The St George Mining Ltd (ASX: SGQ) share price is rising on Thursday after announcing a major step toward establishing a rare earths processing centre in Minas Gerais, Brazil, with local partner Lima & Pergher and strong State government support.
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What did St George Mining report?
- Signed a collaboration agreement with Lima & Pergher and the State of Minas Gerais to create a rare earths processing centre
- The centre will offer processing services to rare earths projects, including St George's Araxá Project
- St George's Araxá Mineral Resource now stands at 111.2Mt @ 3.57% TREO and 0.57% Nb₂O₅
- The agreement supports a fully domestic Brazilian mine-to-magnet supply chain
- St George may supply feedstock and technical expertise for the centre's development
What else do investors need to know?
St George's Araxá Project is the largest high-grade carbonatite-hosted rare earths resource in South America, bolstering the company's position in the critical minerals sector. The proposed processing facility in Uberlândia benefits from being located within a major industrial complex, offering established infrastructure and access to a skilled workforce.
The State of Minas Gerais will support licensing, promote connections with suppliers, and help with tax incentives. St George is also advancing discussions with potential offtake and downstream processing partners from the US, Asia, and Europe.
What did St George Mining management say?
John Prineas, Executive Chairman of St George Mining, said:
We are honoured to have been selected by the State to partner on the potential establishment of a rare earths processing centre which could have the capability to separate rare earths, refine rare earths and produce materials for rare earths magnet making. This is an opportunity to establish midstream rare earths processing in Minas Gerais that will build out Brazil's mine-to-magnet supply chain.
What's next for St George Mining?
St George and its partners will assess the feasibility of the new processing centre, aiming for operations to commence by 2030, subject to investment decision and approvals. In parallel, St George is conducting a feasibility study for the Araxá Project, de-risked by its upgraded mineral resource.
These initiatives support St George's growth as a significant player in the critical minerals and rare earths supply chain in Brazil and globally.
