St George Secures Worley for Araxá Feasibility Studies
St George Mining has secured Worley Engenharia Ltda as technical adviser to accelerate feasibility studies and project development at its Araxá Niobium-Rare Earths Project in Brazil, leveraging a highly experienced local team and strong government support.
- Worley appointed for comprehensive feasibility and engineering services
- Araxa project hosts world-class niobium and rare earths resource
- Experienced in-country team with CBMM pedigree leads development
- Project benefits from strategic location and government backing
- Resource upgrade confirms scale with 70.91Mt at 4.06% TREO
Worley Joins Araxá Project for Feasibility and Engineering
St George Mining Limited (ASX:SGQ) has appointed Worley Engenharia Ltda, the Brazilian arm of Australian-listed Worley Limited (ASX:WOR), to provide technical advisory services for the feasibility and development studies of its Araxá Niobium-Rare Earths Project in Minas Gerais, Brazil. This partnership follows a competitive selection process where Worley’s extensive engineering expertise and deep roots in the Brazilian resources sector stood out.
Worley’s remit is broad, covering metallurgical and process engineering, feasibility and cost studies, plant design, mine planning, tailings management, procurement, and construction support. This engagement aims to accelerate economic studies and move the project closer to development.
Local Expertise Anchors Project Development
St George’s Araxá project benefits from a highly credentialled in-country team with decades of experience, many with direct ties to CBMM, the world’s leading niobium producer operating adjacent to Araxá. Key personnel include Carlos Araujo, who led design and commissioning of CBMM’s advanced niobium plant; Ricardo Nardi, former Head of Mineral Processing at CBMM; and Adriano Rios, ex-Production Manager at CBMM with expertise in mine planning and operations. This experienced team will work closely with Worley to craft an integrated engineering strategy.
The importance of this local expertise is underscored by the project’s location in a well-established mining region with existing infrastructure, skilled workforce, and a supportive permitting regime. These factors combine to de-risk the project’s pathway to production.
Resource Scale and Quality Underpin Development Potential
The Araxá Project hosts a substantial mineral resource estimated at 70.91 million tonnes grading 4.06% Total Rare Earth Oxides (TREO) at a 2% TREO cut-off, placing it among the world’s largest carbonatite deposits. An additional 24.56 million tonnes at a lower niobium oxide cut-off further adds to the resource inventory. This resource upgrade was announced earlier in March and significantly expands the project’s footprint and grade profile, reinforcing its status as a globally significant deposit.
Such scale and grade underpin the project’s potential to supply critical materials for high-tech and clean energy applications. The project’s proximity to CBMM’s operations also offers operational synergies and local knowledge benefits. This appointment dovetails with recent developments including a 75% resource increase and strategic partnerships to support downstream processing and market access, highlighting the project’s momentum in advancing towards commercialisation.
Worley’s Role in Advancing Economic Studies
Worley’s senior vice president for Latin America, Tom Foster, emphasised the company’s commitment to leveraging regional expertise and global capabilities to support the Araxá Project. The collaboration aims to deliver an optimal engineering solution that balances technical excellence with economic viability. This is a critical step as St George seeks to fast-track feasibility studies and position the project for development decisions.
Executive Chairman John Prineas highlighted the strategic advantages of the Araxá location, including access to transport and energy infrastructure, a skilled workforce, and high-grade mineralisation amenable to open-pit mining. He noted that Worley’s involvement would help maintain momentum in economic studies, complementing the strong government support and community ties the project enjoys.
Integration with Broader Project Progress
This move to appoint Worley comes on the heels of St George’s recent announcements confirming wide, continuous high-grade mineralisation extending beyond previous resource boundaries, further validating the project’s scale and quality. The ongoing drilling and resource expansion efforts are integral to shaping the feasibility parameters and refining project economics.
Moreover, St George’s partnerships with technology providers like Boston Metal and Tecnicas Reunidas aim to enhance processing efficiency and market reach, aligning with the engineering and project management services Worley will provide. These combined developments reflect a multi-faceted approach to unlocking the Araxá Project’s potential in the global rare earths and niobium markets.
Bottom Line?
Worley’s appointment signals a critical step in translating Araxá’s world-class resource into a viable mining operation, but timelines and costs remain to be defined.
Questions in the middle?
- How will Worley’s engineering input influence the final feasibility outcomes and project economics?
- What is the anticipated timeline for completion of the feasibility studies and subsequent development milestones?
- How will St George integrate emerging processing technologies with Worley’s project design to optimise rare earth and niobium recovery?
