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Australia’s national investment fund makes first bet on mining

18th November 2024

By: Bloomberg

  

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Australia’s National Reconstruction Fund will invest A$40-million ($26-million) to boost mining equipment manufacturing in the state of Queensland, the billion-dollar vehicle’s first investment since being set up by the Labor government in 2023.

The independent fund will invest in Queensland-based Russell Mineral Equipment (RME) as part of a joint A$100-million co-investment partnership with Resource Capital Funds, National Reconstruction Fund chair Martijn Wilder announced on Monday.

RME will receive the funds as part of the government’s push to value-add to the mining supply chain in Australia. The company develops liners for crushing plants, or mills, on mine sites.

“Our investment in RME represents a first step for the NRFC in backing leading Australian manufacturers,” Wilder said in a statement. “RME’s cutting-edge solutions not only boost productivity but also enhance safety.”

The A$15 billion investment fund was a key promise of the center-left Labor party ahead of their 2022 election win, part of a pledge by Prime Minister Anthony Albanese to boost domestic manufacturing and bulk up supply chains in the wake of the Covid-19 pandemic. With Australia facing a national election due by May 2025, Monday’s announcement is the first allocation of funds decided by the corporation.

Edited by Bloomberg

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