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Highlights:

  • Champion Iron rises after announcing AUD 245 million investment in Kami project by Japanese firms
  • Champion Iron shares reach highest level since March 31, extending four-day winning streak
  • Stock remains down over 16% year-to-date despite recent gains

Shares of Champion Iron Ltd (ASX:CIA) rose as much as 4.8% to AUD 5.05 in intraday trading on Monday, marking their highest level since 31 March. The price movement follows the company’s announcement that it has entered into a binding agreement with Japanese partners Nippon Steel Corporation and Sojitz Corporation , who will jointly invest in the company’s Kami iron ore project in Canada. The proposed investment totals AUD 245 million  and will give Nippon Steel and Sojitz a combined 49% interest in the project. At the time of writing, Champion Iron shares were up 3.3%, setting the stock up for a fourth consecutive day of gains. However, the stock remains down more than 16% year-to-date.

Champion Iron stated that the transaction will provide the required capital to support early-stage development of the Kami iron ore project, located in the Labrador Trough of eastern Canada. Nippon Steel and Sojitz will contribute the AUD 245 million in exchange for equity in the project, pending customary closing conditions. The company indicated that the capital will be allocated toward technical studies, permitting, and pre-construction activities. The agreement aligns with the strategic interests of all parties involved, with Nippon Steel securing future supply of high-grade iron ore and Sojitz adding the raw material investments in portfolio.

Champion Iron will retain a 51% interest in the project and remain as the operator. The company mpion Iron is an iron ore exploration and development company listed on the Australian Securities Exchange and Toronto Stock Exchange. The company owns and operates the Bloom Lake Mining Complex in Quebec, Canada. Bloom Lake produces high-grade iron ore concentrate used primarily in steelmaking. Champion Iron acquired the Kami project in April 2021 from Alderon Iron Ore Corporation after the previous owner entered restructuring proceedings. The project is viewed as a complementary asset to Bloom Lake, located nearby in the same mineral belt.

The company’s strategy focuses on supplying high-grade, low-impurity iron ore to meet demand from steelmakers seeking to lower carbon emissions. It aims to capitalise on structural shifts toward greener steel production, where higher-grade feedstock is preferred. Champion Iron shares have faced pressure through much of the 2025 financial year, declining over 16% year-to-date due to fluctuating iron ore prices and broader sentiment around global steel demand. However, the recent announcement appears to have triggered renewed investor interest, with shares now recovering to levels not seen since late March.

At the time of reporting, the Australian dollar stood at approximately CAD 1.3681, affecting cross-border project valuations and investment conversions for Champion Iron. The transaction with Nippon Steel and Sojitz is subject to standard regulatory and closing conditions. Champion Iron said it will provide further updates as the deal progresses and once additional project milestones are reached.