Name of the Project
Kamistiatusset iron-ore project.

Location
Western Labrador, Canada.

Project Owner/s
Iron-ore mining and development company Champion Iron.

Project Description
Champion Iron has evaluated the construction of mining and processing facilities to produce direct reduction- (DR-) grade pellet feed iron-ore from the mining properties of the Kami mine.

The prefeasibility study, completed in March 2024, details an operation with a 25-year life-of-mine (LoM), with average DR quality iron-ore concentrate production of about 8.6-million tonnes a year at more than 67.5% iron.

The project is planned as a conventional openpit mine, combined with an in-pit crushing system (IPCS) for waste rock. Mining operations will use drills and haul trucks, together with hydraulic shovels, and a semimobile waste IPCS, with the ore crusher located at the pit exit on the east side.

The project contains the Rose pit, which is to be divided into three phases. The peak mining rate is expected to be 81-million tonnes a year over the LoM.

A total of 643-million tonnes of ore will be mined at an average total iron-ore grade of 29.2%, with a total of 1.02-billion tonnes of combined waste and overburden, resulting in a stripping ratio of 1.6 t of waste per tonne of ore mined.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
A pretax net present value, at an 8% discount rate, of $1.48-billion and an internal rate of return of 12.1%, with a payback of seven years, have been estimated for the project.

Capital Expenditure
$3.86-billion.

Planned Start/End Date
The project is expected to take 48 months to complete, following a final investment decision.

Latest Developments
Champion Iron has reported that Japanese steelmaker Nippon Steel and trading house Sojitz will buy a 49% stake in the Kami project for A$245-million ($152-million).

Nippon and Sojitz will hold a 30% and 19% stake in the iron-ore project respectively, and share development and construction costs based on their share in the mine, according to a statement by Champion.

Kami is also expected to receive as much as A$490-million ($305-million) through future contributions from Nippon and Sojitz.

Nippon wants to optimise its supply chain from Kami. Nippon Steel, which has a global production capacity of 65-million tons a year, wants to raise that to 100-million tons a year in the long term.

It is trying to secure US approval for its acquisition of US Steel, a key part of that strategy, and has also been looking to buy stakes in coking coal and iron-ore mines to ensure a stable supply of essential raw materials.

Direct reduced iron, along with high-quality scrap, are necessary for the production of high-grade steel from large electric arc furnaces, which Nippon Steel aims to build to reduce carbon emissions.

Nippon will invest C$150-million ($104-million) for its stake in Kami while incurring about C$1.16-billion in development costs by the project's completion, the company has said. The costs will be subject to investor approval of the project's development and the results of a future feasibility study, expected be completed in mid-2026.

Construction will take about four years once the final investment decision has been made.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Champion Iron, tel +1514316 4858 or email info@championironmines.com.