ADQ joins Orion in $1.2bn metals joint venture

Alamy

• Copper and iron ore targeted
• Emerging markets in frame
• Fifth international office for Orion

The third-largest of Abu Dhabi’s sovereign wealth funds, ADQ, is setting up a $1.2 billion joint venture with the US investment company Orion Resource Partners to invest in the metals and mining sector.

The 50-50 joint venture will be based in Abu Dhabi and will target long-term agreements to source essential metals and minerals, including copper and high-grade iron ore, in emerging markets across Africa, Asia and Latin America, ADQ said in a statement. 

The two sides have committed themselves to deploying an initial $1.2 billion of capital over the course of the first four years of the joint venture.

“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,” said Hamad Al Hammadi, deputy group CEO at ADQ.

Orion Abu Dhabi will invest in mining companies through multiple asset classes, including equity, senior debt and production-linked instruments, such as royalties, streams and off-takes.

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ADQ, the Abu Dhabi Developmental Holding Company is based at Capital Gate in Abu Dhabi and controls $225 billion of assets, putting it behind its Abu Dhabi compatriots Mubadala Investment Company and Adia.

It said downstream sectors such as manufacturing and clean energy are expected to benefit from Orion Abu Dhabi’s sourcing of critical raw materials.

The new office at Abu Dhabi Global Market on Al Maryah Island in Abu Dhabi will expand Orion’s international presence to five offices globally.

Oskar Lewnowski, the founder and group CEO of Orion Resource Partners, said: “Through Orion Abu Dhabi, we are bringing our successful partnership model to Abu Dhabi to support the security of critical material supply chains, global decarbonisation efforts, and to contribute to long-term value for the UAE economy.”

The processing of critical minerals, which includes lithium, for making batteries, platinum, used in fuel cells, copper, and bauxite, the raw material for aluminium, is attracting investment from both the UAE and Saudi Arabia in recent months.