Mineral Resources directors Jacqueline McGill and Susie Corlett quit as proxy advisers turn up the heat

Efforts to clean up its act after a series of scandals are in disarray, with two Mineral Resources independent board members quitting as proxy advisers turn up the heat on directors who sit on other boards.

Mineral Resources board member Jacqui McGill has quit, alongside Susie Corlett. Picture: Tricia Watkinson

Efforts by Mineral Resources to clean up its act after a series of scandals involving managing director Chris Ellison are in disarray after the resignation of two independent board members.

Jacqueline McGill and Susie Corlett have resigned effective immediately, just five months after they were named as key members of the independent ethics and governance committee to oversee the company’s compliance and to ensure it met legal and ethical standards.

The resignations come as proxy advisers turn up the heat on MinRes directors who sit on other boards, given the extent of the governance issues at the Perth-based mining services provider and iron ore and lithium producer.

The resignations point to tensions within the board over efforts by Ms McGill and Ms Corlett to get the MinRes house in order. The company share price fell 9 per cent to $16.61 in trading on Wednesday.

Proxy adviser Ownership Matters recommended against Ms Corlett’s re-election to the board of mineral sands miner and taxpayer-backed rare earths player Iluka Resources based on her link to MinRes.

Mineral Resources founder Chris Ellison. Picture: Supplied

Iluka defended Ms Corlett, saying she should be judged on her performance at Iluka and that had been exemplary.

It is understood any MinRes directors who sit on other boards will face similar proxy recommendations against their re-election.

Ownership Matters said that during Ms Corlett’s time on the MinRes board, there had been “material corporate governance shortcomings”, particularly regarding related party transactions and board oversight.

In response, the Iluka board said Ms Corlett was a highly experienced and effective director of their company.

“Her contribution to the board has been invaluable in driving Iluka’s objective, which is to deliver sustainable value. The board has the fullest confidence in Ms Corlett.”

The MinRes ethics and governance committee, which also included independent non-executive directors Denise McComish, was set up after revelations about Mr Ellison’s involvement in a tax evasion scheme, misuse of company funds and third-party transaction involving members of his family.

The future of the committee and its work remains unclear now that Ms McGill and Ms Corlett have quit.

The committee was tasked with reviewing related party transactions involving Mr Ellison and overseeing internal and external investigations, including whistleblower reports and ethical breaches.

MinRes said last November that the committee could reopen previously closed investigations if further information came to light.

Ms McGill only joined the MinRes board in January last year. She serves as a non-executive director at Goldfields Limited, New Hope Group and 29 Metals Ltd as well as the Royal Automobile Association of South Australia.

Ms Corlett joined the MinRes board in January 2021. She serves as a non-executive director at Iluka Resources, Aurelia Metals and Silex Systems.

Their resignations come hot on the heels of The Australian revealing that MinRes is at war with Chevron and the WA government over shipping levies on every tonne of iron ore it exports from the Port of Ashburton in WA.

MinRes said at the weekend that it opted not to disclose the levies or a legal dispute over payment to the market because it considered the charges invalid.

The levies are the latest blow to the embattled company’s Onslow Iron project. The success of Onslow Iron — already facing cost blowouts and production downgrades amid big question marks over a 150 kilometre-long haul road connecting mining operations to the port facilities — is crucial to MinRes’ survival and thousands of jobs as it teeters under a $5.8bn debt pile.

Oil and gas giant Chevron stands to pocket more than $1bn from over the life of the Onslow Iron project under the terms of a secret port agreement with the WA government.

MinRes has launched legal action after being ordered to pay the levies by the Pilbara Port Authority that will be passed on to Chevron, which built the Port of Ashburton before handing it over to the WA government as public state-owned infrastructure.

The WA government has in turn taken action against MinRes in an attempt to recover what it alleges are already more than $5m in unpaid and overdue charges.

The Australian revealed the dispute over the previously undisclosed levies a day after Mr Ellison sent a message to the company’s 6000-strong workforce vowing to “once again prove the naysayers wrong”.

“Our financial position is strong – solid earnings continue to underpin a strong liquidity position. Our debt is unsecured, long-tenor and covenant-light bonds that were designed to ensure we had the flexibility to invest in the next stage of our business growth,” Mr Ellison said in the message to staff obtained by The Australian.

MinRes chairman James McClements, who is on his way out the door in the wake of the scandals now under investigation by the Australian Investment & Securities Commission, said: “Both Susie and Jacqui have dedicated substantial time and effort over recent months in our efforts to improve governance and procedures across the business, while navigating their significant other professional commitments.”

Mr Ellison has agreed to exit as managing director by April next year.

Originally published as Mineral Resources directors Jacqueline McGill and Susie Corlett quit as proxy advisers turn up the heat