Tag Archives: CEFC

Australia’s CEFC tips cash into RCF’s mining-focused private equity fund

Mining finance, Mining services, , , ,

The CEFC has invested $75 million in global alternative investment manager Resource Capital Funds (RCF) to, it says, support Australia’s emerging critical mineral supply chain and build further momentum in the clean energy transition.

RCF’s flagship private equity fund will bring much-needed capital to Australian mining projects, generating ambitious decarbonisation goals in the hard to abate mining sector, it says.

The CEFC commitment helps the Australian mining sector capitalise on the opportunities offered by the clean energy transition, adopt more sustainable mining practices and reduce emissions well as helping decarbonise the critical mineral supply chain, it says.

The majority of the CEFC investment will drive decarbonisation within Australian mining operations. An option to invest a minority portion in aligned mining operations around the world has the potential to reduce global emissions in this critical sector.

CEFC Director for WA and Resources, Jacqueline Lane, said: “The world urgently needs a strong supply of critical minerals to power the clean energy transition. From the lithium and nickel for batteries to the copper for transmission, we must secure these minerals quickly and sustainably.

“RCF is a highly experienced mining investment house. Our work with them will enhance environmental standards and reinforce the competitive advantage of Australian minerals in the global market with the potential to further develop onshore downstream processing infrastructure with financial discipline.

“Just as Australia had an abundance of the resources that delivered growth and prosperity in the 20th century, we have a comparatively large share of the critical minerals that will power the low emissions economies of the future.

“Through positioning as a low emission and high ESG industry, Australian mining can benefit from the once-in-a-generation demand shift to the minerals required to accelerate world efforts to decarbonise. By meeting demand for these resources, the mining sector can help Australia and the world achieve net zero emissions by 2050, while continuing to create jobs and opportunities around the country.”

Jacqui Murray, Partner and Head of Fund at RCF, said: “We believe the world is undergoing a paradigm shift in the demand for metals and minerals, and are pleased to be working with the CEFC to advance decarbonisation through investments in emerging critical minerals projects.”

In 2022. the CEFC invested $14 million into the RCF Jolimont Mining Innovation Fund II, RCF’s private equity fund specialising in mining innovation.

Australia’s CEFC invests in RCF’s decarbonisation-focused METS funding platform

Energy minerals, Environmental, Mining equipment, Mining finance, Mining services, Power supply for mines, Sustainable mining, Water management, , , , , ,

Resource Capital Funds says The Clean Energy Finance Corporation (CEFC), Australia’s largest dedicated cleantech investor, has invested $14 million into RCF Jolimont Mining Innovation Fund II (RCF Jolimont Fund II), a private equity fund specialising in mining innovation that, RCF says, strives to make mining safer, better and more efficient.

RCF Jolimont Fund II will invest in growth mining equipment, technology and services (METS) companies with an increasing focus on mining innovation investments that look to support the decarbonisation of the sector and meet the mining industry’s appetite for the clean energy technologies that will seek to accelerate the reduction of emissions across the industry.

Lyle Bruce, Partner, Head of RCF Jolimont, says: “The METS sector is helping to enable the sustainable mining of critical energy transition metals like copper, nickel, lithium and others that the world is demanding. We are proud to have the support of the CEFC to continue investing in emerging mining technologies that are revolutionising how mines operate, and helping reduce the emissions of Australia’s mining operations.”

CEFC Resources Executive Director, Rob Wilson, said: “Reducing emissions in the mining industry is critical to Australia’s push towards net zero emissions and will help position the sector competitively for the future. Our investment in RCF Jolimont II will help tackle what is a traditionally hard-to-abate sector by backing companies that are developing innovative solutions to emissions reduction.

“The RCF team has exceptional experience in mining-focused private equity and specialist expertise in fostering the growth of mining innovation companies. The potential pipeline of investee companies offers an exciting opportunity to recast mining in Australia for the long term as we help solve the challenge of decarbonising mining.”

3ME looks to scale-up Bladevolt battery system tech following A$20m investments from CEFC, AGBF

Environmental, Mining equipment, Mining finance, Power supply for mines, Sustainable mining, , , , , ,

3ME Technology has completed a A$20 million ($14.6 million) capital raise with the CEFC and the Australian Business Growth Fund (AGBF) that will allow the company to scale-up production of its modular and scalable battery systems.

The CEFC, on behalf of the Australian Government, has pledged A$5 million of investment in 3ME, with the remainder coming from the AGBF.

The investment, the CEFC says, will enable miners to replace diesel engines with cutting-edge battery electric systems, reducing their emissions and supporting safer, more efficient mine operations.

Based in the Hunter region of New South Wales, 3ME’s battery systems have featured in Safescape’s Bortana EV and, more recently, in the TRITEV Integrated Tool-Carrier/Loader running at Aeris Resources Tritton copper operations in the state.

Its Bladevolt battery technology, the CEFC says, allows remote performance monitoring and control of battery pack cells, and is modular and powerful enough to transform a 20-t loader – such as the TRITEV – into a fully electric-powered vehicle.

Earlier this year, 3ME confirmed a circa-A$140 million deal had been agreed between it and Batt Mobile Equipment (BME). The pact between the two companies, which worked on the development of the TRITEV, would see 3ME supply BME with upwards of 150 electric vehicle engine packages over the next five years to power BME’s 20 t Integrated Tool Carrier battery-electric vehicle retrofits.

On the recent funding agreement, CEFC CEO, Ian Learmonth, said: “The decarbonisation of Australia’s resources sector is critical to our clean energy transition and electrification has an important part to play. Mining vehicles have unique needs and 3ME Technology’s battery system is a purpose-built solution that will enable the sector to capture more of the benefits of clean energy.

“3ME Technology has come up with a scalable solution that replaces carbon intensive diesel engines to enable mining vehicles to be powered by clean, green energy to drive down emissions. It also provides important health and safety benefits by removing diesel emissions to improve a mine’s air quality, and its bottom line, by saving on ventilation costs.”

The electrification of mining assets over the next five years through the installation of the 3ME Technology battery systems is estimated to abate 49,000 CO2-e/y on average and about 735,000 CO2-e over the lifetime of the assets, the CEFC says.

Mining vehicles now suitable for retrofit or replacement with 3ME Technology-based electric systems include light vehicles, personnel carriers, LHDs and integrated tool carriers. With a domestic market size of about 7,000 diesel vehicles operating in more than 400 mines across Western Australia, Queensland and New South Wales, there is a significant potential market for 3ME Technology’s systems, according to the CEFC.

3ME Technology, CEO Justin Bain, said: “In developing the Bladevolt battery system, our focus has been on meeting the very high safety and operating demands of heavy vehicles used in Australia’s resources sector. With that challenge solved, and the investment backing of the CEFC, we are ready to scale up production and help the mining industry deliver better performance through lower emissions and improved operator safety.”

CEFC Executive Director, Western Australia and Resources, Rob Wilson said: “Electrifying mining fleet vehicles is not just good for sustainability, it makes good business sense for mines in terms of operations, health, energy efficiency and information optimisation.

“A growing interest in clean supply chains means manufacturers are increasingly preferencing low carbon materials from suppliers. Replacing diesel engines with electric technology enables suppliers to reduce the carbon footprint of their mobile and transport equipment.”

The CEFC invests to reduce carbon emissions across the Australian economy, including in the resources and industrial sectors. It has supported the evolution of new industry sectors related to the clean energy transition, and also invests in established producers to improve sustainability in mining through energy efficient equipment, low emissions transport and renewable energy. CEFC resource sector investments include financing a 10 MW solar plant and 6 MW battery at the DeGrussa copper-gold Mine, investing in the renewable supply chain to help Pilbara Minerals meet growing demand for lithium and supporting the establishment of a low emissions fertiliser industry with SO4 Limited.

The 3ME Technology investment aligns with the Australian Government Low Emissions Technology Statement by using emerging technologies to support emissions reduction from primary industries, it says.

The transaction is the first investment by ABGF, which was established to provide patient growth capital to Australian SMEs as a public-private partnership between the Australian Government, ANZ, NAB, CBA, Westpac, Macquarie, and HSBC.