Japanese steelmaker Nippon Steel Corporation has announced that it has finalized a master agreement with Canadian iron ore company Champion Iron Limited (CI) and Japan trading company Sojitz Corporation to acquire a 30 percent strategic stake in the Kamistiatusset Iron Ore Project (Kami project) located in Newfoundland and Labrador, Canada.
Through its wholly owned subsidiary NS Canadian Resources, Inc., Nippon Steel has joined CI and Sojitz to form the Kami Iron Mine Partnership. The Japanese steelmaker has made an initial payment of C$42 million toward a total investment of C$150 million, with the remaining C$108 million to be paid upon a positive final investment decision (FID) following the feasibility study.
Securing DR-grade iron ore for decarbonization
The Kami project is designed to produce high-grade direct reduced (DR) grade iron ore, a critical raw material for low-carbon steelmaking using direct reduced iron (DRI) technology.
Global supply of DR-grade ore remains scarce, while demand is rising sharply as steelmakers transition from blast furnaces to hydrogen-based or natural gas-based DRI and electric arc furnaces (EAF) to cut emissions.
Nippon Steel’s investment aligns with its long-term decarbonization strategy, ensuring access to stable, high-quality iron ore feedstock to support both its domestic Japanese plants and overseas operations as they shift toward sustainable production routes.
Joint venture to advance project development
The Kami iron mine partnership between Nippon Steel, Champion Iron, and Sojitz will oversee project development, feasibility studies, and operational planning.
The feasibility study will define the mine development strategy, production timelines, and required infrastructure. If successful, the project will become a key raw material supply base for Nippon Steel’s future DRI-EAF steelmaking operations.
The partnership aims to unlock the full potential of the Kami deposit and contribute to the global green steel value chain.