The Kami open-pit iron ore mine is located to the south of Labrador City and Wabush in the province of Newfoundland and Labrador. Credit: Stantec
Nippon Steel said on Tuesday it had bought a 30% stake in Canada’s Kami iron ore project, forming a joint venture with Australia’s Champion Iron and Sojitz to secure high-grade ore supplies for direct reduced iron.
Japan’s top steelmaker paid C$42 million ($30.2 million) of the total C$150 million consideration through its unit NS Canadian Resources, with the remaining C$108 million to be paid pending an additional investment decision based on a feasibility study.
The deal follows a December agreement under which Nippon Steel and trading house Sojitz agreed to buy a 49% interest in the project from Champion Iron for C$245 million.
Under a new joint venture, Kami Iron Mine Partnership, the companies will advance a feasibility study for the project in…
