Embattled mining billionaire Chris Ellison has told shareholders he can’t stress enough “how much I hate what I’ve done” after a series of scandals engulfed the company he leads, Mineral Resources.
The Perth businessman has previously acknowledged he failed to disclose revenue generated by overseas entities to tax authorities earlier in his career. A company investigation later found he had also used business resources for his personal benefit.
In the fallout, the MinRes chief executive announced he would step down from the company he founded within 18 months, while company chair, James McClements, would leave before next year’s general meeting.
Ellison told shareholders on Thursday he had made an “error in judgment”.
“I deeply regret the impact this has had on the business and our people,” Ellison said at the company’s annual general meeting in Perth.
“I can’t stress enough how much I hate what I’ve done; a dark cloud in my life that I’ll live with for ever.”
MinRes shares have been under extreme pressure in recent weeks in the aftermath of the tax revelations, first made public by the Australian Financial Review.
The share price has halved this year due to a combination of weak commodity prices and a sell-off triggered by the governance issues.
In response, shareholders voted down the company’s executive pay plans on Thursday, with more than 65.6m votes cast against the remuneration report, compared to 21.3m in favour.
The result represents a first strike against executive pay, which could result in a board spill if shareholders replicate the result next year.
While some shareholders expressed support for Ellison at the meeting, many also questioned the board’s decision not to make investors aware of the governance matters prior to the media reports.
“We were not in a position to disclose information because it was subject to ongoing inquiries,” McClements said.
Ellison has previously said that he and his business partners operated overseas entities to buy mining equipment to import and sell in Australia before the company’s listing in 2006.
Some of that machinery was sold to MinRes.
The mining boss, who apologised for not disclosing the revenue to authorities at the time, went on to inform the ATO of the matters in 2021, with all outstanding tax, penalties and interest now repaid.
“I own those mistakes, and I’m standing here, I take full responsibility for them,” Ellison said on Thursday.
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.
The company, which started in mining services, has gone on to become a major mining and infrastructure business with a large portfolio of iron ore and lithium assets.
