Abu Dhabi’s sovereign wealth fund, ADQ, and Orion Resource Partners, a global investment firm specializing in mining and metals, have announced a landmark joint venture to invest $1.2 billion in the metals and mining sector.

The 50/50 joint venture, headquartered in Abu Dhabi, will target mining companies operating in emerging markets across Africa, Asia, and Latin America. Over the next four years, the partners will deploy the substantial capital across a range of asset classes, demonstrating a flexible investment approach. These include equity stakes, senior debt financing, and production-linked instruments such as royalties, allowing them to tailor investments to specific opportunities and risk profiles.

This significant investment comes as the demand for critical minerals, essential for manufacturing, clean energy technologies, and various other downstream sectors, is rapidly increasing. ADQ recognizes the strategic importance of securing access to these resources and has identified the metals and mining sector as a key area for growth. The partnership with Orion, a firm with deep expertise in the mining industry, provides ADQ with the necessary knowledge and experience to navigate this complex market.

ADQ, established in 2018, manages a diverse portfolio of domestic assets spanning energy, healthcare, transportation, and logistics, including Etihad Airways. With assets under management totaling $225 billion as of June 2024, the fund plays a crucial role in Abu Dhabi's economic diversification strategy. By investing in sectors beyond oil and gas, ADQ aims to reduce the emirate's reliance on hydrocarbon revenues and build a more sustainable and resilient economy.

The investment in metals and mining aligns perfectly with this objective. ADQ anticipates that the secure supply of critical raw materials through the joint venture will significantly benefit downstream sectors within Abu Dhabi, including manufacturing and the burgeoning clean energy industry. This strategic focus on resource security is expected to stimulate economic growth and create new opportunities across various sectors.

The new venture will fall under ADQ’s infrastructure and critical minerals cluster, which already includes investments in companies like Australian infrastructure investor Plenary Group. This cluster approach allows ADQ to consolidate its investments in related sectors and leverage synergies between them.

This collaboration between ADQ and Orion marks a significant development in the global mining landscape. The substantial investment, coupled with the strategic focus on emerging markets and critical minerals, positions the joint venture as a key player in the industry. The move is also a testament to Abu Dhabi's proactive approach to economic diversification and its commitment to securing its future in a rapidly changing world.