Specialist investor the Clean Finance Corporation (CEFC) has invested $75-million in global alternative investment manager Resource Capital Funds (RCF) to support Australia’s emerging critical mineral supply chain and build further momentum in the clean energy transition.

RCF’s flagship private equity fund will bring much-needed capital to Australian mining projects, generating ambitious decarbonisation goals in the hard-to-abate mining sector.

The CEFC commitment helps the Australian mining sector capitalise on the opportunities offered by the clean energy transition, adopt more sustainable mining practices and reduce emissions, as well as helps decarbonise the critical mineral supply chain.

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.

“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,” CEFC Western Australia and resources director Jacqueline Lane said.

She noted RCF’s experience as a 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,” Lane said.

She added that just as Australia had an abundance of the resources that delivered growth and prosperity in the twentieth century, the country had a comparatively large share of the critical minerals that would power the low-emission economies of the future.

“Through positioning as a low emission and high environmental, social and governance (ESG) industry, Australian mining can benefit from the once-in-a-generation demand shift to the minerals required to accelerate world efforts to decarbonise.

“By meeting demand for these resources, the mining sector can help Australia and the world achieve net zero emissions by 2050, while continuing to create jobs and opportunities around the country,” Lane said.

“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,” RCF partner and fund head Jacqui Murray added.