St George Mining Ltd is accelerating development of its newly acquired high-grade Araxá niobium-rare earth elements (REE) Project in Brazil, highlighting its potential to become a critical alternative supply source amid tightening Chinese export controls.
The project, located in the state of Minas Gerais, hosts a JORC-compliant Mineral Resource of 40.64 million tonnes at 4.13% total rare earth oxides (TREO), placing it among the world’s highest-grade hard-rock rare earths deposits.
Global supply risks elevate Araxá’s importance
Geopolitical tensions and recent Chinese restrictions on exports of rare earth elements and permanent magnets have intensified the need for diversified supply chains.
“China’s increased restrictions on the export of rare earths and permanent magnets have significantly disrupted the global supply chains for these commodities,” executive chairman John Prineas said. “The need for a sustainable rare earths industry outside China has never been stronger.”
The Araxá Project contains 320,000 tonnes of contained neodymium and praseodymium (NdPr) – the key rare earths used in permanent magnets essential to electric vehicles, defence, robotics, and energy storage industries.
Resource expansion and metallurgical studies underway
At Araxa, drilling is set resume in the coming weeks, targeting extensions at depth and along strike.
Mineralisation remains open in all directions, with additional zones below 100 metres not yet included in the current resource estimate.
St George is also undertaking a detailed metallurgical testwork program to determine the optimal flowsheet for production of both niobium and REE concentrates – a critical step in plant design and development planning.
“One of the largest producing hard-rock rare earths mines outside of China is the Mt Weld mine owned by the $7.3 billion-valued Lynas Rare Earths Ltd with a total resource of 106Mt @ 4.1% TREO", Prineas added.
“St George’s Araxá Project has a total JORC resource of 40.64Mt @ 4.13% TREO, illustrating the potential value upside for St George as we progress through development studies and resource expansion drilling to demonstrate the potential for a commercial rare earth mining operation at Araxá.”
Peer benchmarking of major hard-rock rare earths deposits (ex-China)
Strategic location
The project is located within a Tier 1 mining jurisdiction with a long history of commercial mining, established infrastructure, and access to skilled labour. Its shallow mineralisation supports potential low-cost, open-pit mining.
In parallel, St George is participating in Brazil’s MAGBRAS Initiative, a national program to establish the country’s first permanent magnet manufacturing facility.
Other participants include automotive group Stellantis and fellow rare earths producers, reinforcing Araxá’s future downstream potential.
With a globally significant resource, favourable logistics and a strong strategic position, St George Mining is advancing towards becoming a major player in the global rare earths market.