Gina Rinehart’s ex son-in-law Ryan Welker in legal battle over a gold mine
Gina Rinehart’s former son-in-law Ryan Welker has been locked in a legal battle with a horse-breeding mining magnate over a lucrative gold mine.
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The former son-in-law of Australia’s richest woman has been caught up in a stoush over control of a gold mine in the Philippines that also involves a mysterious mining magnate who once gave an Arabian horse to tenor Andrea Bocelli.
Ryan Welker, the estranged husband of Mrs Rinehart’s daughter Hope, won control of the Australian company that controlled the Co-O mine, on the troubled southern Philippines island of Mindanao, after a boardroom stoush in June.
The move froze out another Australian mining figure, Jeff McGlinn, who breeds Arabian horses and whose ritzy Monaco parties have been attended by Saudi royalty.
Now, the Australian company over which Mr Welker and Mr McGlinn were fighting, X64, appears to have lost control of the Co-O mine, which produced almost 90,000 ounces of gold last year, worth about US$162m (A$245m).
Two opposing Filipino camps, one of which has links with Mr McGlinn, claim to be its rightful owners and tensions on the ground are high.
According to local media reports, in May former cop Joseph Mahusay, who has reportedly previously acted as Mr McGlinn’s security guard, was among 21 men temporarily detained by Philippines police after leading a convoy of 11 cars that sneaked into the Co-O mine site by tailgating dump trucks through the gate.
Cops allegedly found three Glock handguns and dozens of rounds of ammo hidden in one of the cars.
Last month, directors put in place by Mr Welker appointed administrators Martin Ford and Simon Theobald of PwC to sort out the mess.
X64 owns 40 per cent of the Co-O mine directly but the remaining 60 per cent has been held for it through what the company has described as “various agreements” that it said entitled it to all the returns from the venture.
This arrangement was necessary because Philippines law requires at least 60 per cent of a company that holds a mining licence to be owned by locals.
Until recently Philippines lawyer Raul Villanueva was recorded as the owner of the 60 per cent stake, which he agreed to hold on trust for X64.
But in May last year the shares were allegedly transferred to two other Filipinos, Mr Mahusay and Ramon Austria.
Federal Court documents filed by the administrators show that the transfer was allegedly executed by Mr McGlinn, who was at the time executive chairman of X64 and held a power of attorney from Mr Villanueva giving him the ability to dispose of the shares.
However Mr Villanueva has cancelled the power of attorney and in February told X64 that as a result the share transfer “will be considered null and void”.
He said he had also cancelled the trust arrangement between him and X64, making him personally the owner of 60 per cent of the mine.
The battle between Mr Villanueva and Mr Mahusay and Mr Austria over ownership of the shares is currently before the courts in the Philippines.
Mr Ford told the Australian Federal Court that he and Mr Theobald needed more time to investigate and asked for permission to put off a second meeting of the company’s creditors.
Last week, Justice Mark Moshinsky allowed them an extra six months.
There is no suggestion Mr Welker has done anything wrong. He declined to comment because the case is complex and ongoing.
Mr McGlinn has been approached for comment.
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