Last December, Japan's Nippon Steel and Sojitz purchased a combined 49% interest in the Kami iron ore project from Australia’s Champion Iron for C$245 million. Nippon Steel announced on September 30 that it has acquired a 30% stake in this project, starting a joint venture with Champion Iron and Sojitz.

The new joint venture, called Kami Iron Mine Partnership, will conduct a feasibility study for the development of this project in Canada's Newfoundland and Labrador. Nippon Steel said the project’s high-grade iron ore is a scarce resource well-suited for producing direct reduced iron.

Direct reduced iron, together with high-quality scrap, is key to making high-grade steel in large electric arc furnaces, which Nippon Steel plans to build to cut carbon emissions. 

The company has also been increasing its stakes in coking coal and iron ore assets to secure a stable supply of raw materials.