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Australia’s National Reconstruction Fund will invest A$40 million ($26 million) to boost mining equipment manufacturing in the state of Queensland, the billion-dollar vehicle’s first investment since being set up by the Labor government in 2023.
The independent fund will invest in Queensland-based Russell Mineral Equipment (RME) as part of a joint A$100 million co-investment partnership with Resource Capital Funds, National Reconstruction Fund Corp. chair Martijn Wilder announced on Monday.
RME will receive the funds as part of the government’s push to value-add to the mining supply chain in Australia. The company develops liners for crushing plants, or mills, on mine sites.
“Our investment in RME represents a first step for the NRFC in backing leading Australian manufacturers,” Wilder said in a statement. “RME’s cutting-edge solutions not only boost productivity but also enhance safety.”
The A$15 billion investment fund was a key promise of the center-left Labor party ahead of their 2022 election win, part of a pledge by Prime Minister Anthony Albanese to boost domestic manufacturing and bulk up supply chains in the wake of the Covid-19 pandemic. With Australia facing a national election due by May 2025, Monday’s announcement is the first allocation of funds decided by the corporation.
There would be further announcements regarding investments made by the fund in “coming weeks and months,” Wilder told reporters on Tuesday. “We’re in an area that is in Australia — innovation and manufacturing — where traditional investors don’t really want to go.”
(By Ben Westcott)
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