Conry Tech CEO Sam Ringwaldt has taken a swipe at the National Reconstruction Fund’s recently announced first contract, which he says is “taking money away from worthy businesses and startups”.
Ringwaldt is critical of the Australian Government’s National Reconstruction Fund Corporation (NRFC) and Resource Capital Funds (RCF) making its first investment in a well-established and successful company that employs more than 450 people worldwide.
As reported by Mining.com.au on 19 November, the NRFC has now made its first investment of $40 million in original equipment manufacturer of minerals grinding mill relining technologies Russell Mineral Equipment in a deal that is part of a broader $100 million investment partnership with mining-focused private equity firm RCF.
Resource Capital Funds Vice President Andrew Jessett (pictured below) is well-known to RME having been an advisor to the company’s board since 2019.
The NRFC’s $40 million investment will support the continued growth of RME’s domestic manufacturing capabilities, allowing it to optimise operations at its manufacturing facility in Toowoomba.
RME founder Dr John Russell believes the investment from NRFC and RCF will protect the company’s future, honouring the growth and potential of the company, while also ensuring it remains an Australian-owned and operated company, as previously reported by this news service.
While Ringwaldt is a supporter of Australian manufacturing and the idea of the NRF, he believes a large mining services business like Russell Mineral Equipment should never have been awarded taxpayer money.
“I didn’t think I could be more disappointed with the NRF than I was already. Supporting the mining sector is like awarding renewable energy grants to fossil fuel giants and healthcare grants to tobacco firms,” he says.
“In its own words, ‘The NRFC was established to diversify and transform Australia’s industry and economy to secure future prosperity and drive sustainable economic growth.’ By supporting a legacy sector that wilfully depletes Australia’s limited natural resources and pollutes the environment, the NRF is failing spectacularly on every single stated aim.
“It is yet another example of Australia’s dig and ship obsession and an economy built on shipping precious resources to other countries to use and prosper with. I would love to see Australia build things again.”
Russell Mineral Equipment declined to comment. Mining.com.au has also reached out to RCF and the NRFC.
The federal government’s Department of Finance declined to comment with a spokesperson noting “the National Reconstruction Fund Corporation is a Commonwealth corporate entity which makes independent investment decisions”.
Ringwaldt (inset) says NRFC funding would be better served being deployed to startups rather than well-established companies, adding it could be argued that “RME is not a business that needs government intervention and taxpayer money”, he adds.
“It is 40 years old and is one of the leaders in its specialised field. It could easily get private finance, or fund its own projects. Why are taxpayers footing the bill?” Ringwaldt says.
“The government should be backing small businesses that are too high risk for VCs (venture capital firms) or don’t provide a quick return on investment – provided they are building innovative and sustainable products.
“We need EV batteries, heat pumps, solar panels, more efficient refrigeration – not bigger shovels. This is just the first of many NRF contracts. There is still hope that the NRF can make good on its stated aims.”
A recent report authored by Ringwaldt finds that no Australian industry has shrunk more than manufacturing in the past 15 years – with some urgently needed manufacturing occupations declining by 70%. Meanwhile mining industry jobs have doubled.
The NRFC was established on 18 September 2023 to diversify and transform Australia’s industry and economy to secure future prosperity and drive sustainable economic growth. Its investment function, as described in the NRFC Act, is to provide finance in the form of debt, equity, and guarantees for projects in the priority areas of the Australian economy.
The fund’s investment in RME will be allocated to supporting other innovative Australian companies which support the resources sector that meet the NRFC’s investment mandate.
Established in 1985, RME is an award winning mining services firm that has grown to operate in 64 countries, has 12 global sales and service centres and employs more than 450 people worldwide.
In September, the company won the 2024 Queensland Mining Industry Health & Safety Conference (QMIHSC) Innovation Award, which recognises the company for raising safety standards in the mill relining industry, as reported by Mining.com.au.
In an interview that same month, Company Director Cherylyn Russell told this news service RME remains busy and was growing capacity organically with the current competitive landscape for grinding mill relining systems “fair to robust” in a good sign for the industry.
Speaking to Mining.com.au following the win, Russell said as RME approaches its 40th anniversary, the accolade recognises the company for raising safety standards in the mill relining industry.
“Safety is RME’s reason for being – RME was founded in 1985 when our founder John Russell identified a critical industry need to improve the safety of grinding mill relining,” she said at the time.
Conry Tech is a climate tech, green building HVAC innovator founded by “award winning experts in this field who have previously revolutionised the industry and created multiple global companies based on their tech”.
According to the company’s website, its mission is to help drive the clean energy transition, decarbonise air conditioning, enhance comfort, improve indoor air quality and health, and slash energy consumption and CO2 emissions.
Write to Adam Orlando at Mining.com.au
Images: RME, RFC & LinkedIn
