Mining billionaire Chris Ellison says Labor Government should stop meddling with resources powerhouse State

Mineral Resources boss Chris Ellison believes everyone in mining should fret about Federal Labor’s layers of green tape and has fired back against critics of his company.

The outspoken Kiwi native sat down for a rare media interview as his embattled MinRes grapples with its share price being savaged by a combination of nosediving lithium prices, a weakening iron ore market, and a hefty pile of debt on its balance sheet.

But Mr Ellison, who revealed he’s proud to “say it the way it is”, did just that, calling for:

* Federal Labor to “take a lesson from the (WA) Cook Government”;

* Denying he holds his staff “captives”, stating “my people in this building are free to come and go as they like”;

* And backing in Beijing, emphasising that “Australia needs to embrace China” after he was blown away by their technology during a recent trip to Shanghai.

MinRes’ value has more than halved since mid-May and the company has already shed more than 100 office jobs, leading Mr Ellison last month to lament that it is “the sh--tiest time” to be the chief.

He has also faced accusations that the culture within MinRes’ swanky Osborne Park headquarters is rife with issues.

But on Wednesday, these criticisms were fronted head on and the billionaire gave his two cents worth on big issues facing WA’s powerhouse industry.

Get a lesson from Roger

Federal Labor’s industrial relations and environmental reforms have drawn ire from the business sector for emboldening unions and radical eco-groups to infiltrate Australia’s mining landscape and kill off billions of investment dollars.

“I think Anthony Albanese gets WA . . . he’s been here 23 times since he was elected Prime Minister,” Mr Ellison said.

“In terms of IR and environmental-land access, I don’t think they (the Albanese Government more broadly) get that.

“I think that if they have a look at what the Labor Government’s done in WA over here over the last few years — how they manage the State — I think they could take a lesson from the Cook Government.

“I think having another layer of Federal politics is just not needed, not required. I mean, let the Cook Government manage WA.”

The MinRes chief was asked if Environment Minister Tanya Plibersek’s recent controversial decision to overturn approvals for a $1 billion gold mine in New South Wales bodes badly for WA’s mining future.

“The whole industry needs to be concerned about how that’s going to unravel over the next couple of years,” he said.

“I just don’t think we need federal interference, I think that we (WA) can manage what we’re doing.”

Amid BHP’s looming battle with a trio of union groups in the Pilbara Mr Ellison said unions are “necessary”, invoking an experience as a shop steward in his younger days, but said WA’s blue-collar workforce is likely the best paid in the world.

“Trying to hold the highest-paid workforce to ransom is not productive.”

Keeping it in the family

As MinRes’ financial woes have grown, so has the scrutiny on family connections linking Mr Ellison and the company’s business activities.

A prominent corporate governance adviser last month revealed that MinRes strongly encourages its iron ore exporters to use a shipping agent run by Mr Ellison’s daughter and also divulged that some of Mr Ellison’s kids work at MinRes.

But he is unfazed by the prying eyes.

“We’re a public company, we’re open to scrutiny . . . and I need to be held to account, there’s no doubt about that,” he said.

“In terms of employing kids, if you have a look at every public company out there that’s employing their kids there are many.

“In MinRes, we call them ‘next gens’, so I’ve got over 460 children of parents that work for MinRes. If you’ve been here two or three years, you’re guaranteed, if your kid wants to be an apprentice, you’re guaranteed an apprenticeship.”

Not keeping them captive

MinRes could barely keep itself out of the news cycle all of last month, but it was one particular comment that made headlines internationally.

Mr Ellison was quizzed by financial analysts as to why he had spent so much money creating a plush headquarters for his white-collar workforce.

“Why have I done all that? Because when I get them first up in the morning, I want to hold them captive all day long. I don’t want them leaving the building . . . I don’t want them walking down the road for a cup of coffee,” he said on a conference call at the time.

Those words inspired dozens and dozens of stories globally about a billionaire boss wanting to keep his workforce virtually chained to their desks.

“It was laughable,” Mr Ellison said of the media reaction.

“My people in this building are free to come and go as they like, what I was suggesting is, when they come into this office, they don’t want to leave.

“We’ve got probably the best coffee in Perth. We’ve got about seven or eight baristas full time serving a whole range of different coffees and health juices.

“We’ve got a little creche downstairs that looks after about 20 young babies, and we’re building another one next door, so in about a month’s time, we’ll be able to handle about 126 children of parents that work at MinRes.”

Pilbara Killer ‘best friend’ for MinRes

Rio Tinto is set to ship its first iron ore next year from the $34.3b Simandou joint venture in the West African nation of Guinea.

The mammoth Simandou development has been termed the “Pilbara Killer” for its potential to eventually supplant the Pilbara’s mantle as the world’s premier producer of iron ore.

But MinRes’ new Pilbara iron ore crown jewel — the $3b Onslow Iron project — will actually benefit from Simandou coming to life, Mr Ellison says, due to Chinese steelmaker Baowu being a partner in both Onslow and Simandou.

“They (Baowu) are going to take 75 per cent of the Onslow iron ore, and when Simandou comes online, that’s going to be our best friend for MinRes,” he said.

“Because 75 per cent of the Onslow iron ore is going to be blended with Simandou in China. And they just happen to be a perfect mix.”

The iron ore price has lost about $US50 per tonne so far this year, currently sitting at $US92/t, but Mr Ellison says Onslow will still be making a good profit at $US75/t despite what detractors may think.

A $US75/t iron ore price is the WA State Government’s forecast.

Stop China bashing

The anxiety about China getting their hands on Australia’s natural resources is overblown hysteria, according to Mr Ellison.

“Australia needs to embrace China, there’s negative sentiment out there against China — I don’t know why,” he said.

“I think that past governments have been fairly harsh on China, and we paid a price for it. I mean, they banned coal, wine, crayfish, you know, what was the point in that?

“Their technology in China is light years ahead of the rest of the Western World.

“I was up in Shanghai about six months ago, I went through one of the Baowu steel mills, and it would be environmentally head and shoulders above any other steel mill I’ve been in in the US or Europe — unbelievable.”

Forever calling a spade, a spade

MinRes’ conference calls with investors and analysts have become famous for Mr Ellison’s expletive-filled tirades and frank assessments of the company’s strategy — wildly at odds with the vast majority of his CEO peers who tend to be far more reserved publicly and painfully cautious with their choice of words.

“I really like the whole concept of being able to speak the truth and say it the way it is,” he said.

Mr Ellison says “a lot” of other CEOs object to their employees working from home, but unlike him do not express those opinions publicly.

“At least you know what I’m thinking, I’m a walking billboard.”