St George Mining Ltd. has inked an agreement with Lima & Pergher Group and the State of Minas Gerais to evaluate establishing a dedicated rare earths processing hub in Brazil.
The collaboration agreement sets the framework for establishing the Minas Gerais Rare Earths Processing Centre. The hub aims to create a fully integrated, domestic mine-to-magnet supply chain using Brazilian feedstock and localised processing capabilities.
Under the framework, St George will collaborate with START, the industrial and chemical division of Lima & Pergher, to evaluate building the processing facility at START’s existing industrial complex in Uberlândia.
The proposed centre will refine various feedstocks, including rare earth concentrates and mixed carbonates, into magnet-making materials.
These products will supply downstream manufacturers such as MagBras, which is currently constructing Brazil’s inaugural permanent magnet plant.
The state government, through Invest Minas and the Department of Economic Development, will assist the project by expediting licensing procedures, connecting local suppliers, and facilitating applications for state tax incentives.
St George will contribute technical expertise and supply feedstock from its nearby Araxá Project. Araxá stands as the largest high-grade carbonatite-hosted rare earths resource in South America, boasting a resource estimate of 111.2 million tonnes at 3.57 per cent total rare earth oxides (TREO).
“This is an opportunity to establish midstream rare earths processing in Minas Gerais that will build out Brazil’s mine-to-magnet supply chain,” said St George Executive Chairman John Prineas, emphasising that state backing significantly de-risks the initiative.
“Through this partnership, we will be able to further contribute to establishing Minas Gerais as a world leader in rare earths while also creating employment and economic stimulus in the state,” added Fabio Pergher, Chairman and President of Lima & Pergher Group.
Pending technical studies, definitive commercial agreements, and regulatory approvals, the parties are targeting initial operations at the processing hub by 2030.
