Nippon Steel Corporation has signed a master agreement with Champion Iron Limited (CI) and Sojitz Corporation to acquire a stake in the Kamistiatusset Iron Ore Project (Kami Project) in Newfoundland and Labrador, Canada. The project, owned by CI, is under consideration for development, with a feasibility study now underway.
Following the fulfillment of all conditions, the three companies have formed the Kami Iron Mine Partnership to advance the project. Through its subsidiary, NS Canadian Resources, Nippon Steel has acquired a 30pct interest by making an initial payment of CAD 42 mln (USD 30 mln) toward a total consideration of CAD 150 mln (USD 108 mln). The remaining CAD 108 mln (USD 78) will be invested subject to the feasibility studys outcome.
The Kami Project will produce high-grade, DR-grade iron ore, a globally scarce material essential for direct reduced iron production. Nippon Steel said the investment strengthens its raw material security while enhancing its earnings base.
1 USD / 1.39 CAD
