Delays or Accelerations? Permitting Risks Loom Over Araxá’s Fast-Tracked Development
St George Mining secures robust local and state government support for its Araxá rare earths and niobium project in Brazil, launching community programs and accelerating exploration activities.
- Strong cooperation agreement with Minas Gerais state government to expedite permitting
- Community social programs launched to support local Araxá initiatives
- Major 10,000m drilling campaign underway to expand and upgrade resource
- Maiden mineral resource estimate confirms world-class niobium and rare earth deposits
- Strategic partnerships with Brazilian research agencies to innovate processing technologies
Government and Community Engagement
St George Mining Limited (ASX – SGQ) has reinforced its commitment to developing the Araxá rare earths and niobium project in Minas Gerais, Brazil, through strong partnerships with local government and community stakeholders. The company’s recent meetings with Araxá municipal representatives and community leaders have laid the groundwork for a collaborative approach focused on social and environmental responsibility. This engagement includes launching social programs aimed at health, education, and environmental initiatives, reflecting St George’s pledge to deliver shared benefits alongside economic development.
State Government Support Accelerates Permitting
In a significant boost to project momentum, St George signed a cooperation agreement with the State of Minas Gerais in late 2024. This agreement commits the state government to assist in expediting permitting approvals, recognising the strategic importance of the Araxá Project’s contribution to Brazil’s critical minerals supply chain and the global energy transition. Such government backing is crucial in a region with a strong mining heritage, adjacent to CBMM’s world-leading niobium operations, providing a supportive regulatory and infrastructure environment.
Exploration and Resource Development
St George has commenced a major drilling campaign at Araxá, with auger drilling already completed and reverse circulation and diamond drilling scheduled to follow. The 10,000-metre program aims to expand the resource base and upgrade inferred resources to indicated status, enhancing the project’s development potential. The company’s technical team is also re-assaying historical drill samples to identify additional critical metals, potentially broadening the project’s strategic value.
World-Class Mineral Resource Estimate
The Araxá Project hosts a globally significant maiden mineral resource estimate announced in April 2025. The resource includes 41.2 million tonnes grading 0.68% niobium pentoxide and 40.6 million tonnes grading 4.13% total rare earth oxides. These high-grade deposits start from surface and position Araxá as a key future supplier of strategic minerals essential for clean energy technologies.
Strategic Partnerships and Innovation
Beyond exploration, St George has established collaborations with Brazilian government-funded research agencies such as EMBRAPII and SENAI, as well as participation in the MAGBRAS Initiative to develop domestic rare earth processing capabilities. These partnerships align with the company’s strategy to integrate deeply with local and national stakeholders, fostering innovation and supporting Brazil’s emergence as a global player in critical minerals.
Bottom Line?
With strong government support and a robust exploration program underway, St George Mining is well-positioned to advance Araxá towards becoming a world-class strategic minerals hub.
Questions in the middle?
- How quickly will the expedited permitting process translate into development milestones?
- What impact will re-assaying historical samples have on the project’s critical metals profile?
- How will St George balance environmental and social commitments with rapid project advancement?