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Champion Iron, Nippon Steel, Sojitz Partner for the Kami Project
07/22/2025 - Champion Iron Ltd. announced it has entered into a framework agreement with Nippon Steel Corp. and Sojitz Corp. to contribute US$245 million for a combined 49% interest in the Kami Iron Mine Partnership.
The companies said the Kami Iron Mine Partnership was formed for the ownership and potential development of the Kamistiatusset iron ore project. Champion will hold 51% equity interest while Nippon and Sojitz will hold 30% and 19%, respectively. The agreement follows the binding agreement made between the companies previously announced in December 2024.
"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,” said David Cataford, Champion’s chief executive officer.
The closing of the transactions will occur in two steps, the company said.
First, the initial closing is subject to clearance from the state administration for market regulation of the People’s Republic of China, in addition to other customary closing conditions. At the time of closing, Nippon and Sojitz will make their initial cash contributions of a combined amount of US$68.6 million. This will go towards the advancement of permitting, community engagement and a definitive feasibility study (DFS) for the project.
Nippon and Sojitz will have an allocation of the iron ore volumes produced from Kami in proportion to their respective interests, the companies said.
They are expected to make further contributions on a pro-rata basis to advance the Kami Project towards a potential interim investment decision (IID) and a final investment decision (FID). The initial closing is expected to occur during the second half of 2025. The DFS is expected to be completed by the end of 2026.
The second closing is subject to the initial closing having occurred, the completion of the DFS, a positive IID working toward an FID and other customary closing conditions. Upon the second closing, Nippon and Sojitz will contribute a combined US$176.4 million to secure their interests in the partnership. The second closing is expected to occur several months after the completion of the DFS.
The partnership will be governed by a management committee of six members: two selected by each company. The Kami Project’s construction period is estimated to be 48 months after a positive FID, the companies said.
"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,” said David Cataford, Champion’s chief executive officer.
The closing of the transactions will occur in two steps, the company said.
First, the initial closing is subject to clearance from the state administration for market regulation of the People’s Republic of China, in addition to other customary closing conditions. At the time of closing, Nippon and Sojitz will make their initial cash contributions of a combined amount of US$68.6 million. This will go towards the advancement of permitting, community engagement and a definitive feasibility study (DFS) for the project.
Nippon and Sojitz will have an allocation of the iron ore volumes produced from Kami in proportion to their respective interests, the companies said.
They are expected to make further contributions on a pro-rata basis to advance the Kami Project towards a potential interim investment decision (IID) and a final investment decision (FID). The initial closing is expected to occur during the second half of 2025. The DFS is expected to be completed by the end of 2026.
The second closing is subject to the initial closing having occurred, the completion of the DFS, a positive IID working toward an FID and other customary closing conditions. Upon the second closing, Nippon and Sojitz will contribute a combined US$176.4 million to secure their interests in the partnership. The second closing is expected to occur several months after the completion of the DFS.
The partnership will be governed by a management committee of six members: two selected by each company. The Kami Project’s construction period is estimated to be 48 months after a positive FID, the companies said.
