Risks and Rewards: St George Navigates Permitting and Market Shifts for Araxá
St George Mining showcased its Araxá rare earths and niobium project at EXPOSIBRAM 2025 in Brazil, highlighting strategic alliances with US processors and ongoing development progress. The company is positioning Araxá as a key non-China supply source amid shifting global rare earths dynamics.
- Participation at EXPOSIBRAM 2025 mining conference in Brazil
- Showcasing Araxá Project’s world-class rare earths and niobium resource
- Strategic alliance with US rare earths processor REAlloys
- Ongoing drilling program targeting resource expansion
- Government support and pilot plant development underway in Brazil
Global Rare Earths Landscape Shifts
St George Mining Limited (ASX, SGQ) has taken a prominent step in positioning its Araxá Project as a critical player in the evolving global rare earths and niobium market. At EXPOSIBRAM 2025, one of Latin America's largest mining events held this week in Salvador, Brazil, the company presented its project to investors, government officials, and industry stakeholders. This comes amid heightened geopolitical focus on securing rare earths supply chains outside China, underscored by recent US Department of Defense initiatives.
Araxá Project, A World-Class Asset
The Araxá Project, located in Minas Gerais, Brazil, boasts a maiden JORC resource featuring 41.2 million tonnes at 0.68% niobium pentoxide and 40.6 million tonnes at 4.13% total rare earth oxides. Its high-grade, surface-near mineralisation is amenable to open-pit mining, supported by existing infrastructure and a skilled local workforce. St George has secured government backing for expedited approvals and assembled a seasoned in-country team to advance exploration and development.
Strategic Alliances and Downstream Ambitions
Recognising the strategic importance of downstream processing, St George has forged a partnership with US-based REAlloys Inc, a leading rare earth magnet materials supplier to the US defense and industrial sectors. This alliance aims to integrate Araxá’s supply into resilient, government-supported supply chains in the US and European Union. Discussions with representatives from both governments at EXPOSIBRAM signal strong interest in diversifying rare earths sources amid global supply chain realignments.
Ongoing Development and Community Engagement
St George is actively expanding its resource base through a +10,000m drilling program, with results expected to upgrade and enlarge the current resource estimate in early 2026. The company is also advancing metallurgical testwork and pilot plant initiatives in collaboration with Brazil’s CEFET technological institute, aiming to develop downstream processing capabilities locally. Community engagement remains a priority, with socio-environmental projects and strong local support underpinning the project’s sustainable development strategy.
Capital and Regulatory Outlook
Financially, St George recently completed a $50 million institutional placement and is pursuing a $22.5 million strategic placement to Hancock Prospecting, subject to shareholder approval. While the company benefits from government facilitation, it continues to navigate typical exploration and permitting risks inherent in mining projects. The next phases will focus on securing further approvals, delivering drilling results, and advancing economic studies to underpin project financing and development.
Bottom Line?
As geopolitical forces reshape rare earths supply chains, St George’s Araxá Project stands poised to become a pivotal non-China source, but upcoming drilling and regulatory milestones will be critical to watch.
Questions in the middle?
- How will upcoming drilling results impact the Araxá resource size and grade?
- What are the timelines and likelihood for securing all necessary mining approvals in Brazil?
- Can St George expand its strategic partnerships to accelerate downstream processing and market access?
