The Kami project, owned by Champion Iron (CI), produces high-quality direct reduced (DR) iron ore, a rare resource worldwide, particularly suitable for direct reduced iron (DRI) production. The mine is being evaluated for new development, and a feasibility study is underway for its integration and operation.
Nippon Steel announced that, upon meeting the required conditions, it has formed a joint venture named “Kami Iron Mine Partnership” in cooperation with CI and Sojitz. Through this partnership, the company’s wholly-owned subsidiary, NS Canadian Resources, acquired a %30 stake.
The initial payment for the stake is 42 million Canadian dollars (30.2 million United States dollars). The remaining 108 million Canadian dollars of the total 150 million Canadian dollars consideration will depend on additional investment decisions following the completion of the feasibility study.
By acquiring a stake in the Kami project and forming a partnership with CI and Sojitz, Nippon Steel aims to strengthen its raw material supply and consolidated earnings opportunities for DRI production. DRI combined with high-quality scrap is a critical input for producing high-grade steel in large electric arc furnaces. The company plans to build such furnaces as part of its carbon emissions reduction strategy.
Nippon Steel recently completed the 14.9 billion United States dollars (2.19 trillion Japanese yen) acquisition of US Steel and continues to increase investments in coking coal and iron ore mines to secure the supply of vital raw materials.
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