Canadian iron ore producer Champion Iron Limited has secured CAD 245 million in funding from Japan-based steelmaker Nippon Steel Corporation and trading company Sojitz Corporation to advance the Kami Iron Ore Project in eastern Canada’s Newfoundland and Labrador province. This strategic agreement marks a major milestone in developing one of Canada’s high-purity iron ore sources, aligning with global demand for low-emission steelmaking inputs.
A new partnership entity called Kami Iron Mine Partnership has been formed to advance the project. Champion Iron will retain a 51 percent interest in the partnership and will remain operator of the project, with Nippon Steel holding 30 percent and Sojitz holding 19 percent stakes.
In the initial phase of the agreement, the Japanese companies will contribute CAD 68.6 million to the venture, with completion of a definitive feasibility study expected by the end of 2026. A second funding tranche of CAD 176.4 million is expected following a positive interim investment decision, which would trigger pre-construction and development activities. The potential construction period for the Kami project is estimated at 48-months following a positive final investment decision.
The Kami project is planned to have nine million wmt of direct-reduced quality iron ore at or above 67.5 percent Fe content. This high-purity ore is ideal for low-carbon steel production, especially in electric arc furnace (EAF) and hydrogen-based reduction technologies.