Nippon Steel completed the first phase of its investment in Canada’s Kami iron ore project, paying C$42 million ($30.2 million) for a 30% stake through its NS Canadian Resources unit. The Japanese steelmaker will contribute another C$108 million ($77.8 million) once partners approve a feasibility study expected by late 2026.
The transaction, which follows a December framework agreement valued at C$245 million ($176.4 million) for a combined 49% stake with trading house Sojitz, creates Kami Iron Mine Partnership. Australia’s Champion Iron retains 51% ownership of the Newfoundland and Labrador deposit.
Nippon Steel touts the ore’s high iron content—above 67.5%—as critical for direct reduced iron production needed in electric arc furnaces. The company aims to use these facilities to lower emissions, though the technology remains capital-intensive and unproven at scale for premium steel grades.
The investment marks Nippon Steel’s latest effort to secure raw materials following its contentious $14.9 billion acquisition of U.S. Steel, which closed in June after extensive political wrangling. That deal required a “golden share” giving Washington veto power over key decisions.
Kami’s development hinges on a feasibility study and final investment approval. The project would require roughly C$3.9 billion ($2.8 billion) in capital expenditure and four years of construction.
