St George Mining Ltd (ASX:SGQ) has delivered a 30-kilogram bulk sample of rare earths material from its 100%-owned Araxá Project to the MagBras Project, marking the first such delivery by a Brazilian mining company and highlighting the advanced stage of St George’s Araxá Project, which hosts a world-class deposit of rare earths and niobium.
The sample will undergo studies as part of MagBras, a public-private initiative focused on establishing a domestic rare earths supply chain in Brazil. St George has also signed a Memorandum of Understanding (MoU) with MagBras, establishing itself as a key potential supplier for Brazil’s rare earths magnet production facility.
Strategic importance of the Araxá Project
The Araxá Project in Brazil’s Minas Gerais region is a globally significant deposit of both rare earths and niobium. With a maiden mineral resources estimate (MRE) of 40.64 million tonnes (Mt) at 4.13% total rare earth oxides (TREO) and 41.2Mt at 0.68% niobium pentoxide (Nb₂O₅), Araxá is poised to play a key role in the global supply of critical minerals.
The project’s mineralisation is open in all directions, and ongoing drilling is expected to extend the known resources, with more than 9,000 metres of diamond drilling planned.
St George’s exploration program is designed to upgrade and expand the resource, with a particular focus on converting Inferred resources to the Indicated category. The first assay results from this expanded drilling program are expected shortly, which will help further define the project’s potential.
Catalyst for Brazil’s rare earths and niobium sectors
This delivery underscores St George’s role as a first mover in Brazil’s emerging rare earths supply chain. The MagBras Project, supported by Brazil’s National Service of Industrial Learning (SENAI) and the Federation of the Industries of Minas Gerais (FIEMG), aims to develop the country’s first domestic rare earths magnet facility. In addition to St George, other developers in Brazil and global automakers such as Stellantis and Iveco are participating in the initiative.
“We are now delighted to be the first rare earths miner in Brazil to provide a rare earths product to MagBras for downstream studies into magnet production,” John Prineas, executive chairman of St George said.
“The Araxá Project has competitive advantages through favourable project logistics that support an expedited pathway to potential development,” he added.
Expanding partnerships and growth opportunities
Meanwhile, St George is also actively engaging with potential partners in the US and other countries, where governments are keen to secure reliable and independent supply chains for rare earths and niobium outside of China. The recent focus on rare earths by the US Department of Defense and companies like Apple further underlines the strategic value of these materials in global markets.
As St George progresses its drilling program at Araxá, it sees strategic engagement with MagBras and its increasing focus on international partnerships as catalysts to capitalise on these trends.
“Our project is well-positioned to be a potential supplier of rare earths product for ex-China supply chains being established in Brazil and other countries,” Prineas said. “These unprecedented market developments underpin our potential to deliver significant, sustained value from advancing the Araxá Project.”