VANCOUVER, CANADA, February 1, 2025 — Abu Dhabi’s sovereign wealth fund, ADQ, has announced a strategic partnership with Orion Resource Partners to establish a $1.2 billion joint venture aimed at investing in the metals and mining sector. This collaboration, named Orion Abu Dhabi, is structured as a 50-50 partnership between the two entities.
Strategic Objectives and Investment Focus
Orion Abu Dhabi is set to invest in metals and mining companies through various financial instruments, including equity, senior debt, and production-linked mechanisms such as royalties, streams, and offtakes. The joint venture will target a diverse range of strategic minerals essential for global supply chain security and the energy transition, with an initial focus on emerging markets across Africa, Asia, and Latin America.
The venture aims to secure long-term agreements to source critical minerals, including copper and high-grade iron ore, which are vital for various industries and technological advancements.
Integration into ADQ’s Portfolio
This joint venture aligns with ADQ’s mission to develop global business platforms that deliver value and long-term financial returns for Abu Dhabi. Orion Abu Dhabi will be part of ADQ’s recently established Infrastructure & Critical Minerals cluster, which includes investments in prominent local and international firms such as Alpha Dhabi Construction Holding and Plenary Group. This cluster aims to enhance the resilience of the local economy while supporting the growth of ADQ’s wider investment portfolio in other sectors. Downstream industries, including manufacturing and clean energy, are expected to benefit directly from the sourcing of critical raw materials through Orion Abu Dhabi.
Leadership and Global Expansion
The new office in Abu Dhabi will expand Orion’s international presence to five offices globally. It will be led by Philip Clegg, who has over 20 years of experience in natural resources and mining investments.
Statements from Leadership
Hamad Al Hammadi, Deputy Group Chief Executive Officer at ADQ, emphasized the importance of this venture, stating, “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.”
Oskar Lewnowski, Founder and Group Chief Executive Officer of Orion Resource Partners, highlighted the firm’s commitment to sustainable resource production, stating, “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 decarbonization efforts, and to contribute to long-term value for the UAE economy.”
Implications for the Mining Industry
The formation of Orion Abu Dhabi signifies a strategic move by ADQ to secure essential resources and strengthen its position in the global mining sector. By focusing on emerging markets and investing in critical minerals, the joint venture aims to enhance supply chain security and support the global energy transition. This initiative reflects a broader trend of sovereign wealth funds investing in natural resources to ensure long-term economic stability and growth.
The collaboration between ADQ and Orion Resource Partners is expected to have significant implications for the mining industry, particularly in emerging markets. By providing capital and expertise, Orion Abu Dhabi could facilitate the development of mining projects that might otherwise face financial or operational challenges. This could lead to increased production of critical minerals, contributing to global supply chain stability and supporting the transition to a more sustainable energy future.
In summary, the establishment of Orion Abu Dhabi represents a strategic partnership aimed at securing essential resources, enhancing supply chain security, and supporting the global energy transition. Through targeted investments in critical minerals, the joint venture seeks to contribute to the resilience and growth of both the UAE’s economy and the broader global market.
