Last week the industry and science minister Ed Husic stood in front of Australia’s tech titans at the National Tech Summit, telling them the $15 billion National Reconstruction Fund was about to announce its first investments.
Today Husic delivered on the promise, announcing $40 million for a manufacturer in Queensland.
The funds went to Toowoomba-based Russell Mineral Equipment (RME) for its domestic manufacturing capabilities supplying the mining and resources industry for minerals processing.
RME chief engineer Dr John Russell founded the business in 1985 and it now exports to more than 60 countries, employing around 450 people globally.
“This investment will protect RME’s future, honouring the growth and potential of the company, while also ensuring it remains an Australian-owned and operated company based in Queensland,” he said.
“Furthermore, the investment strengthens RME’s position as the world’s most trusted original equipment manufacturer of mill relining technologies and Australia’s leadership in the manufacturing of advanced mining technology.”
Russell described the deal as a “transitional sale agreement”.
“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 said.
Husic’s announcement portrayed RME’s mill relining technologies as part of the global transition to clean energy generation and storage because their used for copper, gold, platinum, nickel, zinc and iron ore.
He also focused on jobs, jobs, jobs.
“The NRFC has stumped up vital capital to ensure RME stays in Toowoomba in Aussie hands employing hundreds of Queensland workers,” Husic said.
“The Albanese government believes Australia should be a country that makes things – the NRFC is playing a vital part, backing the growth of Australia’s manufacturing capabilities.”
This deal is part of a broader $100 million co-investment partnership between the NRFC and Resource Capital Funds (RCF).
Andrew Jessett, head of RCF Innovation, said: “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.”
The NRFC’s investment will be allocated to supporting other innovative Australian companies which support the resources sector while meeting the fund’s Iinvestment mandate.
The fund’s seven priority investment areas are: renewables and low emissions technologies; medical science; transport; value-add in the agriculture, forestry and fisheries sectors; value-add in resources; defence capability; and enabling capabilities.
NRFC chair Martijn Wilder said RME’s products boost productivity and enhance safety.
“We are incredibly proud to support RME’s growth and help it take its pioneering technology to new heights,” he said.
“The combination of RCF’s investment experience, NRFC funding, and RME’s high performance team and culture provides the security to ensure RME can reach its fullest potential, more quickly, as the world strives for a net zero future.”
But not everyone is impressed with the fund’s opening gambit, with Conry Tech CEO Sam Ringwaldt saying supporting the mining sector in this way was like giving “healthcare grants to tobacco firms”, launching a broadside at the decision.
“I didn’t think I could be more disappointed with the NRF than I was already,” he said.
“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.”
Ringwaldt’s cofounded Melbourne-based Conry Tech to re-invent air-conditioning.
Cofounder Ron Conroy was a finalist in the Best Technical Leader category of the 2023 Startup Daily Best in Tech Awards.
His cofounder said the decision “is also taking money away from worthy businesses and startups” offering genuine innovation and sustainable solutions.
“You could argue that this is not a business that needs government intervention and taxpayer money,” Ringwaldt said.
“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 tax payers footing the bill?
“The government should be backing small businesses that are too high risk for VCs 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.”
Last week Husic said the NRFC “has been methodical and rigorous in the way it has gone about assessing the hundreds of proposals it received,” hinting that $300 million was about to be doled out.
With another $260 million worth of announcements pending, Ringwaldt said: “there is still hope that the NRF can make good on its stated aims”.
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