Rare Earth Exchanges

St George Mining’s Strategic Moves in Rare Earth and Niobium Industry-Brazil Moving into Permanent Magnet Production?

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Highlights

  • St George Mining signs MoUs with SENAI to develop Brazil’s first REE permanent magnet manufacturing facility.
  • Araxá project boasts ultra-high grades of niobium (up to 8%) and rare earth oxides.
  • Located adjacent to the world’s largest niobium producer.
  • Strategic partnership aims to strengthen Brazil’s critical metals supply chain for renewable energy and electric vehicle technologies.

Australia’s St George Mining (opens in a new tab) has signed two memorandums of understanding (MoUs) with SENAI, (opens in a new tab) Brazil’s premier scientific and research organization, to advance downstream processing of niobium and rare earth elements (REEs) from its Araxá project. This project, acquired in August 2024, sits adjacent to CBMM’s Araxá operation, the world’s largest niobium producer, and boasts high-grade mineralization with potential for significant expansion. Historical drilling has identified ultra-high grades of niobium (up to 8%) and total rare earth oxides (up to 33%).

The partnership focuses on research and production at Brazil’s first REE permanent magnet manufacturing facility, the Lab Fab, operated by FIEMG. With an initial annual capacity of 100 tonnes of magnets and plans to double within three years, this collaboration aligns with Brazil’s strategy to strengthen its critical metals supply chain. The MoUs also emphasize the sustainable processing of niobium and REE products and report multiple media sources, including Investing Australia (opens in a new tab).

The Araxá project has garnered substantial local and international support, including agreements with Invest Minas to expedite regulatory approvals and SKI Hong Kong for marketing and financing frameworks. These partnerships highlight the project’s strategic importance to Brazil’s critical minerals landscape.

St George has entered into a binding conditional agreement to acquire 100% of the Araxá niobium-REE Project in Minas Gerais, Brazil (the “Project”).

The mining product is immediately adjacent to and within the same carbonatite complex as the niobium mine of CBMM, which produces approximately 80% of the world’s niobium.

Historical drilling at the Project has defined extensive high-grade niobium, REE, and phosphate mineralization with:

  • More than 500 intercepts of high-grade niobium, >1% Nb2O5
  • Ultra-high grades up to 8% Nb2O5, 33% TREO and 32% P2O5
  • Mineralization commences from the surface and opens in all directions

The Project has outstanding development potential with a location in an established mining district with existing infrastructure (roads and power), a proven route to market, and access to the workforce.

Strategic Implications

This deal positions St George as a significant player in Brazil’s critical metals ecosystem, leveraging local partnerships to integrate mining operations with downstream processing and manufacturing. It underscores Brazil’s broader ambition to develop a self-sufficient supply chain for critical technologies like renewable energy and electric vehicles.

Assumptions and Biases

The latest round of business media on this deal assumes that regulatory and logistical hurdles will be resolved seamlessly and that market demand for REE permanent magnets will grow steadily.  We question that here at Rare Earth Exchanges, given imminent changes with the incoming Trump administration (e.g., exit the Paris Agreement, eliminate the electric care mandate, etc.).  As it is published in collaboration with St George Mining, there may be promotional bias emphasizing project potential while downplaying risks or uncertainties.

St George’s alignment with Brazilian institutions and the potential scale of the Araxá project could mark a pivotal moment in the rare earth industry, showcasing how localized production can reshape global supply chains, assuming the deal can scale out seamlessly.

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