Champion Iron Limited has entered into a binding agreement with Nippon Steel Corporation and Sojitz Corporation to jointly develop the Kamistiatusset Project (Kami Project). The partners will initially contribute USD 245 mln for a 49pct stake in the project, with Champion potentially receiving future payments based on the project’s financial performance once operational.
The Kami project is a direct reduction (DR) grade quality iron ore project south-east of the Bloom Lake mine, Quebec, Canada.
Following a positive final investment decision after the completion of a feasibility study, the partners will share development and construction costs according to their ownership interests. The project is expected to receive up to USD 490 mln in contributions before Champion needs additional capital for its pro-rata share.
The definitive feasibility study is scheduled for completion by mid-2026, with construction expected to take 48 months following the investment decision. Upon closing, Champion will hold a 51pct stake in the Kami Project, while Nippon Steel and Sojitz will hold 30pct and 19pct, respectively. The partners will receive a share of iron ore production proportional to their ownership.
The transaction, expected to close in the first half of 2025, is still subject to negotiations and final agreements, including partnership terms and rights.
Champion Iron, through its subsidiary Quebec Iron Ore Inc., owns and operates the Bloom Lake Mining Complex, which produces high-grade iron ore from its two concentrators. The company also holds a portfolio of exploration projects in the Labrador Trough, including the Kami Project and the Cluster II properties.
