In an effort to supercharge Australia’s critical mineral supply chain, the Clean Energy Finance Corporation (CEFC) is investing $75 million in mining-focused alternative investments firm Resource Capital Funds (RFC).
This move targets the sustainable production of essential minerals like lithium and nickel, which are crucial for clean energy technologies. It also aims to decarbonize mining operations and strengthen Australia’s global competitiveness.
RCF’s flagship private equity fund will bring much-needed capital to Australian mining projects, generating ambitious decarbonization goals in the hard to abate mining sector, stated CEFC in a press release.
The CEFC was established in 2012 by the Australian government to help achieve its national goal of net zero emissions by 2050. Initially, CEFC was endowed with A$10 billion to invest in renewable energy and related technologies. Last year, Australia significantly upped its capital commitment to A$30.5 billion.
The majority of the CEFC’s investment will drive decarbonization 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 sector.
“The world urgently needs a strong supply of critical minerals to power the clean energy transition. From the lithium and nickel for batteries to the copper for transmission, we must secure these minerals quickly and sustainably,” said Jacqueline Lane, CEFC director for Western Australia and resources.
“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.”
Jacqui Murray, partner and head of fund at RCF, added: “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 decarbonization through investments in emerging critical minerals projects.”
