Nippon Steel and Sojitz to Acquire 49% Stake in Champion Iron's Canadian Project

Champion Iron, the Australian company, has announced the acquisition of a 49% stake in the Kami project in Canada from Japanese steel producer Nippon Steel and trading company Sojitz for 245 million Australian dollars (152 million US dollars).

According to Champion's statement, Nippon and Sojitz will hold shares of 30% and 19%, respectively, in the iron ore project located in northeastern Canada, and they will share the development and construction costs based on their stakes in the mine.

It was noted that the Kami project, which Champion acquired in 2021, is expected to receive up to 490 million Australian dollars (305 million dollars) in future contributions from Nippon and Sojitz.

Currently, Nippon Steel has a global production capacity of 65 million tons per year and aims to increase this figure to 100 million tons in the long term. Nippon Steel estimates that the total cost of the Kami project for all partners will be approximately 4 billion Canadian dollars.