Abu Dhabi deepens mining push with $1.2 billion joint venture

Abu Dhabi sovereign wealth fund ADQ announced a new venture to invest $1.2 billion in the metals and mining sector over four years, as the emirate deepens its push to secure supplies of critical minerals.

ADQ and New York-headquartered Orion Resource Partners have set up a 50-50 partnership that’ll invest in mining companies through equity, debt and production-linked instruments, such as royalties, according to a statement on Thursday.

Based in the emirate’s financial hub ADGM, the joint venture will initially focus on investments in Africa, Asia and Latin America. 

This is the latest push by Abu Dhabi to secure access to strategic raw materials. A unit of International Holding Co. invested $1.1 billion in a copper mine in Zambia in 2023. It also explored investing in a tin mine in the Democratic Republic of Congo, Bloomberg News reported in November. 

ADQ recently also established an infrastructure and critical minerals cluster. The joint venture — Orion Abu Dhabi — will be part of that cluster along with the wealth fund’s investments in firms such as Alpha Dhabi Construction Holding and Plenary Group, according to the statement. 

“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,” Hamad Al Hammadi, the $249 billion wealth fund’s deputy group chief executive officer, said in the statement. 

Philip Clegg, who has served as managing partner at Orion Resource Partners, will head the Abu Dhabi office.