Champion Iron has concluded a final framework agreement with its two Japanese partners, who will pay $ 245 million to develop the Kami deposit between Fermont and Labrador City. Nippon Steel and Sojitz Corporation will in return obtain a global participation of 49% in a new entity created this iron ore project.
This is a final signature after the announcement of intent in December 2024, of the three companies. Champion, which operates the Lake Bloom mine in Fermont, will hold a 51% stake in Kami Iron Mine Partnership. Japanese Steel and Sojitz will hold minority positions of 30% and 19%, respectively.
Long -term common vision
Japanese Steel is one of the largest steel producers in the world and the largest steelworker in Japan. The Sojitz group is made up of approximately 400 subsidiaries and affiliated companies located in Japan and all over the world, which develop a wide range of international activities. Sojitz has been acting as a trading partner for champion since the Lac Bloom mine is put into service in 2018.
“The framework agreement marks an important step for the KAMI project by establishing a clear structure to progress with trust partners, who share our long-term vision on the growing demand for high purity iron ore, as well as our commitment to have a positive influence within the communities in which we exercise our activities. As we advance, we will focus on finding opportunities to improve the economic parameters of the project, while remaining determined to respect our disciplined capital assigning strategy, “said Champion’s Chief Executive Officer David Cataford
A mine for 25 years
The Kami site is located near the company’s mining facilities at Lake Bloom. The prefeisability study published last March describes a deposit for an annual production of high purity iron ore of 9 million metric tonnes for an operating period of 25 years.
The necessary investments are around 3.7 billion dollars. The final feasibility studies should be published in 2026. The construction of the necessary mining installations is estimated at 4 years.
The creation of the new Kami Iron company will be in two stages. Champion will remain responsible for the exploitation of the Kami project and supervise its potential development and its future operations. A management committee made up of six representative members The three partners will be appointed.
IRON champion and its subsidiary of Quebec iron ore pursue discussions with the various levels of government, in particular in order to obtain support following the recent addition of high purity iron ore to the lists of critical minerals by the parliaments of Canada, Newfoundland and Labrador and Quebec.
