Nippon Steel acquires 30% stake in Canadian iron ore project Kami

Japan’s Nippon Steel Corporation has announced the completion of an agreement with Australia’s Champion Iron Limited and Japan’s Sojitz Corporation to acquire a stake in the Kami iron ore deposit in Newfoundland and Labrador, Canada. The parties have formed a joint venture, Kami Iron Mine Partnership, which will be responsible for the preparation and development of the project.

Under the agreement, Nippon Steel, through its subsidiary NS Canadian Resources, acquired a 30% stake in the joint venture. The company’s initial contribution was CAD 42 million out of a total of CAD 150 million. The remaining funds, approximately CAD 108 million, will be invested after a final investment decision is made, which will depend on the results of a feasibility study.

Ore from the Kami deposit is of high quality and in short supply on the world market. It is suitable for the production of direct reduced iron (DRI), which, along with high-quality scrap, is considered a key raw material for smelting high-quality steel in electric arc furnaces. Nippon Steel plans to increase the share of this type of production, as it significantly reduces carbon emissions.

The company emphasizes that cooperation with Champion Iron and Sojitz will contribute to the diversification of supply sources and the strengthening of the raw material base. For Nippon Steel, this step is part of a broader strategy to create a stable supply chain for iron ore and coking coal, which are necessary for the production of low-carbon steel.

As a reminder, Nippon Steel plans to double its steel production in the US within 3-5 years. By 2028, the company plans to invest $11 billion in modernizing US Steel’s outdated production facilities and improving its product range.