ADQ, a global sovereign investor, and Orion Resource Partners, a global investment company, have announced a $1.2bn (Dh4.41bn) joint venture (JV) to invest in strategic metals and minerals over the course of its first four years.
This Abu Dhabi-based 50-50 JV, named Orion Abu Dhabi, aims to enhance supply chain security locally and globally. It will focus on investing in mining companies through various asset classes.
Orion Abu Dhabi will operate from Abu Dhabi Global Market, targeting investments in diverse metals and minerals across Africa, Asia and Latin America.
The venture will secure long-term agreements for essential minerals like copper and high-grade iron ore that are crucial for global supply chain security and the energy transition.
ADQ deputy group CEO Hamad Al Hammadi said: “As a long-term investor, we are committed to ensuring that our portfolio companies are set up for success in an ever-changing operating environment.
“The establishment of Orion Abu Dhabi is a natural step for us, allowing our companies to execute their ambitious growth plans with the assurance of a resilient supply of essential resources. We are confident that Orion’s specialist expertise and strong global network will be a great asset to this partnership and look forward to our shared journey.”
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By GlobalData
The venture forms part of ADQ’s Infrastructure & Critical Minerals cluster, which includes investments in companies like Alpha Dhabi Construction Holding and Plenary Group. This cluster aims to boost the local economy’s resilience and support growth in other sectors.
Downstream sectors such as manufacturing and clean energy are expected to benefit from the sourcing of critical raw materials through Orion Abu Dhabi.
The JV will leverage ADQ’s global reach and Orion’s sector expertise to build its investment portfolio over the coming years.
Orion Abu Dhabi managing partner Philip Clegg said: “Orion Abu Dhabi is dedicated to investing responsibly in best-in-class mining projects that produce the materials that underpin global economic growth, focusing on megatrends including urbanisation, societal development and the energy transition.
“We look forward to delivering a meaningful contribution to Abu Dhabi’s economic vision through the development of resilient and adaptable supply chains and contributing to the UAE’s [United Arab Emirates] emerging role as a leader in the global green economy.”
