Original equipment manufacturer of minerals grinding mill relining technologies Russell Mineral Equipment has entered into a transitional sale agreement with Resource Capital Funds (RCF) and the Australian Government’s National Reconstruction Fund Corporation (NRFC).
The NRFC has now made its first investment of $40 million in RME. The deal is part of a broader $100 million investment partnership with RCF, a mining-focused private equity firm that invests in innovative companies making mining safer, cleaner, and more efficient.
RME founder, Executive Chairman, and Chief Engineer Dr John Russell says the investment from NRFC and RCF will protect Russell Mineral Equipment’s future, honouring the growth and potential of the company, while also ensuring it remains an Australian-owned and operated company.
“The transitional sale agreement we have entered into with RCF and NRFC will strengthen RME’s future, helping it to live in perpetuity, honour the growth and potential of the company, secure skilled jobs in regional Australia, and finally, will ensure we remain Australian-owned and operated from Queensland,” he says.
Queensland-based RME is a global company focused on grinding mill relining machinery technology. Its development of revolutionary technology enables the resources industry to boost speed, efficiency and safety of an essential maintenance activity.
RCF’s ‘innovation’ strategy invests in emerging technologies and innovations that aim to redefine the mining industry to help sustainably and efficiently meet the demand for critical minerals and resources required for the global energy transition.
The NRFC’s $40 million investment supports the continued growth of RME’s domestic manufacturing capabilities, allowing it to optimise operations at its manufacturing facility in Toowoomba.
The NRFC’s investment will be allocated to supporting other innovative Australian companies which support the resources sector that meet the NRFC’s investment mandate.
NRFC Chief Investment Officer Dr Mary Manning says the partnership with RCF is a critical part of the NRFC delivering on its mandate to attract private investment into Australian advanced manufacturing and value-adding in resources, as well as enabling technologies in the national interest.
Manning says the NRFC is committed to “crowding-in private capital to diversify and transform Australian industry”.
“Our partnership with Resource Capital Funds underscores our strategic focus to work with private capital with sector expertise to unlock new opportunities for growth in high-value and high-tech Australian manufacturing. We look forward to continuing our relationship with RCF as we jointly pursue further investments in the Australian resources innovation sector,” Manning adds.
NRFC Chair Martijn Wilder says the investment in RME represents a first step for the NRFC in backing Australian manufacturers.
“RME’s cutting-edge solutions not only boost productivity but also enhance safety. We are incredibly proud to support RME’s growth and help it take its pioneering technology to new heights,” he says.
Wilder adds that the NRFC is building a strong pipeline of investments through partnerships, co-investment and direct engagement and it has several investments moving towards completion across its priority areas.
RME’s founder John Russell notes that Andrew Jessett of Resource Capital Funds is well-known to RME having been an advisor to RME’s board since 2019.
“The agreement we have entered into is an important milestone for RME. Since 1985, RME has innovated mill relining technologies and services in the pursuit of removing fatal risk and improving our customers’ productivity,” Russell says.
“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.
“The remarkable combination of RME’s propriety, industry-leading inventions, our strong team, healthy balance sheet and pipeline of opportunities, as well as an enviable group of Customers and suppliers, make RME an attractive investment.
“I am a proud Australian and creating opportunities for Australians was one of my primary goals in founding RME, so as I considered succession for my company RME, the possibility of an investment from the Australian Government’s National Reconstruction Fund Corporation was immediately attractive.”
Jessett, who is head of RCF innovation, says the energy transition, ESG requirements and the declining quality of mineral reserves are forcing the mining industry to transform.
“RCF Innovation is dedicated to making mining safer, cleaner and more efficient. We are pleased to be working with the NRFC to support innovative companies in Australia with the potential to benefit the global mining industry,” he adds.
The NRFC invests to diversify and transform Australia’s industry and economy. It has $15 billion to invest using direct loans, equity investments and loan guarantees.
It can invest in seven priority areas including value-add in resources; transport; medical science; defence capability; renewables and low emission technologies; value-add in agriculture, forestry and fisheries; and enabling capabilities.
The NRFC’s role is to invest in Australian businesses and projects that design, refine and make to transform capability, grow jobs and a skilled workforce, and diversify our economy.
Established by Dr John Russell in 1985, RME’s technologies deliver short shutdowns, high mill availability and safe working environments. It has grown to operate in 64 countries, has 13 international sales and service centres, and employs more than 450 people worldwide.
Write to Adam Orlando at Mining.com.au
Images: RME
