ADQ enters strategic agreement with Orion Resource Partners to establish USD$1.2bn joint venture in metals and mining sector

ADQ has partnered with Orion Resource Partners (Orion) 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 in the UAE and globally. The joint venture partners will initially invest US$1.2 billion over the course of the first four years.

Based in Abu Dhabi Global Market (ADGM), OMF (ME) JV LP (Orion Abu Dhabi) will invest in mining companies using various financial approaches, including buying shares, providing loans, and securing deals tied to production, such as royalties, revenue shares, and purchase agreements. The joint venture will target investments in a diverse range of critical 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 the development of 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 & 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 the sourcing of critical raw materials through Orion Abu Dhabi.

As it builds its investment portfolio in the coming years, 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 experience. The new office in Abu Dhabi will expand Orion’s international presence to five offices globally, and will be headed by Philip Clegg who has served as Managing Partner at Orion and has more than 20 years’ experience in natural resources and mining investments.

Hamad Al Hammadi, Deputy Group Chief Executive Officer, ADQ, said: “As a long-term investor, we are committed to ensuring that our portfolio of 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, 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, global decarbonisation efforts and to contribute to long-term value for the UAE economy.”

Philip Clegg, Managing Partner, Orion Abu Dhabi, 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 emerging role as a leader in the global green economy."

ADQ manages more than 25 portfolio companies across more than 130 countries. Its portfolio of 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.