St George Mining Ltd (ASX:SGQ) has deepened its engagement with local and state governments in Brazil as it progresses development of its flagship Araxá rare earth elements (REE) and niobium project in Minas Gerais.
The company has launched community social programs and expanded relationships with the City of Araxá and the State of Minas Gerais, all aimed at securing long-term support for the globally significant critical minerals project.
Backed by strong local and state government support
St George reported strong backing from the local Araxá community following recent meetings with municipal and community leaders. The dialogue has helped to reinforce the company’s commitment to social and environmental responsibility in developing the project.
“The combination of local and state government support, a world-class resource, the location in an established mining region with access to infrastructure and a first-class in-country team... all contribute towards positioning St George very well to deliver on our vision for a globally significant rare earths and niobium mine at Araxá,” said executive chairman John Prineas.
This follows a cooperation agreement signed in October 2024 with the Minas Gerais state government, which committed to expediting permitting approvals for Araxá in recognition of St George’s proposed investment and contribution to Brazil’s critical minerals sector.
Community programs and strategic partnerships
During on-the-ground meetings last week, St George launched a new socio-environmental program designed to support initiatives in health, education and sustainability across the Araxá region.
Led by Brazil-based executives Thiago Amaral and Adriano Rios, the company is also working closely with nationally funded institutions to help establish innovative processing methods and downstream supply chains.
Partners include EMBRAPII (Brazilian Association for Research and Industrial Innovation), SENAI (National Industrial Education Services), and the MAGBRAS Initiative — which aims to create Brazil’s first permanent magnet manufacturing facility.
“These relationships underscore St George’s strategy to integrate with governments and the business sector across all levels in Brazil,” the company said.
Drilling program under way
A major 10,000-metre drilling campaign is currently under way at the Araxá Project, with 16 auger holes completed to date. Reverse circulation drilling is set to begin shortly, followed by diamond drilling in July. The campaign will target both resource expansion and upgrades to the current mineral resource estimate.
St George is also re-assaying historical drill core for additional critical minerals beyond the previously tested rare earths and niobium.
(From left) Thiago Amaral and John Prineas inspect drill core at St George’s Araxá warehouse.
World-class resource potential
The Araxá Project, which St George acquired in February 2025, is located next to CBMM’s globally dominant niobium operation. Past drilling confirmed extensive high-grade mineralisation beginning at surface.
The April 2025 maiden resource includes:
- Niobium: 41.2 million tonnes at 0.68% Nb₂O₅, including a Measured and Indicated component of 9.27 million tonnes.
- Rare earths: 40.6 million tonnes at 4.13% total rare earth oxides (TREO), including high concentrations of magnet rare earths (MREO).
With community partnerships in place, a skilled local workforce and a clear permitting path, St George says it is on track to deliver one of the world’s most important new critical minerals developments.