Bloom Lake Achieves Direct Reduction Pellet Feed Production
Champion Iron Limited (TSX: CIA, ASX: CIA) has announced the production of direct reduction (DR) quality iron ore from its Direct Reduction Pellet Feed (DRPF) Project at the Bloom Lake mine in Quebec, Canada. The inaugural commercial sale of a Capesize vessel carrying at least 160,000 wet metric tonnes of DR quality iron ore is anticipated in Q3 2026.
Project Completion and Commissioning
The DRPF Project was completed within the recently estimated C$500 million budget and is expected to gradually increase capacity to reach commercial production toward the end of the company's current financial year. Initial production tests were successfully completed in March 2026, with commercial sellable production achieved by the end of calendar Q2 2026.
Technical Specifications
- Product grade: DR quality pellet feed iron ore grading up to 69% Fe
- Contaminant levels: Combined silica and alumina content below 1.2%
- Capacity upgrade: Approximately half of Bloom Lake's 15 Mtpa capacity will be converted to DR quality production
- Global positioning: Expected to position Bloom Lake among the highest-purity iron ore producers globally
Commercial Strategy
In tandem with commissioning, Champion has entered into a commercial agreement covering a portion of expected near-term capacity and is actively advancing discussions with prospective global customers for remaining volumes. The DRPF product could attract a considerable pricing premium over Bloom Lake's currently produced 66.2% Fe concentrate. CEO David Cataford stated that the milestone confirms growing demand for DR quality iron ore and strengthens Quebec and Canada's position in the low-carbon steelmaking supply chain. Champion also completed the acquisition of Rana Gruber in Norway in April 2026, further expanding its high-purity iron ore footprint.
