Resource Capital Funds (RCF) has completed the acquisition of mill relining systems original equipment manufacturer Russell Mineral Equipment (RME) following a sale agreement on 16 November 2024.
With the deal completed, the investment in Russell Mineral Equipment will enable a number of priority areas, including accelerating the deployment of RME’s advanced technology system.
The investment results in RCF becoming Russell Mineral Equipment’s majority shareholder. The transaction also includes investment from Australian sovereign manufacturing investment fund the National Reconstruction Fund Corporation (NRFC).
As reported by Mining.com.au, the NRFC had in late 2024 made its first investment of $40 million in RME as part of a broader $100 million investment partnership with mining-focused private equity firm RCF.
Following the change in Russell Mineral Equipment’s majority ownership, Head of RCF Innovation Andrew Jessett and RCF Innovation Partner Lyle Bruce have now joined the board.
Jessett describes the investment as an opportunity to accelerate Russell Mineral Equipment’s pathway from research and development to commercialisation. He says RCF’s investment will bolster Russell Mineral Equipment’s culture of engineering innovation, including continual process and product improvements, new product development and blue-sky projects.
“We are particularly excited to build our manufacturing capacity to meet the increasing market demand for the RME Advanced Technology Mill Relining System. Faster market access to our advanced technology will deliver significant additional safety and commercial outcomes for our customers and the wider industry, sooner,” Jessett adds.
“We will also be expanding our capacity in site service and optimisation with additional highly skilled and trained RME capability made available across the planet to support customers, as well as a range of complementary offerings for customers.
“Our number one priority remains the delivery of exceptional products and services to our Customers. More world-class RME capability, more pilot projects and more physical space will provide continuity and security for our customers as we continue to strive to raise the bar, delivering to the highest standards.”
NRFC Chief Executive Officer David Gall the transaction represents a positive step for RME and a strong example of the advanced, Australian-made capabilities that are driving innovation and productivity across the manufacturing landscape.
Founder and Director Dr John Russell describes the investment in the company as the next step to realising his ambition to honour the growth and ongoing potential of the company by actively pursuing succession plans.
“I didn’t build RME with the intention of selling it but at this stage in my life, it was important and responsible that I actively pursue succession plans for the company that I love, to strengthen its future, our people’s careers and the customers we serve and keep safe every day,” he says.
“RME entered into the transitional sale agreement following a period of stability and strength to ensure the company would continue to strengthen, in perpetuity.”
Established in 1985, RME has grown to support customer operations across more than 440 mine sites and 64 countries, has 13 global sales and service centres and employs more than 450 people worldwide.
The company last year won the inaugural Mining.com.au Masters of Mining ‘Excellence in Safety Shield’. The shield recognises a company, individual, or program that is committed to ensuring safety, removing risks, or reducing potential worker harm on a project or mine.
The company must have a clean historic record for workplace health, and safety. Individuals must have been involved in a safety function or be clearly advocating for safety for 12 months or longer prior to the nominations’ closing date.
The NRFC is a corporate Commonwealth entity and invests to diversify and transform Australia’s industry and economy. It has $15 billion to invest using direct loans, equity investments and loan guarantees.
RCF believes metals and mining are essential for the energy transition, supporting industrialisation worldwide and serving as the bedrock for the future of human civilisation and advancement, driving growth and innovation in a rapidly evolving landscape.
Write to Adam Orlando at Mining.com.au
Images: RME
