ADQ, a prominent global sovereign investor focused on critical infrastructure and supply chains, has partnered with Orion Resource Partners, a global investment firm specializing in metals and materials. Together, they have established a new joint venture based in Abu Dhabi that will invest strategically in the metals and mining sector, aiming to enhance supply chain security both locally and globally. The joint venture will initially deploy a capital of US$1.2 billion over the first four years.

Operating from the Abu Dhabi Global Market (ADGM), the joint venture, named OMF (ME) JV LP (Orion Abu Dhabi), will invest in mining companies through various asset classes. This includes equity, senior debt, and production-linked instruments like royalties, streams, and offtakes. The venture plans to focus on a diverse mix of metals and minerals across various regions, initially targeting emerging markets in Africa, Asia, and Latin America.

As part of its investment strategy, Orion Abu Dhabi intends to secure long-term agreements to source essential minerals, including copper and high-grade iron ore. These minerals are vital for global supply chain security and the energy transition. This initiative aligns with ADQ’s mission to create global business platforms that deliver value and long-term financial returns for Abu Dhabi.

The joint venture is a significant addition to ADQ’s recently formed Infrastructure and Critical Minerals cluster, which also includes investments in notable local and international firms such as Alpha Dhabi Construction Holding and Plenary Group. The cluster aims to bolster the resilience of the local economy while promoting continued growth across different sectors. Downstream industries such as manufacturing and clean energy are expected to gain direct benefits from sourcing critical raw materials through Orion Abu Dhabi.

The partnership is designed to leverage ADQ’s extensive global reach and Orion’s specialized sector expertise. The new office in Abu Dhabi will mark Orion’s fifth global office, headed by Philip Clegg, Managing Partner at Orion, who brings over 20 years of experience in natural resources and mining investments.

Hamad Al Hammadi, Deputy Group Chief Executive Officer at ADQ, emphasized the commitment to ensuring the success of portfolio companies in a changing operational landscape. He stated that the establishment of Orion Abu Dhabi represents a natural progression, enabling companies to pursue ambitious growth plans with a reliable supply of essential resources. Al Hammadi expressed confidence that Orion’s expertise and global network would be invaluable to this partnership.

Oskar Lewnowski, the Founder and Group Chief Executive Officer of Orion Resource Partners, shared that over the past decade, Orion has collaborated with leading corporations to finance sustainable resource production. Through Orion Abu Dhabi, he noted, they aim to support the security of critical material supply chains and contribute to the UAE’s long-term economic value.

Philip Clegg reiterated that Orion Abu Dhabi is committed to responsibly investing in top-tier mining projects that produce essential materials for global economic growth, with a focus on significant trends such as urbanization, societal development, and the energy transition. ADQ currently manages over 25 portfolio companies across more than 130 countries, operating across key sectors of Abu Dhabi’s rapidly transforming economy, including energy, food, healthcare, and transport.