St George Mining (ASX: SGQ) has inked significant partnership agreements to advance downstream production opportunities for niobium and rare earth elements (REE) from its high-grade Araxá project in Minas Gerais, Brazil.
These strategic collaborations aim to strengthen Brazil’s position in the critical metals supply chain.
The company has entered into two memorandums of understanding (MoUs) with SENAI, Latin America’s largest scientific and technological agency.
The first MoU focuses on the research, development, and production of rare earth magnets at SENAI’s Lab Fab facility in Minas Gerais — the first permanent magnet production facility in Brazil and Latin America.
The Lab Fab facility, operated by the Federation of the Industries of Minas Gerais (FIEMG), is scheduled to commence production this year with an initial capacity of 100 tonnes of permanent magnets annually, with plans to double this capacity within three years.
St George Mining has been selected as a potential supplier of rare earth materials for this groundbreaking facility.
The second MoU between St George and SENAI aims to develop sustainable processing and manufacturing techniques for niobium and rare earth products.
This collaboration underscores the company’s commitment to environmentally responsible mining and production practices.
John Prineas, Executive Chairman of St George Mining, expressed enthusiasm about the partnerships, stating: “The agreements signed with SENAI will support the development of downstream opportunities for St George — further integrating our proposed Araxá operation into Brazil’s supply chains for critical metals.”
Meanwhile, St George is in the process of finalising the acquisition of the Araxá project.
The company is negotiating amendments to the purchase agreement to allow additional time for completion, with the transaction now expected to close in Q1 2025.
Despite this delay, the key terms of the agreement, including the purchase price, are expected to remain unchanged.
The Araxá project boasts extensive high-grade niobium and rare earth deposits, with drilling revealing over 500 intercepts of high-grade mineralisation starting from the surface.
Grades of up to 8 per cent Nb2O5 and 33 per cent TREO position the project as a potentially significant player in Brazil’s critical metals sector.
As St George Mining continues to build a strong foundation for the Araxá project, these partnerships mark important milestones in the company’s strategy to integrate into Brazil’s growing rare earth and niobium industries.
