Middle East sovereign wealth fund ADQ and Orion Resource Partners are forming a $1.2 billion Abu Dhabi-based metals and critical minerals joint venture.
Orion Abu Dhabi will be a 50-50 joint venture that invests in metals and mining companies, and will also secure the supply of strategic metals and critical minerals by acquiring the physical offtake of such materials, a joint news release said.
The investment firm, which will be established in Abu Dhabi Global Market, the financial center within the capital of the United Arab Emirates, will initially target investments in emerging markets across Africa, Asia and Latin America.
ADQ had $225 billion in assets as of June 30.
Orion Resource Partners is an investment firm specializing in metals and minerals needed for sustainable economic growth and the energy transition, has more than $8 billion in assets under management. The new joint venture based in Abu Dhabi is Orion’s fifth office.
ADQ and Orion have committed to deploying an initial $1.2 billion of capital over the first four years. Investments will be made in mining companies through asset classes including equity, senior debt and production-linked instruments such as royalties, the release said.
Long-term agreements to source essential minerals, such as copper and other commodities that are key to the energy transition, will be secured as part of the joint venture’s investment strategy.
“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,” Hamad Al Hammadi, deputy group CEO at ADQ, said in the release.
“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.”
