The completion of a DFS at the Kami project is expected by the end of 2026.
Under the agreement, Nippon Steel and Sojitz will collectively invest C$245 million ($178.4 million) for a 49% stake in the partnership. The initial phase, expected to close in the second half of 2025 pending regulatory approvals and standard conditions, involves a C$68.6 million contribution from the partners. Post-initial closing, Champion Iron will hold a 51% interest, with Nippon Steel and Sojitz owning 30% and 19%, respectively. A second phase, contingent on the initial closing and a positive interim investment decision, will see an additional C$176.4 million invested following the completion of a definitive feasibility study (DFS) by the end of 2026. If approved, construction could begin, with an estimated timeline of 48 months after the final investment decision.
The investment supports the project’s progression toward a DFS, focusing on evaluating its feasibility and economic potential. Champion Iron’s CEO, David Cataford, stated: “The framework agreement marks a significant milestone for the Kami Project, establishing a clear structure to advance its evaluation alongside trusted partners who share our long-term vision for the growing demand for high-purity iron ore and our commitment to positively impact the communities where we operate.” He added: “Supported by anticipated proceeds and the partners’ pro-rata contributions of future expenditures, the partnership will enable us to advance the project without impacting our financial liquidity in the foreseeable future.”
Champion Iron is committed to environmental and community considerations, actively progressing an environmental impact statement and engaging with local stakeholders, including indigenous groups, to ensure positive regional outcomes. The company is also collaborating with government departments to secure support, particularly as high-purity iron ore has been classified as a critical mineral. “As we move forward, our focus will shift to identifying opportunities to enhance the project’s economics while remaining committed to our disciplined capital allocation strategy,” Cataford noted.
The Kami Iron Mine Partnership reflects a strategic effort to meet the rising demand for high-purity iron ore while fostering sustainable development. By leveraging the expertise and financial contributions of Nippon Steel and Sojitz, Champion Iron aims to advance the project efficiently, maintaining its focus on economic viability and community benefits in Newfoundland and Labrador.
