St George Mining, an Australian miner, has announced a substantial 75% increase in the estimated mineral resources for its Araxá Project, located in Minas Gerais, Brazil. This significant update comes as the company actively pursues global partnerships, engaging with players from the United States to China, to secure the necessary investment and expertise for developing the promising venture.
The Araxá deposit is gaining international attention due to its unique combination of rare earth elements and niobium within the same mineral system. The updated resource now stands at an impressive 70.91 million tons, boasting an average grade of 4.06% total rare earth oxides and 0.62% niobium. This concentration positions the project as a critical player in the growing market for advanced technologies.
The 4.06% rare earth grade is particularly notable, considered exceptionally high for projects outside China, which currently dominates the production and processing of these strategic minerals. This high grade, coupled with the dual mineral presence, underscores the project’s strategic importance for diversifying global supply chains.
The company calculates this grade by focusing on areas with a concentration above 2% total rare earth oxides, deliberately excluding lower-grade zones to ensure high-quality resource estimation. Furthermore, new drilling operations are planned and not yet included in the current estimate, indicating a strong potential for future revisions and further increases in the project’s resource volume, reinforcing its long-term viability.
Global scramble for critical minerals
The Araxá project, though still in its development phase, is under close scrutiny by international corporations and governments. This intensified interest is set against a backdrop of a global rush for critical minerals, essential components in an array of advanced technologies.
These include electric vehicles, high-efficiency wind turbines, and sophisticated electronic equipment, all of which rely heavily on minerals like rare earths and niobium for their performance and functionality. The increasing demand for these materials underscores the strategic value of new, high-quality deposits.
High-grade deposit and future potential
The average rare earth grade of 4.06% in Araxá is a key differentiator, standing out significantly when compared to most rare earth projects globally, especially those outside of China. This high concentration simplifies extraction and processing, potentially leading to lower operational costs and increased profitability.
St George Mining’s methodology of calculating resource estimates, which only considers areas with concentrations above 2% total rare earth oxides, ensures that the reported figures represent a high-quality, economically viable resource. This conservative approach, combined with the ongoing and planned drilling activities that are yet to be incorporated into the current estimates, suggests that the project’s full potential may still be underestimated. Future updates are expected to reveal even larger resource volumes, further solidifying Araxá’s position as a world-class deposit in the critical minerals sector.
Strategic negotiations: US, China, and beyond
To advance its next development stages, which include detailed engineering and the construction of processing plants, St George Mining is actively seeking new resources. The project has already secured fiscal incentives from the Minas Gerais state government, which recognizes its significant strategic potential for the region and the nation.
Thiago Amaral, St George’s Director of Development in Brazil, stated in a recent interview that discussions are most advanced with American companies, yet the company maintains an open dialogue with interested parties from various regions. He highlighted that while the US leads current negotiations, the company remains receptive to diverse proposals.
Amaral confirmed that conversations are also underway with entities in Brazil and Europe, alongside receiving proposals from Chinese firms. This broad engagement reflects the global importance of the project and the competitive nature of the critical minerals market. The company’s strategy emphasizes a global approach to partnerships, aiming for the most beneficial collaborations.
Specifically, St George is negotiating a potential offtake agreement with REalloys, an American company. This agreement could involve the future purchase of up to 40% of the rare earths produced in Araxá. Such a partnership would not only secure a significant buyer but also potentially integrate REalloys into subsequent industrial stages, such as the separation and production of materials vital for manufacturing permanent magnets.
Pioneering value aggregation in Brazil
A core component of St George’s strategy is to increase the industrial processing stages performed within Brazil, aligning with the federal government’s policy to add value to critical minerals domestically. This approach aims to transform raw mineral exports into higher-value industrial inputs, fostering local economic growth and technological development.
The company is currently evaluating various product possibilities along the production chain. These range from mixed rare earth concentrates to more advanced stages, such as separated oxides of neodymium and praseodymium—two of the most valuable elements in the group, indispensable for high-performance permanent magnets.
Both product options under consideration represent significant steps in value aggregation in Brazil, requiring complex chemical and metallurgical processes that convert raw ore into industrial-grade materials. The production of mixed carbonate, for instance, involves chemical processing of concentrated ore, reducing volume and increasing product value while preparing it for further refining.
Moving to the separation of individual oxides represents an even more advanced stage of the production chain. These purified oxides serve as the foundation for manufacturing high-performance permanent magnets, which are critical components in electric vehicle motors, wind turbines, electronic equipment, and defense systems, driving demand across strategic industries.
Advancing processing technology and local development
Today, only a few countries outside of China possess the industrial capacity to master these advanced processing and separation stages for rare earths. China currently controls the majority of global processing and separation capabilities, dominating not only mining but also the chemical refining and production of high-value-added materials, which are considered the most strategic segments of the supply chain.
Initiatives like St George’s, which aim to advance these phases in Brazil, are therefore seen as crucial. They contribute both to the industrialization of Brazil’s mineral sector and to the diversification of global supply chains for critical minerals, reducing dependence on a single dominant producer. This strategic move bolsters national security and economic resilience for consuming nations.
Collaborative innovation and specialized workforce training
In 2025, St George Mining announced a significant partnership with CEFET-MG (Centro Federal de Educação Tecnológica de Minas Gerais) to establish a technology center in Araxá. This initiative includes the installation of a pilot plant specifically designed for the processing of rare earth elements and niobium.
The center’s primary objectives are to develop advanced technological routes for mineral processing and to cultivate a specialized workforce. Thiago Amaral emphasized the company’s commitment to high-value products, stating, “Our idea is always to work with products that add value. Both in niobium, where we already perform metallurgical stages or a purification stage up to the oxides, and in rare earths, we are collaborating with initiatives like MagBras to develop the magnet chain in Brazil.” This commitment underscores a strategic focus on elevating Brazil’s role in the global critical minerals value chain.
Proximity to a global niobium hub
The project, strategically located adjacent to the facilities of CBMM (Companhia Brasileira de Metalurgia e Mineração) in Araxá, benefits from its proximity to the world’s largest niobium producer, which accounts for approximately 80% of the global supply. This proximity could offer significant logistical and operational advantages.
The Araxá project is slated to commence operations by 2028, further establishing Brazil as a key player in the critical minerals market.
