Champion Iron shares rise on partnership with Nippon, Sojitz
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More news: Champion Iron shares gained in morning trade on the ASX after the iron ore miner agreed to sell a 49% stake of its Kamistiatusset project in Canada to Nippon Steel and Sojitz Steel for $275 million.
Champion Iron shares were up 2% to $5.77 by 11:15am AEDT, making it the second best performing ASX 200 stock as the wider index slumped 1.9%.
Champion Iron partners with Nippon, Sojitz on Kami project
The news: Champion Iron has agreed to partner with Nippon Steel Corporation and Sojitz Corporation for the joint ownership and development of its Kamistiatusset (Kami) iron ore mine in Canada.
The numbers: Japan-based Nippon and Sojitz will initially contribute C$245 million ($275 million) for 49% of the interest in the partnership, with Montreal-based Champion retaining a 51% stake. Champion may also receive future payments based on the project's financial performance.
Nippon (30%) and Sojitz (19%) will hold minority positions in the project, with the companies entitled to proportional allocations of Kami's iron ore production.
The context: The partnership, which is expected to be finalised in the first half of 2025, will see Champion continue to operate the Kami project, overseeing its potential development and future operations.
Champion said the three companies will share development and construction costs of the project should they make a positive final investment decision (FID) following the completion of a definitive feasibility study (DFS). The DFS is expected to be completed in mid-2026 and the projected construction period is estimated at 48 months following FID.
What they said: "The financial support and collaboration provided by the partners mark an important milestone as we work on elements required to optimise the project towards a potential FID," Champion's CEO David Cataford said.
"With the partners' successful history in the steel industry and Champion's stewardship in operating projects in the region, Kami could stimulate significant economic growth in Labrador West and is an opportunity to contribute to the decarbonisation of steelmaking globally."
The source: ASX announcement
