$15b NRF makes first investment in Queensland manufacturing firm
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The news: Labor's $15 billion National Reconstruction Fund (NRF) has made its first investment of $40 million into a Queensland-based resources equipment manufacturer Russell Mining Equipment (RME).
The context: More than a year after the fund's establishment, Industry Minister Ed Husic will announce the investment for the company, claiming the decision will "ensure RME stays in Toowoomba in Aussie hands".
The NRF – which has been criticised for its slow rollout and beaucratic structure – has $15 billion to invest using direct loans, equity investments and loan guarantees.
RME develops precision technology for the mining including for mill relining in hard rock mining for minerals and metals such as copper, gold, platinum, nickel, zinc and iron ore.
Established in 1985, the government says RME supports hundreds of skilled jobs in Queensland and exports its products to more than 60 countries across the world.
This deal is part of a broader $100 million co-investment partnership between the NRF Corporation and Resource Capital Funds, to support companies who are making mining safer, cleaner and more efficient.
The role of the NRFC is to invest in Australian businesses and projects that sit within seven priority areas, including value-add in resources, to help boost Aussie manufacturing capability, grow a skilled workforce and diversify our economy.
The other priority areas include transport; medical science; defence capability; renewables and low emissions technologies; value-add in agriculture, forestry and fisheries; and enabling capabilities.
What they said: “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.
“In key areas of sovereign capability, our country’s got to be able to stand on its own two feet. We’ve got the talented workers in Australian firms, now they need the investment to grow.
“Importantly too the NRFC is acting as a magnet for private investors to increase growth capital available for Australian manufacturing.
“Driven by the vision to help grow our industrial capabilities, this is the first in what will be a long line of investments the NRFC makes to rebuild our sovereign manufacturing capability and grow high wage, high skill jobs onshore. Well done to them all.”
The source: Industry Minister's office
