Nippon Steel and Sojitz to acquire 49% stake in Champion Iron's Canadian project.

From Investing.com: 2024-12-18 22:45:44

Japanese steelmaker Nippon Steel and trading house Sojitz will acquire a 49% stake in Australia’s Champion Iron’s Kami project in Canada for A$245 million. Nippon will hold 30% and Sojitz 19%, with future contributions expected to reach A$490 million. Nippon aims to increase global production capacity to 100 million tons yearly.

Nippon Steel will invest C$150 million for its Kami stake, with a total development cost estimate of nearly C$4 billion. The project, an advanced-stage open-pit iron ore mining venture, offers a chance to secure direct reduction iron ore supply for high-grade steel production. The feasibility study is set for completion in mid-2026.

Champion Iron’s CEO highlighted the importance of the partnership with Nippon and Sojitz, emphasizing Kami’s potential for future production. The project, located in Newfoundland and Labrador near Champion’s Bloom Lake mine, is expected to have a four-year construction period post final investment decision. Nippon Steel is working on securing U.S. approval for its acquisition of U.S. Steel.



Read more at Investing.com: Nippon Steel, Sojitz to take 49% stake in Champion Iron’s Canada project By Reuters