Nippon Steel said Thursday that it will set up a joint venture with two companies to participate in an iron ore mine development project in Labrador, eastern Canada.
The two partners are Canadian mining company Champion Iron and Japanese trading company Sojitz. The joint venture will develop and operate the Kamistiatusset iron ore mine, owned by Champion Iron.
Nippon Steel will acquire a 30% interest in the Kamistiatusset project. Its investment is seen exceeding ¥140 billion, including development costs.
The Tokyo-based company is developing steel manufacturing technologies using hydrogen for net zero carbon emissions. It aims to secure high-quality iron ore stably over the long term through the project.
Nippon Steel will invest about ¥4.5 billion to found the joint venture by June 2025. It will put in an additional ¥11.7 billion when the project is judged to be feasible.
Nippon Steel expects to spend about ¥130 billion to develop the mine.
Sojitz will take a 19% interest in the project.
