Nippon Steel, Sojitz to take 49% stake in Champion Iron’s Canada project

(Reuters) – Australia’s Champion Iron said on Thursday Japanese firms Nippon Steel and Sojitz will take up a 49% stake for A$245 million ($152.39 million) in the company’s Kami project in Canada.

The Kami project will also receive up to A$490 million in contributions from Nippon and Sojitz, which will hold a 30% and 19% stake, respectively, in the project.

Nippon, Japan’s largest steelmaker, is looking to optimize its supply chain from Kami, with a long mine life, the company’s Managing Executive Officer Ryuichi Nagai said.

However, Champion will retain operatorship of the project and oversee potential developments and future operations.

($1 = 1.6077 Australian dollars)