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Nippon Steel has acquired a 30% stake in the Kami iron ore project in Newfoundland and Labrador, Canada, through its subsidiary NS Canadian Resources. The investment, valued at CAD 150 million, was made alongside Australia's Champion Iron and Japan's Sojitz. An initial CAD 42 million (USD 30.2 million) has already been paid, with the remaining CAD 108 million to be released once a feasibility decision is finalized. The new venture, called Kami Iron Mine Partnership, will oversee feasibility work on developing the high-grade iron ore project, which is designed to support direct reduced iron production for low-carbon steelmaking.
Nippon Steel has purchased a 30 % ownership stake in Canada's Kami iron ore project, strengthening its access to essential high-grade ore. The project is being advanced in partnership with Champion Iron, which retains 51 % ownership, and trading house Sojitz, which holds 19 %. Nippon Steel made the acquisition through its wholly owned subsidiary, NS Canadian Resources. Advertisement
The total value of the investment is CAD 150 million. Nippon Steel has already contributed CAD 42 million (about USD 30.2 million), while the balance of CAD 108 million will be invested depending on the outcome of a feasibility study. The three companies have now set up a new joint venture, Kami Iron Mine Partnership, to take the project forward and evaluate its development potential.
This transaction follows an agreement reached late last year, under which Nippon Steel and Sojitz committed to acquire a 49 % interest in the Kami project from Champion Iron for CAD 245 million. With this updated arrangement, the project ownership has been finalized at 51 % for Champion Iron, 30 % for Nippon Steel, and 19 % for Sojitz.
The Kami project is located in Newfoundland and Labrador and is considered a resource of strategic importance. Its ore is of high grade and suited for producing direct reduced iron (DRI), which is a key material for low-carbon steelmaking. DRI, along with quality scrap, is increasingly important for use in large electric arc furnaces, which Nippon Steel plans to expand as part of its emissions reduction efforts.
Champion Iron has previously advanced detailed studies on Kami, including pre-feasibility work. These studies suggested capital expenditure requirements of about USD 3.9 billion, with potential mine life of around 25 years and an annual production capacity of nearly 9 million tonnes of iron ore grading over 67.5 % Fe. Depending on market conditions, the project's after-tax net present value has been estimated in the range of USD 541 million to USD 2.2 billion.
Nippon Steel's interest in the project aligns with its broader strategy of securing stable supplies of iron ore and coking coal. The company recently completed the acquisition of U.S. Steel and has been steadily increasing its participation in mining ventures worldwide. Champion Iron, which already operates the Bloom Lake iron ore complex in Quebec, has long-standing ties with Nippon Steel and Sojitz through supply agreements since Bloom Lake's restart in 2018.
Source Reuters
5th Jun, 2025
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