Nippon Steel buys 30% stake of Canada’s Kami iron ore project
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The news: Japan’s Nippon Steel acquired a 30% stake in the Kami iron ore project in Canada, creating a joint venture with Australia’s Champion Iron and Sojitz.
The numbers: Japan's top steelmaker paid CAD42 million ($45.65 million) of the total CAD150 million consideration through its unit NS Canadian Resources, with the remaining CAD108 million to be paid pending an additional investment decision based on a feasibility study.
The context: The deal follows an agreement announced in December, under which Nippon Steel and trading house Sojitz agreed to buy a 49% interest in the project from Australia’s Champion Iron for CAD245 million.
Under the new joint venture, Kami Iron Mine Partnership, the companies will advance a feasibility study for the project in Newfoundland and Labrador toward its development and operation.
The iron ore produced at the Kami Project is a high-grade, globally scarce resource suitable for the production of direct reduced iron, Nippon Steel said.
In June, Nippon Steel closed its USD14.1 billion takeover of United States Steel Corporation, creating the world's second-largest steelmaker and giving the Japanese company a foothold in the US.
The sources: Nippon Steel, Champion Iron
