Mineral Resources Ltd placed on HESTA watchlist

A statement from HESTA chief executive, Debby Blakey, has confirmed that mining company, Mineral Resources Limited (MinRes) has been placed on the super fund’s ‘watchlist’.

MinRes joins other energy companies, Woodside and Santos, on the watchlist, which identifies the companies that are subject to “closer direct engagement and monitoring”; following in the wake of several corporate governance issues at both senior management and Board levels that have now resulted in the exit of Founder and Managing Director, Chris Ellison.

HESTA said it had raised the concerns over the company’s “disappointing” response to these governance failures.

“Our concerns include that the Managing Director’s succession timeframe does not reflect the seriousness of the issues,” Blakey said.

“We believe the MinRes Board has a critical opportunity ahead of the company’s upcoming Annual General Meeting to provide investors with confidence they are taking appropriate action to address these governance failures.”

HESTA’s watchlist companies are also subject to the fund’s ‘engagement escalation framework’, which affects voting powers in Director elections and engagement with shareholder resolutions. The framework also takes into account the potential for divestment, where the fund “considers there is inadequate evidence of progress to address risks and it is in members’ best financial interests”.