Mineral Resources awards new contract to company linked to Chris Ellison’s daughter

MinRes has struck another deal with a company linked to one of Chris Ellison’s daughters as the miner reconsiders its plan to part ways with its embattled managing director.

New Mineral Resources chair Malcolm Bundey. Picture: Supplied

You can now listen to The Australian's articles. Give us your feedback.

You can now listen to The Australian's articles.

Mineral Resources is reconsidering its plan to part ways with managing director and co-founder Chris Ellison over his involvement in an offshore tax scheme, misuse of company resources and related party dealings.

Meanwhile, the embattled MinRes has struck another deal with a company linked to one of Mr Ellison’s daughters, with the caveat that he had no involvement in the awarding of the shipping-related contract after a competitive tender process.

Mr Ellison had been expected to leave MinRes by April next year at the latest under a leadership transition plan unveiled by the company in November.

It told investors on Tuesday that new chair Malcolm Bundey was reviewing the managing director transition process and that any change would need to be in the “best interests of shareholders”.

Mr Ellison owns an 11.5 per cent stake in MinRes and has watched his personal wealth – estimated at more than $2bn – shredded amid the company’s and his fall from grace.

Mineral Resources founder Chris Ellison. Picture: Supplied

Rusted-on Ellison supporters spoke out in his defence last year and challenged the board’s plan to replace him.

L1 Capital’s Rafi Lamm was a public voice in the push for Mr Ellison to stay.

Mr Bundey revealed his review of the succession plan as he started briefing investors and proxy advisers on strategy.

His presentation notes confirmed that the Australian Securities and Investments Commission was investigating MinRes and potential breaches of continuous disclosure and general corporate governance rules and directors’ duties.

The scope of the ASIC investigation includes related party transactions, and the initial public offering of lithium play Kali Metals. Mr Ellison and a number of his friends and associates, including his mother-in-law, piled into the extraordinary IPO of November 2023.

MinRes said later that it had been blocked from participating in a joint venture or the IPO after meetings with Kali; MinRes emerged with a near 10 per cent stake in Kali within two days of its debut on the ASX.

Mr Bundey declined to be interviewed by The Australian.

The presentation released on Tuesday also revealed MinRes entered into a new contract with a company linked to another Ellison.

Arrangements linked to Kristy-Lee Craker’s Ship Agency Services (SAS) and Propel Marine came to light last year.

MinRes said on Tuesday that it started a tender process with nine parties in December for services to clear transhippers and tugs. The then-members of the MinRes ethics and governance committee – Denise McComish, Susie Corlett and Jacqui McGill – recommended the awarding of the contract to Propel, with the board signing off on the deal in April.

Ms McGill, Ms Corlett and Ms McComish quit as independent non-executive directors in the same month.

In November last year, MinRes revealed companies linked to Ms Craker were asked to repay $158,000 after an investigation into an undisclosed “rent relief” arrangement that lasted for 11 years.

MinRes said at the time the related-party nature of the rent relief offered to Ms Craker’s interests was identified in 2022-23 and wound up.

On Monday, MinRes named Ross Carroll, the former boss of mining contractor Macmahon Holdings, and former Origin Energy chief financial officer Lawrie Tremaine as directors.

Additional board candidates have been identified and were being assessed.

King & Wood Mallesons has been hired to review the MinRes corporate governance framework and identify gaps.

Mr Bundey replaced James McClements who departed on June 30.

Mr McClements agreed to leave as the governance crisis was erupting last year, concluding a decade leading the board. Mr McClements said at the time: “It’s appropriate my successor should be deeply involved in the appointment of the next CEO.”

Mr Bundey said on Monday that the recruitment of Mr Carroll and Mr Tremaine “reflect my immediate priorities as chair – to strengthen our board composition, our corporate governance and place a comprehensive focus on the balance sheet”.

“This is a major first step in our board renewal process. I acknowledge that regaining trust takes time, sustained effort and delivery of performance outcomes, but I am confident our new directors will greatly assist the MinRes Board and executive in ensuring we deliver on our commitments.”

The other board members are retired cricketer Justin Langer, businesswoman Xi Xi, Indigenous leader and former public servant Colleen Hayward and Zimi Meka, founder of the Ausenco engineering business.