Mineral Resources Ltd (ASX: MIN) shares are on fire today.
The ASX mining stock is presently enjoying a 10.6% jump to $25.24 a share at the time of writing, well ahead of the gains of the broader S&P/ASX 200 Index (ASX: XJO).
This big gain comes despite some negative news from an Australian superannuation fund regarding Mineral Resources shares.
The healthcare-aligned super fund Hesta has just announced that it has sold its remaining stake in Mineral Resources.
Super funds are increasingly important players on the ASX, thanks to the ever-increasing ocean of cash they have to deploy into the stock market.
With 11.5% (soon to be 12%) of almost every worker's salaries flowing into superannuation every week, the sector has never had more clout on the stock exchange boards.
As such, Mineral Resources might not be too pleased by the announcement from Hesta yesterday.
Why has Hesta sold Mineral Resources shares?
According to a press release from Hesta, the fund has sold its remaining shares in Mineral Resources "due to concerns the company may be unable to make the changes we believe necessary to restore investor confidence".
The fund points to the "news of the sudden resignations of three directors in April, who together formed the ethics and governance committee that was established in November 2024" as a primary catalyst for its decision.
Hesta first flagged concerns over holding Mineral Resources shares back in October last year. This was reportedly done "based on the view appropriate action was not being taken to address governance issues".
Evidently, Hesta's concerns have not been assuaged. In yesterday's statement, the fund told members that "future re-inclusion of MinRes shares in HESTA's portfolio would be contingent on there being a 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".
That last line is a clear reference to the controversy surrounding managing director Chris Ellison. Ellison was embroiled in a tax and expenses brouhaha last year. He has previously indicated he plans to step down by mid-2027.
Here's what Hesta CEO Debby Blakey had to say on yesterday's announcement:
Last year we outlined our concerns that the Managing Director's succession timeframe did not reflect the seriousness of the issues, and the issues indicated a systemic failure of governance. We have since regularly engaged with senior leaders and directors at the business to encourage action we believe necessary to restore investor confidence.
The departures of the directors on the ethics and governance committee last month in our view represented a significant step backwards in seeking to address the serious governance concerns. Given these departures and the forthcoming succession of the Chair, we don't currently see a path to our concerns being addressed.
We are focused on the delivery of strong long-term returns to our members, and believe selling our remaining holdings was in their best interests at this time. We may reconsider our position if circumstances change.
Although Hesta has now divested its Mineral Resources shares, it has told members that "a watching brief on the company will be maintained".
Despite today's gains, Mineral Resources shares remain down by almost 67% over the past 12 months.
