Resource Capital Funds backs Australian mining projects with decarbonisation focus
Building further momentum in the clean energy transition
Global alternative investment manager Resource Capital Funds is working with the CEFC to realise clean energy transition opportunities for the mining sector.
US$75 million
CEFC commitment
Decarbonising
mining
Boosting
critical minerals
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.Jacqui MurrayPartner and Head of Fund, RCF
Our investment
The CEFC has invested US$75 million (~AU$116 million) in the flagship private equity fund of Resource Capital Funds (RCF) to support Australia’s emerging critical mineral supply chain.
The investment brings much-needed capital to Australian mining projects while generating ambitious decarbonisation goals in the hard-to-abate sector.
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.
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.Jacqueline LaneDirector for WA and Resources, CEFC
OUR IMPACT
A crucial decarbonisation role
The mining sector accounts for nearly 10 per cent of Australia’s national emissions and is considered a hard-to-abate sector reflecting the high energy intensity of mining activities, the heavy reliance on emissions intensive fuels and the requirements for thermal energy in processing activities.
Much of our future low emissions economy relies on what the mining sector produces – not the least because of an abundance of critical minerals. In turn, Australia’s mining businesses can benefit from the operational efficiencies and low-cost energy solutions underpinning the transition to net zero emissions.1
Australian mining can benefit from the once-in-a-generation demand shift to the minerals required to accelerate world efforts to decarbonise, through positioning itself as a low-emission and high ESG industry.
The CEFC, through its investment with RCF, is working to support the Australian mining sector to:
- capitalise on the opportunities offered by the clean energy transition
- adopt more sustainable mining practices and reduce emissions
- help decarbonise the critical mineral supply chain.
1. Minerals Research Institute of Western Australia, CEFC: The compelling case for decarbonisation: Mining in a low emissions economy
