Federal Government to fund $40 million share Russell Mineral Equipment purchase

In a deal that is billed as protecting Australian jobs, the Federal Government will partner with a private investment firm to buy this iconic Australian manufacturer.

Russell Mineral Equipment founder Dr John Russell.

Iconic Toowoomba manufacturing business Russell Mineral Equipment will be sold to a partnership of the Resource Capital Fund and the Federal Government’s National Reconstruction Fund Corporation.

In about six months RCF will take on ownership of the RME brand, while the NRFC will be shareholder and board observer.

Founder and Chairman John Russell made the announcement on Monday and said the partnership was good way for the Federal Government to invest in Australian businesses.

“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,” he said.

“I have just turned 70 and the last thing I want to do is slip on a banana and leave everyone with a gigantic headache or for the business to go through a distressed sale.

“NRFC is self-governing and I like the model, it aligns with private capital which saves it the risk of trying to pick a winner.”

RME board members Dr John Russell Dr Peter Rubie will stay on as advisers after the company is sold.

While the deal is being finalised Mr Russell, his wife Cherylyn and Peter Rubie will stay on as directors, before moving to an advisory role.

Importantly, the business will continue to be headquartered in Toowoomba.

“Jobs will grow,” Mr Russell said.

“You can’t grow what we want to do without more staff, from the smart robotics end of things to the tradesmen that build the equipment.

“RME is a great Australian manufacturer and there is no talk of changing the brand.”

The NRFC will contribute $40 million while RCF will contribute the balance of the undisclosed sale price.

It will be the first time the $15 billion NRFC has purchased a part of a mining company.

“Our investment in RME represents a first step for the NRFC in backing leading Australian manufacturers,” NRFC chair Martijn Wilder said.

“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.”

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.

An interior shot of a Russell Mineral Equipment Mill Relining Machine.

Its other priority areas include transport, medical science, defence capability, renewables and low emissions technologies, agriculture, forestry and fisheries; and enabling capabilities.

Founded in Toowoomba in 1985, RME grew to be a world leading manufacturer of mill relining systems

The machines allow mines to safely and efficiently replace the teeth on large mills that grind ore into dust before it can be processed.

RME was enjoying consistent growth until Russia invaded Ukraine in 2022 and the international community imposed strict sanctions on the aggressor.

A significant portion of RME’s business was in Russia and while the downturn led to jobs cuts, a week later the company celebrated the sale of its 500th machine, to a West Australian gold mine.

Today the company operates in 64 countries, has 13 international sales and service centres, and employs more than 450 people worldwide after an expansion that was solely funded by Mr Russell.

Federal Industry Minister Ed Husic said the deal would protect Australian jobs.

“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,” he said.

“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.”

Originally published as Federal Government to fund $40 million share Russell Mineral Equipment purchase