The Mineral Resources Ltd (ASX: MIN) share price is in focus after the mining company gave an update about its investigation process.
Mineral Resources has been investigating issues related to its Managing Director Chris Ellison.
Mineral Resources investigation update
The company acknowledged that it has been the subject of ongoing reporting about Chris Ellison and other matters. It said it fully recognised “the requirement to respond appropriately from a governance and process perspective.”
It said it has received questions from the ASX, and would publish those responses soon, but it has not by the time of this article’s publication.
In addition, the board intends to issue an announcement to the market about the conclusions it has reached and the actions it will take by Monday, 4 November 2024.
Ellison is “continuing to co-operate with the investigation while taking planned leave”. He is scheduled to return in November 2024.
International law firm Herbert Smith Freehills has been engaged for some time to assist the board and investigate allegations about Ellison that have “emerged over time”.
In addition, senior counsel and McGrath Nicol have been retained to provide input on this process. This work has been “carried out independently of the Managing Director”.
The Mineral Resources board said it takes the allegations seriously. It also said there has been “considerable media coverage since 19 October 2024 and the board’s investigation has evolved to respond to statements that do not accord with the company’s understanding of the facts.” The company is “working to resolve these inconsistencies, recognising that some of the reported matters date back to before the company’s formation and ASX listing in 2006.”
Leadership comments
The Mineral Resources Chair James McClements said:
The Board’s response is driven by high governance principles and the best interests of MinRes shareholders, now and in the long term.
We are determined to ensure that this is the path for MinRes long into the future and we understand our role as a Board is to strike the appropriate balance of all factors so this is delivered for our investors.
At the same time, it remains focused on generating sustainable value for its shareholders, working in partnership with its clients, customers, people and communities.
There has been significant board renewal in the past two years and the Board today comprises directors who individually and collectively have an unswerving commitment to strong governance and are committed to continuous review and improvement.
Final thoughts on the Mineral Resources share price
Time will tell how this plays out for Mineral Resources, the board and Chris Ellison.
The company may be a beaten-up opportunity, but this isn’t the sort of situation I’d want to be investing in the ASX mining share.
