US-led Orion consortium eyes over US$20 billion for critical minerals projects, targeting South-east Asia
The New York-based private equity firm is also in talks with Indonesia’s Danantara to fund mining projects
[JAKARTA] A consortium led by US private equity firm Orion Resource Partners plans to invest more than US$20 billion in mining projects, with South-east Asia among its top priorities.
This comes as governments scramble to secure critical minerals for the global energy transition.
The consortium, called the Orion Critical Mineral Consortium and backed by the US International Development Finance Corp and Abu Dhabi sovereign wealth fund ADQ, has held “constructive” discussions with several government institutions, including Indonesia’s sovereign wealth fund Danantara, said Orion’s founder and group CEO Oskar Lewnowski.
Orion – a New York-headquartered private investment group and one of the world’s largest private investors focused on mining – is hoping to partner governments to finance strategic mining projects.
“As governments have become increasingly involved in securing critical mineral supply chains, we’ve found that the most effective model is a partnership between governments and private capital,” Lewnowski told The Business Times in an interview.
Responding to BT’s query, Danantara confirmed it continues to evaluate investment opportunities across strategic sectors, including critical minerals, but stopped short of confirming any transaction.
“Danantara continuously assesses a wide range of opportunities and engages with stakeholders across sectors of strategic importance to Indonesia, including critical minerals,” the state investment agency said in a statement.
The discussions come as South-east Asia’s largest economy seeks to attract more Western capital into its mining industry after years of heavy Chinese investment, while maintaining its policy of requiring greater domestic processing of mineral resources.
Indonesia is also seeking to draw more US investment into strategic industries, including critical minerals, following a tariff agreement between Jakarta and Washington earlier this year that aims to deepen bilateral trade and investment ties.
Indonesia holds around 55 million tonnes of nickel reserves, equivalent to about 42 per cent of the global total, according to the US Geological Survey, making it the world’s largest reserve holder. It also ranks among the top 10 producers of copper and bauxite.
Eyes to the East
Orion believes South-east Asia is becoming an increasingly important source of minerals such as nickel, copper and other metals that are essential for electric vehicles, batteries and renewable energy technologies.
Lewnowski said the world will require at least US$800 billion of new mining investment over the next five years to meet growing demand for critical minerals.
The investment push comes as demand for critical minerals surges, driven by the rapid expansion of data centres and hyperscalers, urbanisation, and rising defence spending.
Within that investment cycle, he said, South-east Asia stands out because of its combination of abundant mineral resources and expanding downstream industries.
“When you consider factors such as new discoveries, access to mineral deposits, permitting, workforce availability, power and water infrastructure, South-east Asia has an enormous amount to offer,” he said.
“Indonesia stands out in particular, but Vietnam and the Philippines also have significant potential.”
Orion, which has invested in mining projects across about 30 countries over the past 14 years, focuses on financing projects that are nearing construction rather than early-stage exploration.
The company said it has financed, managed, operated or owned more than 100 mining projects globally, including investments in Brazilian miner Bravo Mining and US-based Thea Energy.
Orion’s typical investments range from US$300 million to US$1.5 billion, with the firm increasingly targeting larger transactions as its funds under management and strategic partnerships expand.
John Dorian, Orion’s portfolio manager for Asia, said the company is carrying out due diligence and awaiting approvals on between five and 10 projects across South-east Asia.
He said many regional mining companies have matured into multibillion-dollar businesses over the past decade and are now seeking fresh capital to finance expansion.
“There are now several multibillion-dollar companies in the precious and base metals sectors which are all seeking to grow, and have significant capital needs,” Dorian said.
He added that Orion is also seeing opportunities among large family owned mining businesses across Indonesia, Vietnam and the Philippines that are looking for long-term growth capital.
Indonesia’s metals sector has undergone a dramatic transformation over the past decade, driven by the government’s push to process minerals domestically rather than export raw ores.
The policy has spurred billions of dollars in investment in nickel smelters and downstream industries, giving rise to a new generation of publicly listed mining and metals companies whose market capitalisations have climbed rapidly on the Indonesia Stock Exchange.
Companies such as Merdeka Battery Materials, Harita Nickel and Amman Mineral Internasional are now among the country’s multibillion-dollar listed resource companies.
Indonesia remains Orion’s most attractive market in the region, supported by the country’s vast mineral reserves, established mining expertise and growing downstream processing industry.
The company said it was comfortable investing alongside government partners, a model it has used in several markets including Australia and the US, although Lewnowski stressed Orion’s investment criteria would remain unchanged regardless of whether Danantara participates in a project.
Beyond South-east Asia, Orion is also assessing investment opportunities in Central Asia, including Kazakhstan and Uzbekistan. In Africa, it is evaluating projects in the copper belt, as well as in Morocco, Namibia and Mali.
