The Clean Energy Finance Corporation (CEFC) has partnered with Resource Capital Funds (RCF) to accelerate decarbonisation in the mining industry.
This marks a significant step towards a more sustainable future.
The CEFC, is a Federal Government-owned specialist investor. It is dedicated to supporting Australia’s journey to net-zero emissions through strategic investments in clean energy initiatives. This latest collaboration involves a $US75 million ($117.3 million) investment in RCF, a private equity firm with a mining portfolio valued at $2 billion. Together, they aim to drive transformative change in Australia’s mining sector, focusing on critical minerals such as lithium, nickel, and copper.
These minerals are essential for the clean energy transition, playing a crucial role in technologies like electric vehicle (EV) batteries and renewable energy systems.
However, 2024 has presented challenges for the lithium and nickel markets.
With cyclically low prices triggered by a surplus of supply from countries like Indonesia and China, where environmental, social, and governance (ESG) standards are less stringent. Additionally, a slowdown in global EV sales, despite rising demand, has contributed to these price pressures.
CEFC’s $US75 million investment is set to empower critical minerals companies to seize the opportunities presented by the clean energy transition. The funding will support the adoption of more sustainable mining practices. It will also reduce emissions, and help decarbonise the critical minerals supply chain.
“The world urgently needs a strong supply of critical minerals to power the clean energy transition,” said Jacqueline Lane, CEFC’s Director for WA and Resources. “From the lithium and nickel for batteries to the copper for transmission, we must secure these minerals quickly and sustainably.”
Lane emphasised the value of RCF’s expertise, stating, “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. This partnership also holds the potential to further develop onshore downstream processing infrastructure with financial discipline.”
The investment also includes an option to allocate a portion of CEFC’s funding to mining projects worldwide.
The aim is to reduce global emissions while maintaining Australia’s leadership in the sector.
Federal Climate Change and Energy Minister Chris Bowen praised the initiative, especially in light of the recent passage of the ‘Future Made in Australia’ legislation in the Senate.
“We know Australia has the potential to be a renewable energy superpower, and with our enormous mineral wealth, we can help the world make the switch to net-zero too,” Bowen said.
“Our ‘Future Made in Australia’ plan ensures we use our resources base to power the world while bringing jobs and wealth back home, especially in regional communities.”
This partnership between CEFC and RCF underscores Australia’s commitment to leading the clean energy transition. It also ensures the sustainability and competitiveness of its mining industry.