Abu Dhabi’s sovereign wealth fund, ADQ, has formed a strategic partnership with Orion Resource Partners to create a new joint venture focused on enhancing supply chain security in the metals and mining sector. This collaboration, named Orion Abu Dhabi, will see an initial investment of $1.2 billion over the next four years, with both parties holding a 50-50 stake in the venture.

Headquartered in the Abu Dhabi Global Market (ADGM), Orion Abu Dhabi aims to implement a multifaceted investment strategy targeting mining companies through various financial methods. The joint venture plans to invest by purchasing shares, providing loans, and entering into production-linked agreements, including royalties and revenue shares. Its primary focus will be on a diverse range of critical metals and minerals, particularly in emerging markets across Africa, Asia, and Latin America.

A key goal of Orion Abu Dhabi is to secure long-term agreements for essential minerals such as copper and high-grade iron ore. These materials are vital for ensuring global supply chain stability and facilitating the transition to renewable energy sources. This initiative aligns with ADQ’s mission to support the development of business platforms that offer long-term financial returns for Abu Dhabi.

This joint venture is part of ADQ’s newly established Infrastructure & Critical Minerals cluster, which also includes investments in prominent local and international firms such as Alpha Dhabi Construction Holding and Plenary Group. The cluster is designed to enhance the resilience of the local economy and promote growth across various sectors, especially in downstream industries like manufacturing and clean energy.

As the venture builds its investment portfolio, it will leverage ADQ’s extensive global reach in conjunction with Orion’s deep sector expertise and transactional experience. Orion Abu Dhabi aims to expand Orion’s international footprint to five global offices, with Philip Clegg, an expert in natural resources and mining investments, appointed as managing partner.

Hamad Al Hammadi, deputy group chief executive officer of ADQ, emphasized the commitment to long-term investment, stating that the establishment of Orion Abu Dhabi is a natural progression that will enable portfolio companies to pursue ambitious growth plans with a reliable supply of essential resources. He expressed confidence that Orion’s specialized expertise and robust global network would be invaluable to this partnership.

Oskar Lewnowski, founder and group chief executive officer of Orion Resource Partners, highlighted the broader implications of the venture, noting that Orion has worked with leading corporations over the past decade to finance and promote sustainable production of essential resources. Through this new venture, he aims to support the security of critical material supply chains and contribute to long-term value for the UAE economy.

Philip Clegg reiterated the venture’s commitment to responsible investment, stating that Orion Abu Dhabi is dedicated to investing in top-tier mining projects that produce materials crucial for global economic growth. He added that focusing on megatrends like urbanization and energy transition will allow them to significantly contribute to Abu Dhabi’s economic vision by developing resilient supply chains and reinforcing the UAE’s role as a leader in the global green economy.

ADQ currently manages a diverse portfolio of over 25 companies across more than 130 countries, with investments spanning key sectors of Abu Dhabi’s rapidly evolving economy, including energy, food and agriculture, healthcare, and transport and logistics.