Abu Dhabi’s sovereign wealth fund, ADQ, has partnered with Orion Resource Partners to establish a joint venture focused on metals and mining, ADQ announced on Thursday. This initiative aligns with the fund’s strategy to expand its critical minerals portfolio.
The 50-50 joint venture, headquartered in Abu Dhabi, will see ADQ and global investment firm Orion commit an initial investment of USD 1.2B over four years. Their focus will be on mining companies operating in emerging markets across Africa, Asia, and Latin America, according to ADQ’s statement.
Investments will be made across various asset classes, including equity, senior debt, and production-linked financial instruments such as royalties.
Established in 2018, ADQ holds a diverse range of domestic assets spanning energy, healthcare, transport, and logistics, including Abu Dhabi’s national airline, Etihad Airways.
By the end of June, the fund managed assets worth USD 225B and has been directing investments towards sectors that support Abu Dhabi’s economic diversification strategy, reducing dependence on oil revenues.
ADQ highlighted that the joint venture would facilitate the supply of essential raw materials, benefiting downstream industries such as manufacturing and clean energy.
This initiative will be integrated into ADQ’s infrastructure and critical minerals cluster, which also includes Australian infrastructure investment firm Plenary Group.
Philip Clegg, previously a managing partner at Orion, will lead the new office.