St George Mining has extended its strategic alliance with US rare earths processor REalloys to finalise potential offtake agreements for high-grade rare earths from the Araxá Project in Brazil. This move aligns with US efforts to build independent rare earth supply chains critical for defence and green technologies.
- Strategic alliance with REalloys extended to complete metallurgical test work
- Potential offtake agreement for up to 40% of Araxá rare earths production
- Araxá hosts one of the world’s highest-grade rare earth deposits outside China
- REalloys expanding US rare earths processing and magnet manufacturing capabilities
- US government policies support securing independent rare earth supply chains
Strategic Alliance Extended
St George Mining Limited (ASX – SGQ) has announced an extension of its strategic alliance with US-based REalloys Inc, a leading rare earths processor and magnet manufacturer. Initially formed in September 2025, the alliance aims to finalise potential offtake arrangements for the high-grade rare earths from St George’s Araxá Project in Brazil. The extension provides additional time, up to one year, for detailed metallurgical test work and processing optimisation to ensure the rare earth products meet REalloys’ specifications for magnet production.
A World-Class Rare Earths Resource
The Araxá Project boasts a rare earths resource of 40.6 million tonnes at 4.13% total rare earth oxides (TREO), making it the largest and highest-grade carbonatite-hosted rare earth deposit in South America and second highest grade in the Western world. This positions St George as a significant potential supplier to the expanding US rare earths sector, which is focused on reducing reliance on Chinese supply chains. The project also contains substantial niobium resources, adding to its strategic value.
REalloys’ Role in US Rare Earths Independence
REalloys operates a vertically integrated mine-to-magnet supply chain in North America, producing magnet materials for key US government agencies including the Defense Logistics Agency and the Department of Energy’s AMES National Laboratory. The company is actively expanding its processing capabilities through partnerships with Japanese and Canadian entities and is preparing for a NASDAQ listing via a business combination. Its collaboration with St George aligns with US government initiatives to secure critical mineral supply chains for defence and green energy technologies.
Geopolitical and Commercial Context
The US government has recently intensified efforts to establish independent rare earth supply chains, exemplified by multi-billion-dollar deals with domestic producers and new trade policies aimed at securing critical minerals. Discussions between the US and Brazil on a trade deal for critical metals, including rare earths, are reportedly progressing well. St George is actively engaging with US government representatives to explore commercial arrangements that could accelerate the Araxá Project’s development and integration into the US supply chain.
Next Steps and Outlook
With metallurgical test work ongoing at REalloys’ facilities, the results will inform the final processing flowsheet and product specifications. The alliance aims to secure a long-term offtake contract for up to 40% of Araxá’s rare earth production. Meanwhile, St George’s upcoming resource upgrade later this quarter could further enhance the project’s standing among global rare earth deposits. The strategic alliance and government support in both Brazil and the US underscore the project’s potential to become a cornerstone of Western rare earth supply chains.
Bottom Line?
As rare earths become ever more critical, St George’s extended alliance with REalloys could be a key step in reshaping global supply chains away from China.
Questions in the middle?
- What will the metallurgical test results reveal about the optimal processing route for Araxá rare earths?
- How will the evolving US-Brazil trade discussions impact the commercial terms and timeline for Araxá’s development?
- What are the implications of REalloys’ upcoming NASDAQ listing for the strategic alliance and funding prospects?