Champion Iron Project Overview and Cost Structure
HIGH PURITY IRON IS CRITICAL FOR THE ENERGY TRANSITION
2,500
1.5°C pathway crude steel production by technology mix
(Million tonnes annually and market share)
25%
2,000
5%
19%
24%
1,500
-0%
41%
48%
1,000
3%
71%
18%
500
20%
0 0%
2022
30
35
40
Scrap-EAF
SAF-BOF 1
BF-BOF
DRI-EAF
10%
18%
45
2050
BF-BOF CCUS²
CHAMPION IRON
TSX: CIA | ASX: CIA | OTCQX : CIAFF
→ To decarbonize the steel industry, a material
transition away from BF-BOF, utilizing coal, to EAF
is to occur by 2050
→ Due to limited availability of scrap steel,
traditionally used in EAFS, high-quality DRI will be
required to complement and supplement the
industry's supply chain to achieve the emission
reduction targets in line with the 1.5°C pathway
→ DRI-EAF steelmaking is expected to increase in
market share from 5% to 25% by 2050
→ With several DRI-EAF projects under construction,
global DR quality iron ore demand is expected to
be at a deficit of more than 100 Mtpa by 20313
High purity iron ore is to be required across all steelmaking methods to reduce emissions
Sources: Champion Iron Limited, Minespans data
Notes: 1 Submerged Arc Furnaces | 2 Carbon capture, utilization and storage 13 McKinsey & Company (The Resilience of Steel: Navigating the Crossroads)
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