Australian mining equipment maker RME’s A$100 million (US$65 million) sale to Resource Capital Funds and the country’s National Reconstruction Fund Corporation (NRFC) establishes a new funding path for local mining technology and manufacturing companies.
While 40-year-old RME fits the “mature business” part of NRFC’s investment brief, having built an international profile with its processing mill maintenance equipment, the $15 billion NRFC established in 2023 says it is also prioritising early-stage start-ups and growth-stage companies.
Australian early-stage mining tech companies have been snapped up in their droves by international original equipment manufacturers, tech companies and private equity firms over the past five years.
Viburnum, RCF Ambrian and other local investment firms are focusing on the Australian mining and cleantech sectors with new funds.
NRFC said it’s A$40 million direct investment in RME was part of a “broader $100 million investment partnership” with RCF, its first investment overall.
RME said the “transitional sale agreement” with RCF and NRCF strengthened its position as a manufacturer in Toowoomba, Queensland, where it employs about 300 of its total 450 workforce.
“The agreement with RCF and NRFC will help to ensure that RME lives in perpetuity,” the company said.
Australia’s industry and science minister Ed Husic said the investment would ensure RME stayed in Toowoomba and in Australian ownership permanently.
“In key areas of sovereign capability our country’s got to be able to stand on its own two feet,” the government minister said.
“We’ve got the talented workers in Australian firms, now they need the investment to grow.
“Importantly, too, the NRF is acting as a magnet for private investors to increase growth capital available for Australian manufacturing.”
The mill relining machines pioneered by RME founder John Russell are said to be used at more 440 mines in 64 countries.
