Abu Dhabi, UAE — ADQ, a sovereign investor with a focus on critical infrastructure and supply chains, and Orion Resource Partners, a global investment firm specializing in metals and materials, have entered into an agreement to establish a new Abu Dhabi-based 50-50 joint venture that will make strategic investments in the metals and mining sector to enhance supply chain security locally and globally.
The joint venture partners are committed to deploying an initial US$1.2 billion of capital over the first four years.
Based out of Abu Dhabi Global Market (ADGM), OMF (ME) JV LP (Orion Abu Dhabi) will work towards investing in mining companies through multiple asset classes, including equity, senior debt and production-linked instruments, such as royalties, streams and offtakes.
The joint venture will target investments in a diverse range of metals and minerals in various geographies, initially focusing on emerging markets in Africa, Asia and Latin America.
As part of its investment strategy, Orion Abu Dhabi will secure long-term agreements to source essential minerals, including copper, high grade iron ore, and other key commodities important for global supply chain security and the energy transition.
In line with ADQ’s mission to invest in developing global business platforms delivering value and long-term financial returns for Abu Dhabi, the joint venture with Orion will be part of ADQ’s recently established Infrastructure and Critical Minerals cluster.
Also encompassing ADQ’s investments in prominent local and international firms such as Alpha Dhabi Construction Holding and Plenary Group, the cluster aims to contribute to the resilience of the local economy while enabling the continued growth of the wider investment portfolio in other sectors. Downstream sectors such as manufacturing and clean energy are expected to directly benefit from sourcing critical raw materials through Orion Abu Dhabi.
The joint venture is set to derive added value from ADQ’s strong global reach and standing as well as Orion’s deep sector expertise and transactional excellence.
The new office in Abu Dhabi will expand Orion’s international presence to five offices globally. It will be headed by Philip Clegg who has served as Managing Partner at Orion and brings over 20 years of experience in the natural resources and mining investments to his role.
Hamad Al Hammadi, Deputy Group Chief Executive Officer at ADQ, 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.”
Oskar Lewnowski, Founder and Group Chief Executive Officer of Orion Resource Partners, said, “Over the past decade, Orion has partnered with leading corporations to finance and advance the sustainable production of the resources that are essential to our society. Through Orion Abu Dhabi, we are bringing our successful partnership model to Abu Dhabi to support the security of critical material supply chains and global decarbonization efforts and to contribute to long-term value for the UAE economy.”
ADQ manages over 25 portfolio companies across more than 130 countries. Its portfolio companies operate across key sectors of Abu Dhabi’s rapidly transforming economy, including energy and utilities, food and agriculture, healthcare and life sciences, and transport and logistics.