Chris Ellison scandal spreads to New Zealand as trade office mulls Kiwi diplomat’s future

Mineral Resources boss Chris Ellison has gone back to work as the New Zealand government confirms it is reviewing damning misconduct findings against the mining billionaire that could have repercussions for his role as the chief Kiwi diplomat in WA.

Mr Ellison was seen arriving at the mining company’s plush headquarters in Osborne Park on Tuesday, just 24 hours after an internal probe revealed the managing director and number one shareholder had “used company resources for his personal benefit”.

He arrived in a gold-tinted BMW four-wheel drive to face the fallout of the explosive report that has sent shockwaves through MinRes.

The findings tabled by the board on Monday revealed “at times Mr Ellison has not acted with integrity” and he “failed to be as forthcoming with the board as he should have been”.

Amid the carnage, the company’s stock staged a minor share price comeback to $38.37, up 4.5 per cent. It had lost nearly 10 per cent on Monday after the findings were released, as the market digested news of governance failings and the looming exit of Mr Ellison.

He will step down within 18 months and pay a multimillion-dollar fine to the mining and services company.

But the consequences for Mr Ellison could spread beyond his role at MinRes.

A spokesperson for the New Zealand Ministry of Foreign Affairs and Trade — the office which oversees Mr Ellison’s diplomatic posting as NZ honorary consul for WA — confirmed to The West Australian it was taking MinRes’ findings into the billionaire’s affairs on board.

“MFAT is aware of the findings of the external investigation. We are considering those findings and have no further comment to make at this stage.”

Mr Ellison was appointed to the post in July 2013. He received a Member of the New Zealand Order of Merit in the 2022 Queen’s Birthday Honours for “services to New Zealand–Australia relations”.

The Australian Securities and Investments Commission has also taken an active interest in the matters involving Mr Ellison, with a preliminary focus on any potential breaches of directors’ duties or MinRes’ disclosure obligations.

Mr Ellison’s role as an honorary consul would not give him diplomatic immunity from a potential ASIC prosecution.

According to the Australian Government, honorary consuls are not immune from regulatory investigations “except in respect of acts performed while exercising consular functions”.

Despite the share price rebound, shareholders are divided over what a MinRes without Mr Ellison at the helm could looks like, and whether the penalties imposed on him and the flagged resignation of MinRes chair James McClements go far enough.

MinRes’ second-largest shareholder — US funds management goliath State Street Global Advisors — declined to reveal its stance on Mr Ellison’s future.

But the company’s number three shareholder — Australian hedge fund L1 Capital — has publicly backed him.

“L1 Capital is supportive of Chris Ellison remaining as CEO with a more appropriate corporate governance structure in place,” said L1 joint managing director Raphael Lamm.

AustralianSuper — MinRes’ eighth-biggest shareholder and the nation’s largest superannuation fund — supports the board’s initial response to the failings but said there was still “significant work to be done to lift governance standards” at the business.

“The independent review into Mineral Resources outlined a series of clear and very disappointing governance failings at the company,” a spokesman said.

“The decision taken by chair James McClements to step down and for a new chair to be appointed in the near term is a positive step by Mr McClements and the board.”