Abu Dhabi's sovereign wealth fund, ADQ, has announced a significant new venture aimed at boosting its investments within the metals and mining sectors. This strategic partnership with Orion Resource Partners is set to see the allocation of $1.2 billion over the next four years, reflecting Abu Dhabi's commitment to securing supplies of strategic minerals.
The newly formed venture, dubbed Orion Abu Dhabi, is structured as a 50-50 partnership between ADQ and the New York-headquartered Orion Resource Partners. Operating from the Abu Dhabi Global Market (ADGM), this joint venture plans to focus primarily on investments across Africa, Asia, and Latin America. Investments will be made through various asset classes, including equity, debt, and production-linked instruments such as royalties, according to details released on January 30, 2025.
Hamad Al Hammadi, Deputy Group CEO of ADQ, articulated the venture's importance when he stated, "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 necessary resources." This initiative is part of Abu Dhabi's broader strategy to diversify its economy, moving away from its heavy reliance on oil revenues.
Historically, Abu Dhabi has been proactive about securing its supply of minerals. Just last year, ADQ's investment arm invested $1.1 billion in a copper mine located in Zambia, demonstrating the emirate's continued dedication to enhancing its resource procurement strategy. Reports now indicate the firm is exploring potential investments as far afield as the Democratic Republic of Congo for tin mining, evidencing its expanded geographic ambitions.
The new venture aligns with ADQ’s existing infrastructure and minerals cluster, which already includes substantial investments such as its partnerships with companies like Alpha Dhabi Construction Holding and Plenary Group. This cluster aims to strengthen the local economy by providing foundational resources needed to support various sectors, including manufacturing and clean energy solutions.
Philip Clegg, Managing Partner at Orion Resource Partners, is set to lead the Abu Dhabi office. Highlighting the venture’s vision, he commented, "Orion Abu Dhabi is dedicated to investing responsibly in best-in-class mining projects... focusing on megatrends including urbanization, societal development and the energy transition." His leadership signals aspirations not just for financial returns, but for substantial contributions to the UAE’s ambitions to be recognized globally as a leader within the green economy.
The joint venture intends to secure long-term agreements related to key minerals such as copper and high-grade iron ore, which are increasingly becoming pivotal to the global supply chain, especially as countries navigate their own energy transitions. ADQ’s backdrop includes managing around $249 billion across various sectors, making this partnership not only significant for its scale but also strategic from both operational and economic perspectives.
Through this initiative, ADQ aims to leverage its global reach alongside Orion's mining sector expertise to bolster its investment portfolio, seeking not only to drive profitability but also to contribute toward building resilient and adaptable supply chains.
Both entities are equally invested, with each party holding a 50% stake, facilitating collaborative decision-making and pooling of resources. Such partnerships exemplify the UAE's position as a growing force within the international investment community as it seeks out opportunities aligned with future global trends.
Overall, the launch of Orion Abu Dhabi marks another chapter for Abu Dhabi as it strategically positions itself within the global mining sector. This $1.2 billion initiative is poised to solidify its efforts to mitigate risks associated with raw material shortages and capitalize on the growing demand for sustainable mineral resources, paving the way for the emirate's next phase of economic development.