Mr Bundey’s appointment as MinRes chair was announced on Monday. It comes with MinRes trying to restore its depleted board, while it is under investigation by the Australian Securities & Investments Commission.
The billionaire Mr Millner, whose Brickworks counts Mr Bundey as deputy chair, said his colleague was a no-nonsense character up to the task.
“He’s a good man. He a straight shooter and he’s good at solving problems. So, hopefully he can turn it around for them,” Mr Millner said.
Mr Bundey spent much of his executive career working for New Zealand’s richest man, Graeme Hart, at Rank Group. He has more recently been an adviser to portfolio companies for international private equity firm Oaktree Capital Management.
Mr Ellison made his fortune and co-founded MinRes after moving to WA from New Zealand, and is understood to have already met Mr Bundey to discuss the challenges he faces as the new chair.
Mr Bundey said MinRes was built on the “entrepreneurial and proactive culture” which had attracted him to every senior role in his career.
“I look forward to addressing the challenges before us, which we’ll approach head-on. I’m confident the new board will lead the company through the next chapter, continuing to strengthen the company’s corporate governance while focusing on a collegiate and success-driven culture in the boardroom,” he said.
Mr Bundey will succeed James McClements, who along with the rest of the MinRes board, came under fire over inadequate governance and disclosure standards following revelations Mr Ellison was involved in a tax evasion scheme.
MinRes has taken a punt on Mr Bundey despite his lack of experience in the mining industry. While at Rank, he was chief executive of US-based Graham Packaging, Closure Systems International and Evergreen Packaging. He is also a former chief financial officer at agriculture and food manufacturer Goodman Fielder.
MinRes said its board unanimously endorsed Mr Bundey as its preferred candidate on April 10.
Independent directors Jacqueline McGill and Susie Corlett quit six days later and Denise McComish followed them out the door at the end of April.
Mr Bundey will chair the board’s ethics and governance committee which all three women were formerly part of, and lead the board renewal process. He will join on July 1.
MinRes said Mr Bundey was recruited over several months, including visiting the company’s Onslow Iron project in WA’s Pilbara, before agreeing to take on the chair’s role.
It is understood he has met the some of company’s notable shareholders including L1 Capital and OC Funds Management.
“Mr Bundey is committed to dedicating a substantial amount of time to the role and will be actively engaging with shareholders and working with management and board colleagues to ensure a seamless transition into the chair role,” MinRes said.
“At the same time, he will remain focused on continuing to address the company’s challenges, including further strengthening corporate governance.”
Industry superannuation fund Hesta last weeksold its remaining sharesin MinRes and cast doubt on the company’s capacity to clean up its act.
The MinRes board is capped at nine members and there will be three vacancies once Mr McClements departs.
The company has flagged a review of its board capabilities as part of Mr Bundey’s appointment.
The six current board members include former cricketer Justin Langer, businesswoman Xi Xi, indigenous leader and former public servant Colleen Hayward and Zimi Meka, founder of the Ausenco engineering business sold by Mr Clements’ Resource Capital Funds for $US578m in 2023.
Mr Bundey will be receive $750,000 per year, with half paid in cash and the balance in MinRes shares. The company has also proposed granting him 780,000 share options in three tranches out to 2028 which can be exercised at $25.40 apiece.
“I’m committed to putting in the hours and working as hard as it requires to restore shareholder confidence and value,” Mr Bundey said.
The Australian revealed last week MinRes isselling a controversial land packagein a deal with the potential to reap tens of millions of dollars for the company and, separately, for Mr Ellison.
MinRes has put a 307ha land package north of Perth on the market and exit one of the related party arrangements which have stirred governance discontent.
The sale of the industrial-zoned land, being marketed by CBRE, is expected to reap somewhere between $100m and $150m as MinRes teeters under a $5.4bn net debt pile.
The list of tasks confronting Mr Bundey and a revamped board includes finding a chief executive to replace Mr Ellison, who has given an undertaking to depart sometime before April next year.
Hesta said any return of the stock to its portfolio would be contingent on “demonstrated pathway to address our serious governance concerns, an effective mechanism to prevent similar issues occurring in future, and a timely and orderly succession of the managing director”.
