Australia’s richest man Andrew ‘Twiggy’ Forrest donates $5 billion

Australia’s richest man Twiggy Forrest has donated a staggering $5 billion to charity, shedding one-fifth of his stake in an important asset.

Australia’s richest man Andrew “Twiggy” Forrest has donated a staggering $5 billion in assets to his philanthropic foundation, shedding one-fifth of his stake in an important holding.

Forrest — who is the richest person in Australia after Gina Rinehart — and his wife Nicola made the donation via 220 million shares in his company, Fortescue Metals Group, which were transferred into the hands of the Minderoo Foundation.

The shares represented one-fifth of the Forrests’ shareholding in the mining company that Twiggy founded in 2003 and of which he is now executive chairman.

Twiggy Forrest has donated $5 billion in Fortescue shares to the Mindaloo Foundation. Picture: Supplied

The Minderoo Foundation was established by the Forrests in 2001 and aims to support wide-ranging initiatives including ocean and cancer research, ending slavery and funding community projects.

In 2013, the Forrests were the first Aussies to sign Bill Gates’s and Warren Buffett’s “giving pledge”, which encourages billionaires to give away more than half of their wealth in their lifetimes.

It’s understood the couple has donated more than $7 billion to Minderoo since the foundation’s launch.

Forrest said the latest donation would help to combat an increasingly unstable world.

“As our world faces enormous challenges, we have elected to continue to use our material wealth to help humanity and the environment meet these existential risks,” he told Nine newspapers.

“Accumulating wealth should only be a small part of a person. Their contribution to their family and society is way more important. If you happen to be good at accumulating wealth, then I believe in using that skill for the greater good.”

A Minderoo Foundation researcher diving on Ningaloo Reef. Picture: Carly Keech

According to The List, an annual compilation of Australia’s richest 250 people and how they made their money, Forrest is Australia’s richest man and second richest person with a fortune of $35.21 billion, made primarily through the Fortescue mining company.

In recent years he has extended his focus to a joint initiative, Fortescue Future Industries, which funds green energy projects.

With the end of the financial year fast approaching, News.com.au understands the Forrests’ donation to Minderoo will be tax-deductible but, as it is a disposal of shares, capital gains tax will still apply.

Nicola Forrest told Nine the latest donation would help to provide more significant, focused support to help vulnerable communities, protect the oceans and promote gender equality.

“I believe we all need to do what we can with what we have, so I am pleased that the transfer of these shares will escalate our efforts to help those who need it most,” she said.

“From the outset and over the past 22 years, we have remained focused on supporting families to ensure every child has the opportunity to thrive and reach their full potential — as children are our future.”

Forrest’s wife and Minderoo co-founder Dr Nicola Forrest said the donation would help vulnerable communities, protect oceans and promote gender equality. Picture: NCA NewsWire / Gary Ramage

Both wings of the Fortescue empire are facing something of a mass employee exodus, with almost 20 executives abandoning ship in just two years.

In January, yet another member of the C-suite — former chief financial officer Ian Wells — walked, with the financial community describing the high turnover rate as “challenging” and “not ideal”.

The executive floodgates truly opened two years earlier, though, when cost blowouts and delays at Fortescue’s Iron Bridge magnetite project forced the resignations of chief operating officer Greg Lilleyman and projects director Don Hyma.

Yet another flurry of high-profile departures was triggered after a surprise restructure stripped about $50 million from the bonus budget that was available to Fortescue’s executive employees.

Mid-shake up in May last year, Forrest himself stepped up to take the role of executive chairman — his most hands on role at the company in more than a decade.