St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF) has moved to strengthen the downstream pathway for its flagship Araxá project in Brazil, signing a strategic engineering alliance with Spanish group Técnicas Reunidas SA to test advanced rare earths processing technology and assess access to European markets.
The memorandum of understanding (MOU) will see Técnicas Reunidas undertake metallurgical test work on samples from St George’s high-grade Araxá niobium-rare earths project in Minas Gerais, with a focus on refining processing routes and evaluating the suitability of its proprietary RARETECH® technology.
The agreement builds on a series of recent developments at Araxá, including a major resource upgrade to 70.9 million tonnes and ongoing drilling success that has delivered broad, high-grade rare earths and niobium intercepts, as the company works to position the project within global critical minerals supply chains.
European link adds new market pathway
Técnicas Reunidas brings significant technical and strategic weight to the partnership. The company has been appointed to lead the European Union-backed PERMANET project, which aims to establish the continent’s first integrated value chain for rare earth permanent magnets.
That initiative spans 12 countries and 32 industry and government partners, highlighting Europe’s push to secure independent supply of critical materials.
For St George, the alliance opens a potential third major market alongside existing downstream relationships in the United States and Brazil, including partnerships with REalloys and MagBras.
Executive chairman John Prineas said the collaboration could help unlock both technical optimisation and commercial opportunities.
“We are very excited to be working with Técnicas Reunidas to further assess the optimal processing route for the Araxá rare earths and to potentially access the vast European market for rare earths,” he said.
He added that the scale of the Araxá resource — described as the largest hard-rock rare earths deposit in South America — provides scope to supply multiple global markets.
Testing pathway for downstream development
Initial work under the MOU will focus on assessing how effectively RARETECH® can process Araxá mineralisation, including:
- Production of mixed rare earth carbonate and rare earth oxides
- Separation and splitting of individual rare earth elements
If results are positive, the scope could expand to include flowsheet optimisation, preliminary engineering studies and cost estimates for a potential processing plant, as well as development of project-specific processing methods.
The parties have also flagged the potential for a future licensing agreement for the use of the technology at Araxá, subject to successful test work outcomes.
Importantly, the agreement is non-exclusive at this stage, allowing St George to continue pursuing additional technical and strategic partnerships as it advances development studies.
Scaling a globally relevant rare earths project
The latest move adds to growing momentum at Araxá, where St George is steadily shifting from resource definition towards development planning and downstream integration.
The project sits in a well-established mining region with existing infrastructure and a skilled workforce, factors that could support a streamlined pathway through approvals and into production.
Recent work has also highlighted the project’s dual commodity exposure, with both rare earth elements and niobium offering exposure to high-growth sectors including electrification, renewable energy and advanced manufacturing.
With global competition intensifying to secure supply of critical minerals — particularly outside China — St George’s strategy is increasingly focused on building a diversified network of processing and offtake partners across key jurisdictions.
The addition of a European engineering partner with direct links to the continent’s emerging magnet supply chain marks another step in that direction, potentially positioning Araxá as a multi-market supplier as development studies progress.