A SENIOR executive with Gina Rinehart's Hancock Prospecting says the enigmatic Perth billionaire swooped on key stakes in Fairfax Media and Ten Network purely for business reasons rather than as an attempt to buy political influence.

Former West Australian attorney-general Cheryl Edwardes, who was recruited last year to the privately held Hancock Prospecting as head of government relations, said the mining magnate did not need the media to promote her views when she had her own website, reported The Australian.

"If she wants to influence debate she can use her website, so I don't see that as having been the prime mover," she said, adding the media investments were "definitely a business decision".

Ms Rinehart, the nation's wealthiest person, has spent almost $300 million buying 10 per cent of Ten Network and almost 5 per cent of Fairfax Media.

Observers have speculated that Ms Rinehart, who campaigned strongly against the Labor Government's proposed resources super-profits tax last year, wants to build her shareholdings in the media companies as a way of promoting her ideas.

Earlier, in an address to an American Chamber of Commerce in Australia function, Ms Edwardes warned that Australia was losing its competitive advantage in mining.

Its natural freight advantage, brought about due to its proximity to Asia, was being gradually eroded as foreign companies including Brazil's Vale began using larger ships for export that will will cut the costs of shipping.

Ms Edwardes was formerly special counsel at law firm Minter Ellison in Perth.

She served as WA's environment minister, and first female attorney-general, in the Court government.



Read more about Gina Rinehart at The Australian

Originally published as Rinehart 'not out to buy political clout'