Nippon Steel Corporation has established a joint venture with Champion Iron Limited and Sojitz Corporation to acquire an interest in the Kamistiatusset Iron Ore Project in Canada’s Newfoundland and Labrador.
Through its wholly owned subsidiary, NS Canadian Resources, Inc., Nippon Steel has acquired a 30% interest in the newly formed Kami Iron Mine Partnership after making an initial payment of C$42 million.
This payment is part of a total consideration of C$150 million.
The remaining C$108 million will be paid after an additional investment decision is made based on the results of a feasibility study that the partnership will advance.
The Kami Project, owned by Champion Iron, is currently under consideration for new development. The iron ore from this project is a high-grade, globally scarce resource suitable for the production of direct reduced iron.
Through this acquisition and partnership, Nippon Steel aims to secure raw materials for direct reduced iron production and enhance its consolidated earnings base.
