Mount Gibson Iron has found a novel way of dealing with Foreign Investment Review Board concerns about its Chinese-controlled board, opting to reclassify one of its serving directors as independent.

The Mid West iron ore miner said former APAC Resources director Alan Jones could be classified as independent because he had not worked for the Chinese firm since 2009 and was no longer linked to APAC via a separate directorship at Allied Gold.

The decision was made by the Mount Gibson board, which has been controlled by APAC and Shougang Corp for the past 12 months. The Chinese groups hold a combined 40 per cent stake and are also key customers.

It is unclear if any directors opposed the vote on Mr Jones.

With Mr Jones and chairman Geoffrey Hill regarded as independent - director Craig Redhead, outgoing managing director Luke Tonkin and former director Ian Macliver opposed Mr Hill's appointment, arguing he was not independent - Mount Gibson can claim to have a majority of independent directors on its board.

Mount Gibson has also announced a shake-up of its audit and risk and remuneration and governance committees. Its shares recovered 3¢ to $1.24.

Source:News.yahoo