St George Mining Secures Tecnicas Reunidas for Rare Earths Processing Test Work
St George Mining has partnered with Spain’s Tecnicas Reunidas to test advanced processing technology on its Araxá rare earths, aiming to unlock European markets alongside existing US and Brazilian alliances.
- Memorandum of Understanding signed with Tecnicas Reunidas for rare earths processing test work
- Utilisation of proprietary RARETECH® technology to refine Araxá rare earths
- Potential access to European rare earths markets via PERMANET Project connection
- Araxá Project holds South America’s largest hard-rock rare earths deposit
- Further engineering and licensing agreements contingent on test outcomes
Strategic Alliance with European Engineering Leader
St George Mining Limited (ASX:SGQ) has taken a significant step in advancing its Araxá rare earths project by signing a Memorandum of Understanding with Spain-based engineering giant Tecnicas Reunidas S.A. This alliance aims to leverage Tecnicas Reunidas’ proprietary RARETECH® processing technology to conduct test work on the high-grade rare earths extracted from Araxá, located in Brazil’s Minas Gerais state.
Tecnicas Reunidas is a well-established global engineering firm with a 66-year history and a strong reputation in rare earths processing, recently appointed to lead the European Union-funded PERMANET Project. This initiative seeks to establish the first European value chain for permanent magnet manufacture, a critical component in green technologies and advanced electronics.
Unlocking European Market Potential
The collaboration with Tecnicas Reunidas not only brings cutting-edge processing expertise but also positions St George to potentially access the vast European rare earths market. This complements the company’s existing strategic partnerships in the United States with REalloys and in Brazil with MagBras, reflecting a deliberate strategy to diversify and globalise its supply chain reach.
Executive Chairman John Prineas highlighted the significance of this alliance, noting the Araxá Project’s status as the largest hard-rock rare earths deposit in South America, surpassing even the Mountain Pass mine in the US. The volume and grade of Araxá’s rare earths provide St George with a unique opportunity to supply critical materials to multiple global markets, including Europe, which is keen to secure resilient and sustainable sources of these essential minerals.
Next Steps and Potential Outcomes
The initial phase under the MOU involves Tecnicas Reunidas conducting metallurgical test work to assess the suitability and efficiency of RARETECH® for refining Araxá’s rare earths into mixed rare earth carbonate and oxides, as well as element separation. Depending on these results, further collaboration could include designing a processing flowsheet, preliminary engineering studies, and cost estimations for a potential industrial plant.
While St George will cover the costs of this work, the parties plan to negotiate a licensing agreement should the technology prove viable. Importantly, the MOU does not bind either party exclusively, allowing St George to continue exploring other partnerships and commercial opportunities.
Araxá Project’s Growing Significance
Recent resource upgrades have confirmed Araxá’s substantial rare earths and niobium inventory, with over 70 million tonnes classified as measured and indicated resources at a high grade. The project benefits from established infrastructure, a skilled local workforce, and supportive government relations in Brazil, all of which underpin its development potential.
As global demand for rare earths intensifies; driven by the energy transition and technology sectors; St George’s strategic engineering alliances and resource scale position it as a noteworthy player in the evolving supply landscape.
Bottom Line?
St George’s alliance with Tecnicas Reunidas could be the key to unlocking European rare earths markets, but test results will determine the next phase.
Questions in the middle?
- Will the RARETECH® processing technology meet efficiency and cost targets for Araxá rare earths?
- How soon could a licensing agreement and industrial plant design be finalised following test work?
- What impact will this European alliance have on St George’s competitive positioning against other global rare earths suppliers?
