RUSSELL MINERAL EQUIPMENT (RME) has entered into a transitional sale agreement with Resource Capital Funds (RCF) and the Australian Government’s National Reconstruction Fund Corporation (NRFC). The agreement RME says will strengthen its future, honour the growth and potential of the company, while ensuring it remains an Australian-owned and operated company based in Queensland.
The NRFC is investing A$40 million in the company to support the continued growth of RME’s domestic manufacturing capabilities, allowing it to optimise operations at its manufacturing facility in Toowoomba.
The investment in RME comes via the NRFC’s first strategic investment partnership – a A$100 million commitment to leading resources private equity firm, Resource Capital Fund’s Innovation strategy. 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 investment will be allocated to supporting other innovative Australian companies which support the resources sector, that meet the NRFC’s Investment Mandate. 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.
NRFC Chief Investment Officer Dr Mary Manning: “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.”
NRFC Chair Martijn Wilder AM: “Our investment in RME represents a first step for the NRFC in backing leading 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.”
Since 1985, RME has innovated mill relining technologies and services in the pursuit of removing fatal risk and improving its customers’ productivity. “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,” said Dr John Russell, Founder, Executive Chairman and Chief Engineer, RME.
He added that the remarkable combination of RME’s propriety, industry-leading inventions, a 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 NRFC was immediately attractive.”
The NRFC mandate is to grow Australian manufacturing capability and industry. They invest in Australian projects to transform industry capability, grow jobs and a skilled workforce, and diversify the economy. RCF is a leading mining-focused, global alternative investment firm working at the forefront of sustainable mining investments. With a dedication to making mining safer, cleaner and more efficient, they are aligned with RME’s two-fold purpose and aspiration to improve the human condition through responsible access to metals at lower cost.
Andrew Jessett of RCF is well-known to RME having been an advisor to RME’s Board since 2019. “He has a proven reputation as an entrepreneur, technologist and businessperson. Andrew is aware of my determination to ensure RME lives in perpetuity. RCF and the NRFC recognise and value the standard set by RME for 40 years. Our Board and Chief Executive Team are very excited to be working with both organisations in this new era of growth for the company.”
Russell adds that 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. “We are proud of the impact our inventions have had, the jobs we have created, our contribution to Australia’s sovereign industrial capabilities, and efforts to enhance the wellbeing of the communities in which we operate.”
He concludes: “I am grateful for every RME employee and Board colleague over our 40 years, for their ideas, energy and wonderful camaraderie. I am grateful for every customer, for the faith and trust they have placed in us and for collaborations that have resulted in life-saving inventions and products. I am grateful for every vendor and industry associate who has worked alongside us, sharing mutual goals. I am proud of our regional city of Toowoomba, RME’s foundational city, for the opportunities it has given to me and to RME. We have grown together, maturing and embracing greater levels of diversity. I am proud to contribute so strongly to this city’s economy and culture, through RME.”