Mineral Resources demanded $158k repayment from companies linked to Chris Ellison’s daughter

Companies linked to Mineral Resources managing director Chris Ellison’s daughter were asked to repay $158,000 they received in ‘rent relief’, the miner has revealed.

Mineral Resources managing director Chris Ellison.

Mineral Resources has revealed companies linked to the daughter of its embattled managing director Chris Ellison were asked to repay $158,000 after an investigation into a “rent relief” arrangement that lasted for 11 years.

MinRes said the related-party nature of the rent relief offered to Kristy-Lee Craker’s companies was identified in 2022-23 and action was taken to bring the arrangement to an end.

The company is embroiled in a governance crisis with major super funds and the Future Fund questioning its response to revelations Mr Ellison was involved in a tax evasion scheme and allegedly misused company resources.

In a response to a please explain from the ASX issued late on Thursday, MinRes said it had given a tick of approval to rental payments totalling more than $32m to Mr Ellison and other co-owners of commercial properties after a review of lease arrangements in place since 2006-07.

“The board conducted a rigorous process in 2024 to understand whether the current rental arrangements are at a fair market value and is satisfied that this is the case,” it said.

MinRes said it continued to investigate instances where company resources were used for Mr Ellison’s personal benefit, including work on his boat, house and his personal finances.

“Specifically, MinRes procured goods and services on behalf of Mr Ellison for his personal benefit. Procedures existed to obtain timely repayment from Mr Ellison for these goods and services,” it said.

MinRes said that after a review of records and valuations it required two companies linked to Ms Craker, Ship Agency Services (SAS) and Propel Marine, to repay a total of $158,000 for the period between 2012 and 2023.

MinRes admitted the rent relief arrangement should have been disclosed to shareholders throughout its existence.

However, MinRes defended not alerting shareholders after it moved to end the scheme and seek payment.

“The board considered that the information was not materially price sensitive, particularly given the quantum involved, as well as MinRes’s ability to seek repayment. Accordingly, MinRes did not consider that there was a requirement to make retrospective disclosure in the annual report for 2022-2023,” it said in a response to the ASX.

MinRes also defended its disclosures around listing Ms Craker’s SAS as its preferred ship agency for the export of iron ore from WA, while acknowledging the arrangement delivered a financial benefit to SAS.

“Given that MinRes does not directly transact in these arrangements or provide any monetary consideration to SAS for these purposes, it does not consider them related party transactions requiring disclosure in its annual reports,” it said.

MinRes said on November 4 that a board-ordered investigation found the mining billionaire had at times failed to act with integrity and that financial benefits had flowed from MinRes to related parties, including his Ms Craker.

Perth-headquartered MinRes said Mr Ellison would remain managing director pending an orderly leadership transition in the next 12-18 months.

The company is under investigation by the Australian Securities and Investments Commission. It is also under pressure from big super funds and the Future Fund over its response to the findings of the board-ordered investigation.

Originally published as Mineral Resources demanded $158k repayment from companies linked to Chris Ellison’s daughter