Government and the project's Chinese partners over the weekend.
The new investment comes at a time when a free-trade agreement is expected to be announced between Australia and China. The agreement will potentially lower tariffs on Australian dairy exports, reported The Australian.
Rinehart's flagship company Hancock Prospecting will own a majority stake in the Hope Dairies project.
Hope Dairies will construct a processing plant on a 5,000 hectare farmland in southeast Queensland.
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: Hope Dairies will export infant formula to China. Photo: courtesy of Keerati / Freedigitalphotos.net.
