Highlights

• Hancock Prospecting takes major stake in St George Mining with A$22.5M strategic investment in the rare-earths sector.
• Araxá project boasts a 40.6 Mt resource with 320,000 tonnes of contained NdPr oxide.
• Positioned as a non-Chinese rare-earth development.
• Investment comes amid global efforts to diversify rare-earth supply chains away from Chinese dominance.

Mining billionaire Gina Rinehart’s Hancock Prospecting has taken a decisive step into the rare-earths sector with a A$22.5 million strategic investment in St George Mining (opens in a new tab) (ASX: SGQ). The placement forms part of a A$72.5 million capital raise designed to accelerate the company’s Araxá rare-earth and niobium project in Brazil. St George issued 725 million new shares at A$0.10 each, with Hancock subscribing for 225 million shares—roughly 31 percent of the placement—making it a major shareholder with about 6 percent of the company. Proceeds will fund an upgraded resource estimate, permitting, metallurgical testing, feasibility work, and deferred acquisition payments owed to Itafos.

Araxá’s maiden resource comprises 40.6 Mt at 4.13 % TREO and 41.2 Mt at 0.68 % Nb₂O₅, including about 320,000 tonnes of contained NdPr oxide. The deposit’s carbonatite-hosted geology mirrors Mt Weld (Lynas) and Mountain Pass (MP Materials), two of the only non-Chinese analogues. The investment comes as China expands rare-earth export controls, adding urgency to diversified supply efforts worldwide.

Rare Earth Magnate

For investors, Hancock’s backing signals confidence in Araxá’s long-term potential, but critical questions remain. How will St George secure refining, separation, and magnet-grade processing capacity? Are offtake or alliance agreements underway with Western partners? Can Brazil’s permitting system support a timely path to production? And is A$72.5 million sufficient to reach final investment decision and pilot plant stages?

From a fundamental perspective, Araxá’s high-grade resource and strategic support provide upside optionality, though the road to commercial output remains long and capital-intensive. Technically, SGQ has already soared ~575 % in 2025 (Motley Fool Australia), suggesting the market has priced in optimism, leaving room for volatility. Any pullback may present entry points, but risk management is paramount.

For the U.S. and its allies, this deal reinforces the drive to build non-Chinese supply chains for critical minerals. Yet success depends on downstream execution, regulatory approvals, and commercial discipline — the true tests still lie ahead.

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