Champion Iron (ASX:CIA) announces it has produced direct reduction (DR)-quality iron ore from its direct reduction pellet feed (DRPF) project at the Bloom Lake mine in Québec.
The company expects to ship at least 160,000 wet metric tonnes of DR-quality iron ore in a Capesize vessel in Q3 2026.
Champion notes the DRPF project was completed within the recently estimated $500 million budget and is expected to gradually increase in capacity to reach commercial production toward the end of the company’s current financial year.
Parallel to the project commissioning, it has also entered into a commercial agreement covering a portion of its expected near-term capacity; and is actively advancing discussions with several prospective customers globally to secure agreements for its remaining volumes.
Chief executive David Cataford says the initial production of DR-quality iron ore represents a “defining” milestone in the project.
“Our commercial agreement with a globally recognised group confirms the growing demand for DR quality iron ore,” Cataford says.
“As we progress towards commercial production, we seek to build long-term partnerships with steelmakers, while strengthening Québec’s and Canada’s position as a key player in the low-carbon steelmaking supply chain.”
The DRPF project is designed to upgrade half of Bloom Lake’s capacity to a DR-quality pellet feed iron ore grading up to 69% iron, with combined silica and alumina content below 1.2%.
The project is likewise expected to position Bloom Lake among the ‘highest-purity’ iron ore producers globally.
Champion Iron is an iron ore producer with operations in Canada and Norway. It owns and operates the Bloom Lake Mining Complex on the south end of the Labrador Trough in Québec.
Write to Paula Fabe at Mining.com.au
Images: Champion Iron
