Nippon Steel Corp. and trading house Sojitz Corp. are teaming up with Champion Iron Ltd. to develop a high-grade iron ore mine in Canada, positioning themselves for the steel industry’s shift toward greener production methods.
The Japanese companies will take a combined 49% stake in the Kamistiatusset project in Newfoundland and Labrador, with Champion retaining 51%, according to statements Thursday. The venture requires an initial investment of CAD 150 million (US$111 million), with Nippon Steel holding 30% and Sojitz 19%.
The project targets production of 9 million tons annually of premium iron ore with more than 67.5% iron content – a grade that represents less than 5% of global supply. This high-purity ore is crucial for producing steel through electric arc furnaces, which can cut CO2 emissions to one-fourth of traditional blast furnaces.
Total development costs could reach CAD 1.16 billion for Nippon Steel’s portion alone. Construction will take 48 months after final investment decisions, which hinge on completion of a feasibility study.
The mine sits just 20 kilometers from Champion’s existing Bloom Lake operation. Sojitz, which has distributed Bloom Lake’s ore to Japanese customers since 2011, will handle sales of its portion from the new project.
For Nippon Steel, securing this rare high-grade ore supply supports its strategy to transition some blast furnaces to electric arc furnaces in pursuit of carbon neutrality by 2050.
