Japanese companies will also share the costs of development and construction

Japanese steelmaker Nippon Steel and trading house Sojitz will acquire a 49% stake in Champion Iron’s Canadian iron ore project for $152 million. It is reported by Reuters.

Nippon and Sojitz will own 30% and 19% of the shares, respectively, and will share development and construction costs in accordance with their share in the mine, Champion said in a statement.

The Kami facilities, which Champion acquired in 2021, are also expected to receive $305 million from future contributions from Nippon and Sojitz.

According to Nippon Steel CEO Ryuichi Nagai, securing DR quality iron ore is a critical strategic advantage for the Japanese company as it continues its transition to reducing emissions from steel production. The project in Canada allows it to optimize its supply chain.

Nippon is investing $104 million in its stake in Kami and will spend about C$1.16 billion on development by the end of the project, the company said in a statement. The expenditures will depend on the investor’s approval of the project development and the results of a future feasibility study.

Kami is an advanced-stage open-pit iron ore project in northeastern Canada that provides an opportunity to extract raw materials optimal for the production of high quality direct reduced iron.

The ore from here will be used for HBI production rather than as conventional blast furnace feedstock, said Shingo Nakamura, Senior Executive Officer of Nippon Steel.

The feasibility study for the project is expected to be completed in mid-2026, and construction will take about four years after the final investment decision is agreed upon.

JSW Steel will acquire a nearly 67% stake in Australia’s M Res for $120 million. The move is in line with the Indian steelmaker’s efforts to increase its coking coal resources.