How St George Mining Is Shaping a Global Niobium and Rare Earths Powerhouse
St George Mining has released a comprehensive investor presentation spotlighting its Araxá Project in Brazil, positioning itself as a major global player in niobium and rare earth elements with significant resource expansion and strategic partnerships underway.
- Araxa Project hosts a world-class, high-grade niobium and rare earth resource
- Market cap surged from A$25m to A$365m in 2025
- Ongoing drilling program aims to expand resource estimate significantly
- Strategic partnerships established in Brazil and the US for downstream processing
- Strong government and community support underpin project development
A Global Player Emerges
St George Mining Limited (ASX, SGQ) has taken a significant step forward in its evolution as a global critical minerals company with the release of a detailed investor presentation focused on its 100%-owned Araxá Project in Minas Gerais, Brazil. This project is rapidly gaining recognition as a world-class source of niobium and rare earth elements (REE), two metals critical to modern technologies and strategic industries.
Over 2025, St George transformed its market presence, with its market capitalisation soaring from a modest A$25 million to a robust A$365 million. This leap reflects growing investor confidence, bolstered by a A$72.5 million institutional placement and the backing of heavyweight shareholder Hancock Prospecting, which now holds a 6.2% stake.
Resource Scale and Quality
The Araxá Project boasts a substantial JORC-compliant resource, featuring 41.2 million tonnes at 0.68% niobium pentoxide and 40.6 million tonnes at 4.13% total rare earth oxides. Notably, the deposit is among the highest-grade carbonatite-hosted REE resources globally and the largest in South America. The mineralisation starts at surface, is amenable to open-pit mining, and exhibits favourable characteristics such as free-digging ore within the weathered profile, which could translate into lower extraction costs.
Drilling programs are ongoing and have been extended indefinitely, with recent results confirming high-grade zones and expansion potential in multiple directions. The company is actively upgrading inferred resources to indicated status, a critical step towards advancing feasibility studies.
Strategic Partnerships and Development Initiatives
St George is not only focused on resource expansion but also on downstream processing and market integration. The company has established a memorandum of understanding with MagBras, a Brazilian initiative aiming to develop a rare earth permanent magnet production facility, effectively creating a 'mine to magnet' supply chain within the region.
In the United States, St George has formed a strategic alliance with REalloys Inc, a leading magnet materials manufacturer with key government contracts. This partnership aims to commercialise Araxá’s rare earths for high-performance magnets used in defence and aerospace sectors, aligning with US government priorities for secure supply chains.
Further supporting its development ambitions, St George is collaborating with CEFET, a leading technological institution in Minas Gerais, to establish a pilot plant for mineral processing and hydrometallurgical refinement. This facility will serve both research and production purposes, enhancing the project's technical foundation and sustainability credentials.
Community and Government Engagement
Strong local and governmental support is a cornerstone of the Araxá Project. St George’s in-country leadership team comprises seasoned professionals with deep ties to the region, ensuring effective community engagement and environmental stewardship. The company has initiated socio-environmental projects benefiting the Araxá community and secured cooperation agreements with the Minas Gerais state government, signalling a favourable permitting environment.
Looking Ahead
St George plans to advance its economic studies in the first half of 2026, alongside continued drilling and metallurgical test work. The pilot plant is scheduled to commence operations in the latter half of the year, with expectations of producing sample products to support offtake discussions. The company is also actively pursuing additional strategic investors and downstream partners to underpin the project’s development trajectory.
While the Araxá Project presents a compelling opportunity, investors should remain mindful of the inherent risks typical of mineral exploration and development, including permitting, environmental, and financing challenges. Nonetheless, St George’s methodical approach and strong partnerships position it well to capitalise on the growing global demand for critical minerals.
Bottom Line?
As St George advances Araxá’s development, the coming months will be pivotal in translating resource potential into tangible market value.
Questions in the middle?
- How will St George navigate the permitting process amid environmental sensitivities in Minas Gerais?
- What are the timelines and terms expected for securing additional strategic investors and offtake agreements?
- How might geopolitical dynamics influence the commercialisation of Araxá’s rare earths in the US and Brazil?
