The arrival of Simandou’s high-grade iron ore has the potential to alter the landscape of the iron ore markets. This is the final part of a six-part interview series, in which Platts News has talked to magnetite ore producers to discuss their strategy and competitive advantage.

The emergence of high-grade projects like Simandou led Champion Iron to upgrade half its iron ore and diversify exports away from China into the Middle East and North Africa, according to CEO David Cataford.

Champion has invested about $500 million in upgrading its second plant at Bloom Lake in Quebec to produce direct-reduction-quality pellet feed iron ore at about 7.5 million metric tons per year, grading up to 69% Fe, Cataford told Platts, part of S&P Global Energy.

The upgraded plant will start producing the new 69% product in the second quarter of 2026, as Champion seeks to upgrade half its production from Bloom Lake in Quebec to capitalize on the steel industry’s efforts to cut emissions and related impact on the raw material supply chain.

The new product will have a combined silica and alumina content below 1.2%.

Champion began test work on the upgrade conversion concept six years ago, before the feasibility study.

However, Cataford revealed to Platts that the planned production of high-grade ore “straight from the mine without requiring any processing” at Simandou in Guinea catalyzed Champion’s move to upgrade its own Bloom Lake material.

“The last thing we wanted to do is to continue selling sinter fines from Canada because … we’re not in a cost-advantaged position,” Cataford said.

Meanwhile, Rio Tinto Group said in July 2024 that all conditions had been satisfied to develop the long-delayed Simandou, which former CEO Jacob Stausholm called the world’s biggest greenfield mining and infrastructure project.

The first cargo was finally sent in December 2025 for Simandou, which offers 65% Fe high-grade ore.

With these developments emerging a few years ago, “what we decided to do is say, well, we’ve got one of the cleanest and purest iron ores in the world. Why don’t we upgrade it to 69% to be able to ship to market?” Cataford told Platts.

“We’re actually going to sell to steelmakers that use electric arc furnaces and go towards the DRI route. So even with these other projects either ramping up or coming online, increasing the grade to 69% is what differentiates us in the high-grade space,” Cataford said.

“Anyone that uses DRI process and then goes towards EAFs or even DRI that then they want to use into blast furnaces, as long as you want to go towards that technology, you will require a higher grade iron ore — a DR grade type iron ore — and we’re going into that market. So it’s a very niche market that fetches higher premiums.”
Strategic shift

The upgrade investment to convert Bloom Lake ore from 66.2% to 69% Fe, “making it one of the highest grade iron ores in the world,” changes Champion’s scope from shipping many tons to China, to instead shipping the upgraded tons to Europe, the Middle East and North Africa, where much DR capacity is underway.

While the improvement to 69% is “only a 3% difference, it changes completely the type of clients that we can target and the premiums that we’ll get to,” Cataford said.

The move will significantly reduce shipping costs compared to shipping from China, which is much farther away from Quebec’s Sept-Îles port, from which it exports Bloom Lake product, Cataford said.

New plants are appearing in Egypt, Turkey and Algeria, which represent “markets that don’t necessarily buy a whole lot of iron ore,” but enable Champion to sign smaller contracts, for whom such deals are still material, Cataford said.
“When we look at those markets, they are very interesting for us because they’re well-positioned geographically to benefit from lower shipping rates,” Cataford said.

As well as China, Champion currently sells its Bloom Lake product to Japanese entities Nippon Steel, JFE Steel and Kobe Steel, as well as customers in South Korea, India, the Middle East and Europe, according to Cataford.

Further upside
Champion also controls significant resources and reserves in the Labrador Trough, with similar low levels of contaminants to Bloom Lake. This gives it the optionality to consider additional growth projects to produce DR-grade iron ore, according to the company.

Accordingly, Champion recently announced a partnership with Nippon Steel and Sojitz Corp. to consider developing the Kamistiatusset iron ore project a few kilometers from Bloom Lake.
Nippon acquired a 30% stake in Kamistiatusset in southwestern Newfoundland, near Quebec’s eastern border, in September 2025, with Sojitz holding 19% of the asset. A definitive feasibility study is due by the end of 2026.

Champion is again targeting North Africa and the Middle East for that project, Cataford said.
Source: Platts