Mineral Resources’ Perth land sale to deliver windfall for scandal-plagued miner and its boss

Chris Ellison’s embattled Mineral Resources is selling a land package that is expected to reap somewhere between $100m and $150m as MinRes teeters under a $5.4bn net debt pile.

The Wodgina lithium project, operated by Mineral Resources, in the Pilbara Region of Western Australia.

Mineral Resources is selling a controversial land package in a deal that has the potential to reap tens of millions of dollars for the company and separately for its managing director Chris 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 that have 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.

The MinRes investment in the land package, known at the Northern Gateway Industrial Parks, has been one of several bones of contention with investors and regulators as the company deals with the fallout from a tax evasion scandal that was compounded by the misuse of MinRes resources and related party dealings, including with Ellison family members.

In the case of the land package, MinRes paid $45m for a 49 per cent stake in Northern Gateway Master Trust. The remaining 51 per cent of the trust is held by an entity known as Northern Gateway Investments, which is majority owned by Mr Ellison and his wife Tia.

MinRes acquired its stake from Goldman Sachs’ Austreo Property Ventures last May.

Mineral Resources founder Chris Ellison.

CBRE marketing material suggests the land, described as the most “strategically accessible, multi-modal targeted industrial precinct” around Perth, could be sold as two packages. Expressions of interest are scheduled to close on June 18.

MinRes has confirmed the proceeds from the sale will be distributed to the company and the Ellison-controlled Northern Gateway Investments.

In its 2024 annual report, MinRes made brief reference to holding a 49 per cent stake in the Northern Gateway Master Trust that it valued at $17m.

MinRes has consistently rejected suggestions the acquisition of a stake in the land package last May should have been disclosed as a related party transaction.

Chair James McClements told the annual general meeting last November that the Northern Gateway “arrangement” was under review.

“Another arrangement under review is the Northern Gateway Master Trust (NGMT) in which MinRes is a 49 per cent unitholder and where a consortium led by Chris (Mr Ellison) owns the remaining 51 per cent of the units,” he said.

“The acquisition of units in the NGMT was not a related party transaction. MinRes acquired its stake from Goldman Sachs at market rates, supported by an independent valuation.”

It is understood the Ellisons own about 70 per cent of Northern Gateway Investments, the entity that holds the 51 per cent share, and that two former MinRes directors also hold interests.

In a statement to The Australian, MinRes confirmed the Northern Gateway Master Trust had put the land package, which covers parts of Muchea and Bullsbrook, up for sale.

“Post-sale of the land, the intention is for the proceeds to be distributed to Northern Gateway Master Trust unitholders and for the trust to then be wound up.

“As previously announced, MinRes has a strategic long-term requirement for logistics, distribution and workshop facilities north of Perth.

“Short-listed parties will have the opportunity to discuss with MinRes a potential development opportunity covering approximately 20 hectares at the Bullsbrook Industrial Estate.”

Defending the MinRes acquisition in February, Mr Ellison suggested the company had outgrown warehouses and other facilities south of Perth.

“We’ve been looking out there for about four years trying to get industrial land,” he said in response to a question about the deal.

“Currently we pull out of the southern half using single trailer (trucks), and then we form road trains in the north. It costs an enormous amount of money. We looked high and low for other blocks for about three years. Couldn’t be found. I hope to be able to report back to you in less than 12 months and say ‘MinRes has got 30 hectares of land, all at no cost’.”

Mr Ellison co-founded and owns 11.5 per cent of MinRes, which recently tried to squash investor anxiety around a potential capital raising. He is selling a luxury yacht and late last year put one of his luxury Perth properties on the market. Meanwhile, MinRes is understood to have shopped around its stake in the Wodgina lithium mine.