ADQ has entered into a partnership with Orion Resource Partners (Orion), a leading global investment firm, to establish a new Abu Dhabi-based 50-50 joint venture in metals and mining sector, focused on strengthening supply chain security in the UAE and beyond.
Initially, the joint venture partners will invest $1.2 billion over the course of the first four years. OMF (ME) JV LP (Orion Abu Dhabi), based in ADGM, aims to invest in mining companies using various financial approaches, such as buying shares, providing loans, and securing deals tied to production, such as royalties, revenue shares, and purchase agreements.
The joint venture will focus on investing in a wide range of critical metals and minerals in various geographies, with an initial emphasis on emerging markets in Africa, Asia and Latin America.
As part of its investment strategy, Orion Abu Dhabi will establish 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.
Hamad Al Hammadi Deputy Group CEO ADQ
“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.”
Aligning with ADQ’s mission to invest in the development of global business platforms delivering value and long-term financial returns for Abu Dhabi, this joint venture will be part of ADQ’s recently formed Infrastructure & Critical Minerals cluster.
Also encompassing ADQ’s investments in leading local and international firms such as Alpha Dhabi Construction Holding and Plenary Group, the cluster seeks 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.
The JV 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 strengthen Orion’s international presence, expanding to five offices globally, and will be headed by Philip Clegg who has served as Managing Partner at Orion and has over 20 years’ experience in natural resources and mining investments.
Oskar Lewnowski, Founder and Group Chief Executive Officer, Orion Resource Partners, stated that, “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.”
Philip Clegg, Managing Partner, Orion Abu Dhabi, added that, “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 urbanization, 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.”
