Australia’s Champion Iron announced that Japanese firms Nippon Steel and Sojitz have agreed to acquire a combined 49% stake in the company’s Kami iron ore project in Canada for A$245 million ($152.39 million). The deal will significantly boost the development of the Kami project, which is in Newfoundland and Labrador province, south of Labrador City and Wabush.

As part of the investment, Nippon Steel, Japan's largest steelmaker, will take a 30% stake in the project, while Sojitz, a leading Japanese trading company, will hold a 19% share. The two companies will also provide up to A$490 million in contributions to the project, a critical move that underscores the strategic importance of the Kami mine for Japan's iron ore supply chain. The funds will be directed toward the further development of the Kami project, which promises a long mine life and significant potential for meeting Japan's future iron ore needs.

Nippon Steel will invest C$150 million ($103.84 million) for its 30% stake in the Kami project. In addition, the companies will incur about C$1.16 billion in development costs for the project’s completion. However, these costs are contingent upon investor approval of the project’s development and the results of an upcoming feasibility study.

Nippon Steel, which is seeking to optimize its global supply chain, sees the Kami mine as a key source of stable and reliable iron ore. “The Kami project offers a long mine life and the potential to secure a key asset in our supply chain,” said Ryuichi Nagai, managing executive officer at Nippon Steel. This partnership with Champion Iron highlights Nippon’s commitment to strengthening its iron ore sourcing strategy, ensuring a steady and sustainable supply for its steel production operations.

Despite the new ownership structure, Champion Iron will maintain operatorship of the Kami project, overseeing the development and future operations. Champion will continue to manage the mine's growth and handle critical decisions regarding its future, including potential expansions. The agreement allows Champion Iron to maintain control of the project while benefiting from the financial backing and expertise of its Japanese partners.

The Kami project, which is located in a key iron ore-rich region of Canada, is expected to become a significant contributor to Champion Iron’s portfolio. Once fully operational, the mine will provide a steady stream of high-quality iron ore to meet growing global demand, particularly for steel manufacturing in Japan and other parts of Asia. The Kami project is poised to play an essential role in ensuring the sustainability of iron ore supplies as the global demand for steel remains strong.