Champion Iron has partnered with Japanese companies Nippon Steel and Sojitz to secure funding for the development of its Kamistiatusset (Kami) iron ore project in Canada. The deal includes an initial C$68.6 million investment for a 49% stake, with the remaining balance payable upon completion of a feasibility study.
Iron ore miner Champion Iron has struck a C$245 million (A$273 million) deal with a pair of Japan-based multinationals to fund, develop and operate its Kamistiatusset project in Labrador and Newfoundland, Canada . Nippon Steel and Sojitz will outlay an initial C$68.6million to take a 49% interest in the project (30% Nippon and 19% Sojitz ), with Champion to retain the remaining 51% interest and operatorship of the asset. The $176.
4 million balance will be paid upon the completion of a definitive feasibility study. If the partners make a final investment decision, Nippon and Sojitz will share the development and construction costs as per their respective interests. According to Champion, it means Kamistiatusset, known as Kami, will benefit from some $490 million in financial support before the ASX- and TSX-listed company will need to source extra capital for its own share. Kami has estimated resources of 975.5 million tonnes at 29.6% iron and reserves of 643Mt at 29.2% iron. Pre-feasibility work from March outlined a pre-production and ramp-up cost of above $3.8 billion for a project with average annual production of 8.6 million dry metric tonnes (nine million wet metric tonnes) over a 25-year mine life. The base-case development scenario has a post-tax net present value of $541 million and an internal rate of return of 9.8%. The project is a large undertaking, but Champion CEO David Cataford said the company's long-term vision of producing high-purity iron ore was more pertinent than ever given the metal's recent status as a critical mineral in Canada thanks to its potential to decarbonize the steelmaking industry. 'Attracting such industry leaders highlights the rare quality of the Labrador Trough's resources and the region's proven ability in constructing and sustainably operating sizeable high-purity iron ore projects,' Cataford said in a statement to the AS
MINING Champion Iron Kamistiatusset Iron Ore Nippon Steel Sojitz Canada Mining Investment Funding
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