(MENAFN- Khaleej Times)
Abu Dhabi's sovereign wealth fund, ADQ, has announced a strategic partnership with Orion Resource Partners to establish a new joint venture aimed at enhancing supply chain security in the metals and mining sector. This 50-50 collaboration, named Orion Abu Dhabi, will initially invest $1.2 billion over the next four years.
Headquartered in the Abu Dhabi Global market (ADGM), the joint venture will adopt a multifaceted investment strategy, targeting mining companies through various financial approaches. Orion Abu Dhabi plans to invest by purchasing shares, providing loans, and engaging in production-linked agreements such as royalties and revenue shares. The venture will focus on a diverse range of critical metals and minerals, primarily in emerging markets across Africa, Asia, and Latin America.
One of the key objectives of Orion Abu Dhabi is to establish long-term agreements to secure essential minerals, including copper and high-grade iron ore, which are vital for global supply chain stability and the transition to renewable energy sources.
This partnership aligns with ADQ's mission to foster the development of business platforms that yield long-term financial returns for Abu Dhabi. The venture is part of ADQ's newly established Infrastructure & 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 and support growth across various sectors, particularly in downstream industries like manufacturing and clean energy.
As the joint venture develops its investment portfolio, it will leverage ADQ's extensive global reach alongside Orion's deep sector expertise and transactional experience. Orion Abu Dhabi will expand Orion's international footprint to five global offices, with Philip Clegg, a seasoned expert in natural resources and mining investments, appointed as managing partner.
“As a long-term investor, we are committed to ensuring that our portfolio companies are equipped for success in an evolving landscape. The establishment of Orion Abu Dhabi is a natural progression for us, enabling our companies to pursue their ambitious growth plans with a reliable supply of essential resources. We are confident that Orion's specialized expertise and robust global network will be invaluable to this partnership,” said Hamad Al Hammadi, deputy group chief executive officer of ADQ.
Oskar Lewnowski, founder and group chief executive officer of Orion Resource Partners, highlighted the venture's broader implications:“For the past decade, Orion has collaborated with leading corporations to finance and promote the sustainable production of essential resources. Through Orion Abu Dhabi, we are extending our successful partnership model to support the security of critical material supply chains and contribute to long-term value for the UAE economy.”
Philip Clegg noted the venture's commitment to responsible investment:“Orion Abu Dhabi is dedicated to investing in top-tier mining projects that produce materials crucial for global economic growth. Our focus on megatrends such as urbanization and energy transition will enable us to contribute meaningfully to Abu Dhabi's economic vision by developing resilient supply chains and reinforcing the UAE's emerging role as a leader in the global green economy.”
ADQ currently manages a diverse portfolio of over 25 companies across more than 130 countries. Its investments span key sectors of Abu Dhabi's rapidly evolving economy, including energy, food and agriculture, healthcare, and transport and logistics.
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