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## PRINCIPLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATION 

On listing in 2006, the Group’s senior management ranks were heavily populated with shareholders who held significant numbers of MIN shares. These shareholdings provided an incentive to link corporate performance and shareholder value. While senior managers involved at the Group’s listing continue to serve the business, new senior managers recruited to assist with growth and development of the Group do not have such significant shareholdings. The Board, in designing the remuneration system, is mindful of these varying circumstances and has attempted to create a system that aligns performance with the improvement of shareholder value, suiting the varying circumstances of senior managers. 

The objective of the Group’s compensation framework is to ensure reward for performance is market competitive and appropriate for the results delivered. The framework aligns compensation with the achievement of strategic objectives, operational performance and the creation of shareholder value, and is structured to provide an appropriate mix between short and long term rewards. The Board ensures that compensation satisfies the following key elements for good governance: 

• competitiveness and reasonableness, 

• alignment to shareholders’ interests, 

• performance linkage / alignment of executive compensation, 

• transparency. 

The Remuneration Committee is responsible for determining and reviewing remuneration arrangements for directors and other KMP. As the Group’s performance depends on the quality of its directors and executives, the remuneration philosophy is designed to assist, to attract, motivate and retain high performance and high quality personnel. 

## COMPETITIVENESS AND REASONABLENESS: 

• The Remuneration Committee has structured an executive remuneration framework that is market competitive and complementary to the Group’s reward strategy. 

• Committee members have evaluated the market competitive frameworks used by other ASX 100 companies, supported by a detailed market review this financial year, and crafted the compensation framework to reflect both current market practice and MRL’s particular requirements. 

A summary of the Group’s KMP remuneration policy is as follows: 

<img src='content_image/170461.jpg'>

## Fixed Remuneration 

Fixed Remuneration consists of base salary, superannuation and non-monetary benefits. This is reviewed annually by the Remuneration Committee, based on general economic conditions, individual and business performance, and comparable market remuneration. 

KMP may receive their fixed remuneration in the form of cash or other fringe benefits (for example motor vehicle benefits) where it does not create any additional costs to the Group and provides additional value to the executive. 

<img src='content_image/170462.jpg'>

