Athira Sethu
Kochi, 6 September 2025
Japan’s largest steel producer, Nippon Steel, revealed on Tuesday that it has acquired a 30% stake in Canada’s Kami iron ore project. The transaction is under a joint venture with Australia’s Champion Iron and Japan’s Sojitz. It aims to achieve a stable supply of high-quality iron ore to make direct reduced iron, which is utilized in steel production.
Nippon Steel paid C$42 million (approximately $30.2 million) via its subsidiary NS Canadian Resources in a C$150 million deal. Another C$108 million is paid subsequently, subject to the outcome of a study that will determine the potential of the project.
This investment follows a prior deal in December, when Nippon Steel and Sojitz agreed to acquire a 49% stake in the Kami project from Champion Iron for C$245 million.
The partners will now jointly operate under a new entity called Kami Iron Mine Partnership. They will undertake a study to assess the development of the project in Newfoundland and Labrador, Canada. The ore of this project is held to be of extremely high quality, suitable for the production of direct reduced iron. This iron is required for steel production in large electric arc furnaces that Nippon Steel intends to utilize in a bid to reduce carbon emissions.
Nippon Steel has been interested in acquiring stable sources of fundamental raw materials such as iron ore and coking coal. This extends to recent buying such as its acquisition of U.S. Steel. By investing in these materials, Nippon Steel is attempting to secure reliable supplies for its long-term production purposes.
