Nippon buying stake in Canadian iron ore project

Champion “may receive future payments based on the project’s financial performance, if and when in operation,” according to a statement by the mining company on Wednesday.

The Kamistiatusset Project (“Kami”) is a direct-reduction (DR) grade quality iron ore project in southwestern Newfoundland, near Quebec’s eastern border. It is located near Champion’s Bloom Lake mine.

A 2024 pre-feasibility study detailed a 25-year life of the mine “with average annual DR quality iron ore concentrate production of approximately 9.0 million wet metric tons per annum grading above 67.5% Fe.”

“Securing the supply of direct-reduction quality iron ore is a critical strategic advantage for Nippon as we pursue our transition to reduce emissions in steelmaking,” Nippon’s Managing Executive Officer Ryuichi Nagai said.

“Kami benefits from one of the best resources and is one of the most advanced direct-reduction quality iron ore projects globally,” he added.

A definitive feasibility study is anticipated to be completed in mid-2026. The project’s construction period is estimated at 48 months after the “positive final investment decision,” where the companies choose to move forward with the project.

The anticipated closing date of the transaction is in the first half of 2025. It remains subject to negotiation and entering into definitive agreements, Champion said.

Additional terms of the deal are available here.

Champion is a miner with head offices in Montreal and Toronto, Canada, and Rozelle, New South Wales, in Australia.