Japan-based Nippon Steel Corporation has signed an agreement with CI and Sojitz to develop and operate the Kamistiatusset Iron Ore Project (Kami Project) in Newfoundland and Labrador, Canada.
The Kami Project, owned by CI, is an advanced-stage open pit iron ore mining project located in eastern Canada. It offers the opportunity to produce iron ore suitable for the production of globally rare high-grade direct reduced iron (DR-grade). In addition, the Kami Project has abundant resources that provide a long-term supply of high-quality DR-grade iron ore.
The company said ‘We have decided to partner and cooperate with CI and Sojitz to develop the Kami Project and move forward with a feasibility study for development and operation, in order to secure the direct reduced iron raw materials required for our future EAF operations,’
Thanks to this partnership, Nippon Steel will be able to consolidate its share in the Kami Project as well as ensure the stable supply of raw materials required for steel production. This will enable Nippon Steel to build a solid consolidated earnings structure by increasing profitability from raw material interests, even after some blast furnaces are converted to EAFs in the future.
The partnership structure of the project, which has an investment amount of 150 million Canadian dollars, will be 51% Champion Iron, 30% Nippon Steel and 19% Sojitz. The project aims to produce 9 million tons of high quality iron ore annually. It is planned to be completed within 48 months after the final investment decision.
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