Australian Mining Tycoon Chris Ellison To Resign Amid Probe Into Undeclared Payments

Chris Ellison, founder of Mineral Resources Ltd., will step down as managing director following an internal probe that uncovered undisclosed payments benefiting him financially, which the company deemed "profoundly disappointing," Paul Alain-Hunt and Georgina McKay reported for Bloomberg News.

As a consequence of the probe, Ellison was fined A$8.8 million and will forfeit up to A$9.6 million in salary and other incentives. I Photo: Mineral Resources

News of Ellison's conduct caused Mineral Resources' market value to drop by A$800 million ($528 million).

As a consequence of the probe, Ellison was fined A$8.8 million and will forfeit up to A$9.6 million in salary and other incentives. He will remain in his role until a successor is appointed within 18 months. The slow pace of his departure has drawn criticism, with Citigroup analyst Kate McCutcheon suggesting it may further weigh on the stock.