St George Mining Advances Araxá Permitting for Rare Earths and Niobium Mine

Permitting Process Kicks Off at Araxá

St George Mining (ASX:SGQ) has taken a critical step toward developing its Araxá Project in Minas Gerais, Brazil, by lodging the Environmental Impact Assessment (EIA) and Environmental Impact Report (RIMA) with the State Environmental Foundation (FEAM). This submission initiates the first stage of the state’s three-tier licensing process needed to construct and operate a rare earths and niobium mine and processing complex.

The company’s Executive Chairman John Prineas highlighted the significance of this milestone, noting Araxá’s world-class scale and grade, surface-starting mineralisation, and location within an established mining region with existing infrastructure and strong community support. He emphasised the project’s comparatively small environmental footprint and the advantage of free-digging mineralisation that requires no blasting.

Scope and Substance of Environmental Studies

The EIA and RIMA documents, developed over 14 months with leading consultants, encompass a comprehensive greenfields development scenario. They cover an open-pit mine, mineral processing, refining and metallurgical plants, waste and tailings facilities, and supporting infrastructure. The studies include detailed baseline characterisation of physical, biological, and socio-economic environments, as well as impact assessments and control programs.

Importantly, the project’s mineral resource contains very low thorium and uranium levels, with ongoing metallurgical testwork confirming effective removal of these radionuclides during processing. These environmental considerations align with St George’s stated commitment to sustainable mining practices embedded throughout the project lifecycle.

Licensing Timeline and Parallel Development Work

In Minas Gerais, the licensing process involves three stages: Preliminary Licence (LP), Installation Licence (LI), and Operation Licence (LO), each with specific environmental and operational conditions. St George expects the LP and LI to be secured within approximately 12 months, with the LO anticipated after construction, which is projected for the second half of 2029, subject to approvals and a final investment decision.

Alongside permitting, the company is advancing a feasibility study led by Worley and continuing metallurgical testwork, including evaluating the use of existing regional processing facilities. This integrated approach aims to support subsequent development approvals and optimise project economics.

Resource Scale and Metallurgical Foundations

The Araxá Project boasts the largest high-grade carbonatite-hosted rare earths resource in South America, with 68% of the 111.2 million tonnes resource classified as Measured and Indicated. This represents a 155% increase in these categories, underscoring the deposit’s robustness and potential.

Historical and recent metallurgical testwork supports the project’s processing assumptions. Past pilot plant programs achieved rare earth recoveries up to 90% and demonstrated successful removal of impurities like thorium and uranium. Recent flotation testwork has produced high-grade niobium concentrates, reinforcing the dual commodity strategy.

Regulatory and Land Access Considerations

While the permitting process is underway, some regulatory and land tenure challenges remain. The project’s tenements are subject to renewal applications and mining concession approvals, with no guarantee of favourable outcomes. Certain areas are legally protected or classified for preservation, requiring additional approvals for exploration and mining activities. The company also faces royalty obligations to former owners and government bodies, which factor into project economics.

Access to land owned by the state, CBMM, or private entities has been agreed previously, but future arrangements remain subject to negotiation and approval.