Key lieutenant to NZ’s richest man takes on MinRes clean-up
Mineral Resources has turned to former Rank Group executive Malcolm Bundey — who has no experience in mining — to lead its board.
Business
Don't miss out on the headlines from Business. Followed categories will be added to My News.
Billionaire Robert Millner says Malcolm Bundey is the right choice to get embattled Mineral Resources back on track as the company looks to recover from a series of scandals involving managing director Chris Ellison and three recent board exits.
Mr Bundey’s appointment as chairman comes with MinRes eyeing other new blood for its depleted board while under investigation by the Australian Securities & Investments Commission.
Mr Bundey spent much of his executive career working for New Zealand’s richest man, Graeme Hart, at Rank Group.
Mr Ellison made his fortune and co-founded MinRes after moving to WA from New Zealand, and is understood to have already met Mr Bundey face-to-face to discuss the challenges he faces as the new chairman.
The MinRes share price fell more than 5 per cent to $25.05 in early trading on Monday.
Mr Bundey said MinRes was built on the “entrepreneurial and proactive culture” which had attracted him to every senior role in his career.
“I look forward to addressing the challenges before us, which we’ll approach head-on. I’m confident the new board will lead the company through the next chapter, continuing to strengthen the company’s corporate governance while focusing on a collegiate and success-driven culture in the boardroom,” he said.
Mr Bundey will replace current chairman James McClements, who along with the rest of the MinRes board, came under fire over governance and disclosure standards after revelations Mr Ellison had been involving in a tax evasion scheme and various related party transactions.
Billionaire Millner, who is chairman of building products and property and investment company Brickworks, with Mr Bundey as his deputy, said his board colleague was a no-nonsense character.
“He’s a good man. He a straight shooter and he’s good at solving problems. So, hopefully he can turn it around for them,” Mr Millner said.
MinRes taken a punt on Mr Bundey despite his lack of experience in the mining industry. While at Rank, he was chief executive of US-based Graham Packaging, Closure Systems International and Evergreen Packaging. He is also a former chief financial officer at agriculture and food manufacturing business Goodman Fielder.
MinRes said its board unanimously endorsed Mr Bundey as its preferred candidate on April 10.
Independent directors Jacqueline McGill and Susie Corlett quit six days later and Denise McComish followed them out the door at the end of April.
Mr Bundey will chair the board’s ethics and governance committee which all three women were part of and lead the board renewal process. He will join the board from July 1.
MinRes said Mr Bundey engaged with the board and management over several months, including visiting the company’s Onslow Iron project in WA’s Pilbara, before agreeing to take on the chairman’s role.
It is understood he has met the some of company’s notable shareholders including L1 Capital and OC Funds Management.
“Mr Bundey is committed to dedicating a substantial amount of time to the role and will be actively engaging with shareholders and working with management and board colleagues to ensure a seamless transition into the chair role,” MinRes said.
“At the same time, he will remain focused on continuing to address the company’s challenges, including further strengthening corporate governance.”
Industry superannuation fund Hesta last week sold its remaining shares in MinRes and cast doubt on the company’s capacity to clean up its act.
The MinRes board is capped at nine members and there will be three vacancies once Mr McClements departs after a handover with Mr Bundey.
The company has flagged a review of its board capabilities as part of Mr Bundey’s appointment.
The six current board members include former cricketer Justin Langer, businesswoman Xi Xi, indigenous leader and former public servant Colleen Hayward and Zimi Meka, founder of the Ausenco engineering business sold by Mr Clements’ Resource Capital Funds for $US578m in 2023.
Mr Bundey will be receive $750,000 per year, with half paid in cash and the balance in MinRes shares. The company has also proposed granting him 780,000 in share options in three tranches out to 2028 which can be exercised at $25.40.
“I’m committed to putting in the hours and working as hard as it requires to restore shareholder confidence and value,” Mr Bundey said.
The Australian revealed last week MinRes is selling a controversial land package in a deal with the potential to reap tens of millions of dollars for the company and, separately, for Mr Ellison.
MinRes has put a 307ha land package north of Perth on the market as it looks to clean up its act and exit various related-party arrangements which sparked heavy criticism of its governance standards.
The sale of the industrial-zoned land, being marketed by CBRE, is expected to reap somewhere between $100m and $150m as MinRes teeters under a $5.4bn net debt pile.
More Coverage
Originally published as Key lieutenant to NZ’s richest man takes on MinRes clean-up
Liquidators in $70m collapse put major sites on the block
Liquidators are continuing a sell-off of dairy assets run by failed ASX-listed Beston Global Food, with a surprise buyer found for a high-profile factory.
Tariffs no problem for The Yoghurt Shop
The global trade war is emerging as a blessing in disguise for family-run company The Yoghurt Shop, which has recruited a former politician to help with its export push.