(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.
Nippon will invest C$150 million ($103.84 million) for their stake in Kami, while incurring about C$1.16 billion in development costs by the project’s completion, with the costs subject to investor approval of the project’s development and the results of a future feasibility study, the company said in a statement.
($1 = 1.6077 Australian dollars)
($1 = 154.7000 yen)
($1 = 1.4445 Canadian dollars)
(Reporting by Nichiket Sunil in Bengaluru; Editing by Alan Barona)
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