Abu Dhabi fund ADQ, Orion team up to invest $1.2 bn in metals, mining

Abu Dhabi sovereign wealth fund ADQ has teamed up with Orion Resource Partners to form a joint venture that will invest in metals and mining, ADQ said on Thursday, as the wealth fund expands its critical minerals portfolio. 

Under the 50-50 JV, which will be based in the UAE's capital, ADQ and global investment firm Orion will initially invest $1.2 billion over four years in mining companies in emerging markets in Africa, Asia and Latin America, the fund said in a statement. 

The partners will invest through different asset classes, including equity, senior debt and production-linked instruments, such as royalties. 

Established in 2018, ADQ has a broad portfolio of domestic assets, including energy, healthcare, as well as transport and logistics such as Abu Dhabi state carrier Etihad Airways. 

The fund had $225 billion in assets under management at the end of June and has been investing in sectors that could help oil-rich Abu Dhabi speed up economic diversification plans aimed at cutting reliance on oil revenues. 

"Downstream sectors such as manufacturing and clean energy are expected to directly benefit from the sourcing of critical raw materials" through the JV, ADQ said. 

It will be part of the wealth fund's infrastructure and critical minerals cluster, which includes Australian infrastructure investor Plenary Group. 

The new office will be headed by Philip Clegg, who has served as Orion's managing partner.