Mineral Resources executives purchased discounted equipment amid tax probe

Mineral Resources (ASX:MIN) founder and managing director Chris Ellison, along with former director Tim Roberts, purchased mining equipment from the company's subsidiary at steep discounts for their New Zealand estate.

The two executives acquired heavy machinery in 2017 for their luxury Halfway Bay Station at rates significantly below market value.

An invoice addressed to Halfway Bay Station listed 13 items, including tractors, excavators, and generators, for a total of $343,000.

Comparisons with current market prices show that similar equipment would cost at least three times that amount today.

For instance, a Caterpillar bulldozer sold for $56,000, but a comparable model is now worth more than five times that figure.

The sale, approved by then-chairman Peter Wade, has surfaced amid investigations into alleged tax evasion involving Ellison.

The Australian Securities and Investments Commission and external counsel are examining an offshore scheme where executives, including Ellison, allegedly profited $7 million between 2006 and 2009 by inflating machinery sales through a British Virgin Islands company.

MinRes chairman James McClements has downplayed concerns, calling the sales a private matter and stating the contracts predated the company’s public listing.

However, the issue continues to draw scrutiny as Roberts denied purchasing equipment below market value, insisting no discounts were requested.

Ellison and Roberts co-owned the 18,000-hectare Halfway Bay Station, which they bought in 2016. The property was sold for $NZ30 million ($27 million) in 2022.