Column: Electric dreams turn into a nightmare for battery metals
A sector that was once racing to build new supply has been closing mines and deferring projects as low prices bite into the cost curve.
Australian superannuation fund HESTA said on Friday it has placed Mineral Resources on its watchlist, citing disappointment with the company’s inadequate response to governance issues involving billionaire founder Chris Ellison.
Earlier this week, the diversified miner said its founder and managing director, Chris Ellison, would exit the company within 18 months after an internal probe found him guilty of evading taxes and using company resources for his personal benefit.
“Our concerns include that the managing director’s succession timeframe does not reflect the seriousness of the issues and that the issues identified indicate a systemic failure of governance at the senior management and board level,” HESTA said in a statement.
As of Oct. 24, HESTA’s portfolio exposure to MinRes stood at 0.83%, the fund confirmed to Reuters earlier this week.
HESTA said it subjects watchlisted companies to increased monitoring and direct engagement, with an escalation framework that may involve voting against directors, supporting or filing shareholder resolutions and potentially divesting.
These measures are enacted when HESTA finds insufficient progress in risk mitigation and deems such actions to be in the best financial interests of its members.
“Alongside MinRes, Woodside and Santos remain HESTA watchlist companies,” it said.
(By Sherin Sunny; Editing by Alan Barona)
Comments
Adam West
It’s everyone’s duty to avoid and evade taxation. Taxation in this country is not a fair share and the revenue taken in is mostly wasted.. super funds are also a problem