St George Mining (ASX: SGQ) has taken a significant step towards advancing its Araxá niobium-rare earth elements (REE) project in Minas Gerais, Brazil.
The company has signed a crucial technical collaboration agreement with two of Brazil’s leading scientific agencies, EMBRAPII and SENAI, to develop downstream processing and production capabilities.
The agreement aims to create a sustainable process for producing ferroniobium and rare earth products from the high-grade Araxá project.
This collaboration will focus on maximising resource recovery while adhering to stringent environmental, social, and governance (ESG) standards.
John Prineas, Executive Chairman of St George Mining, expressed enthusiasm about the partnership, stating: “The technical collaboration agreement is a key step to support the development of an optimum processing flowsheet for the Araxá project.
“We are delighted to have finalised this agreement with SENAI and EMBRAPII, which has the potential to provide a major breakthrough in the efficiency and sustainability of mining and processing activities at Araxá.”
The cost-sharing structure of the agreement is favourable for St George, with EMBRAPII covering 50 per cent of the costs, SENAI 10 per cent, and St George contributing the remaining 40 per cent.
Importantly, St George will have exclusive rights to commercialise any intellectual property developed through this collaboration for a decade, without any royalties payable to its partners.
This agreement builds upon St George’s previous partnerships in Brazil, including a memorandum of understanding signed with SENAI in December 2024 to advance the development of rare earth magnets at SENAI’s Lab Fab Facility in Minas Gerais.
The Araxá project has shown promising potential, with drilling results confirming significant grades of up to 8 per cent niobium pentoxide and 33 per cent total rare earth oxides.
Recent drilling has intersected substantial mineralisation from the surface, including 43 metres at 1.5 per cent niobium pentoxide and 60 metres at 11.1 per cent total rare earth oxides.
As St George Mining continues to position itself as a key player in Brazil’s critical metals supply chain, this technical collaboration agreement marks a crucial milestone in the company’s journey towards establishing a near-term niobium and rare earths mining operation at Araxá.
