Nippon Steel signs agreement to acquire stake in Canada’s Kami iron ore project

Core Insights - Nippon Steel Corporation has signed a master agreement to acquire a stake in the Kamistiatusset (Kami) iron ore project in Canada, aiming to secure raw materials for direct reduced iron (DRI) production [1][3] - A joint venture named Kami Iron Mine Partnership has been formed with Champion Iron and Sojitz Corporation, with Nippon Steel acquiring a 30% stake [2][3] - The initial payment for the acquisition is C$42 million ($30.2 million), with a total consideration of C$150 million, contingent on further investment decisions based on a feasibility study [3] Company Strategy - Nippon Steel plans to construct large electric arc furnaces to produce high-grade steel, which requires DRI and high-quality scrap, as part of its strategy to lower carbon emissions [4] - The company has been increasing investments in coking coal and iron ore mines to ensure a steady supply of essential raw materials, following its recent $14.9 billion acquisition of US Steel [4]