Australia’s National Reconstruction Fund Pledges $40 Million Towards 1st Project

Federal Member for Chifley Ed Husic at a press conference at Parliament House in Canberra, Thursday, December 10, 2020. AAP Image/Mick Tsikas

After some delay, the Albanese Labor government’s $15 billion National Reconstruction Fund (NRF) has announced its first investment.

On Nov. 19, the NRF Corporation (NRF) pledged $40 million for Queensland-based Russell Mineral Equipment (RME).

According to the government statement, RME develops technology for mineral processing, particularly critical minerals like copper, gold, platinum, nickel, zinc, and iron ore—key components in clean energy generation and storage.

The deal is part of a broader $100 million co-investment with Resource Capital Funds.

Ed Husic, the minister for industry and science, said the announcement reflects the Albanese government’s commitment to revitalising Australian manufacturing.

“The NRF is playing a vital part, backing the growth of Australia’s manufacturing capabilities,” he said.

NRFC Chair Martijn Wilder said this was a “first step” for the Fund.

“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.”

Further the minister said the NRC would not be influenced by pork barrelling.

“We are not about politically colour-coded spreadsheets, making decisions on the basis of political interest over national interests,” he told reporters in Canberra on Nov. 19.

“This first investment is not in a government-held seat. It didn’t come into it. What came into it was retaining and building capability in Toowoomba.”

NRF Aims to Spark Innovation

The NRF is a government fund that invests in projects within seven priority areas, including resource value-adding, transport, medical science, defence capability, renewables and low-emissions technologies, agriculture, forestry and fisheries.

It operates with an independent board that makes commercial decisions separate from government influence.

The Fund was established with the support of the Greens with the caveat that it does not support projects in coal, gas, or native forest logging.

Opposition Says Government Too Slow to Act

The federal opposition has frequently criticised delays in setting up the NRF and distributing funds.

Earlier this year, Deputy Opposition Leader Sussan Ley labelled the NRF as being in “disarray,” claiming the government had failed to provide a coherent plan for manufacturers grappling with insolvencies.

“Is it any wonder the much-hyped Fund, legislated more than one year ago, still hasn’t spent a single cent in support of Australian manufacturing?” Ley said.

“Over that time, we have seen 1,272 manufacturers go to the wall,” Ley said, saying 900 days had gone by since the NRC was tapped.