Mineral Resources has conceded its processes to manage related party transactions “were not as good as they could have been” after revealing the miner provided rent relief to corporate entities linked to the daughter of its embattled chief executive, Chris Ellison.
MinRes said in an ASX notice late on Thursday that it had now cancelled the rent subsidies and required the repayment of $158,000 from the companies.
The miner and services provider conceded that the rent relief arrangements, which ran from 2012 to 2023, should have been disclosed to shareholders at the time.
Ellison’s daughter Kristy-Lee Craker has interests in various marine agencies that provide shipping services to MinRes. The companies were contacted for comment.
The fresh disclosures have been made amid a tumultuous period for the company and its founding chief executive, who has agreed to step down within 18 months after MinRes found that Ellison had at times used company resources for his personal benefit.
This included directing company employees to work on his boat and properties, directing a company employee to manage his personal finances and using the company to procure goods and services for his private use.
The findings stem from an investigation MinRes ordered into its founder over various allegations including Ellison’s decision not to disclose revenue generated by overseas entities to tax authorities before the company was listed – an issue for which the mining magnate has apologised.
Ellison said earlier this month that he was “deeply sorry for the events that have occurred and the impact they have had on MinRes’ reputation”.
According to the new shareholder statement, MinRes provided $30.19m in rental payments to entities related to Ellison since 2006 which were used for MinRes operations.
The company said these details had been disclosed in financial statements and it has not sought repayment, as it had done with the entities linked to Ellison’s daughter.
MinRes said that it had worked to improve the controls on related party transactions.
“The board acknowledges that the historical processes in place at [MinRes] to manage related party transactions were not as robust as they could have been,” the company said.
Ellison is a prominent businessman who set a property price record in 2009 after paying $57.5m for a Perth home on the Swan River. At the time it was the most expensive house sale recorded in Australia.
He recently made headlines for his strident criticism of flexible work arrangements that extended to wanting to keep workers from stepping out of the office during the day.
“I want to hold them captive all day long,” Ellison said during a financial presentation in August.
“I don’t want them leaving the building … I don’t want them walking down the road for a cup of coffee. We kind of figured out a few years ago how much that cost.”
While the company has published its plans for an “orderly transition” to replace Ellison, it was still expected to face a lively annual general meeting next week amid enduring share price pressure caused by the revelations.
The companies that Ellison’s daughter has an interest in and that received rent relief, Ship Agency Services and Propel Marine, were contacted for comment.
There are no allegations of wrongdoing against Craker or the companies.
