St George Mining Limited (ASX: SGQ) (“St George Mining” or the “Company”) has secured a major endorsement from the State Government of Minas Gerais, Brazil, with the signing of a preferential goods tax regime that will significantly reduce development costs for its world-class Araxá Niobium–Rare Earths Project.
The announcement marks a pivotal step forward for the Company as it advances one of the most strategically important critical minerals projects in South America.
Government Confirms Tax Exemptions for Araxá Development
The State of Minas Gerais has formally approved a preferential tax regime that exempts key project equipment and materials from state goods tax, which can reach up to 18% at the time of acquisition.
The exemption applies to:
- Equipment for the pilot plant
- Equipment for the full-scale industrial plant
- Materials required for construction and development
Governor Romeu Zema signed the regime alongside the Minas Gerais State Economic Development Department (SEDE) and Invest Minas.
This fiscal support will directly lower capital expenditure and improve project economics as the Company progresses feasibility studies.
Figure 1: Minas Gerais Governor Romeu Zema speaks at the St George Open Day and Critical Minerals Forum in Araxá, with St George’s in-country leaders Thiago Amaral and Adriano Rios. [St George Mining Limited]
Executive Chairman Highlights Strategic Impact
John Prineas, Executive Chairman of the Company, emphasised the significance of both the drilling success and government backing.
“Our ongoing drill program at Araxá is delivering tremendous high-grade results which we believe will underpin a very robust proposal for a world-class niobium and rare earths mining operation.”
He further stated:
“We are delighted that the Government of Minas Gerais has recognised the value of our development strategy at Araxá with tax exemptions and other support. The tax concessions will feed directly into our economic study for a potential mining operation at Araxá.”
The Company continues to strengthen its economic modelling, and the tax relief will improve projected returns and shorten potential payback periods.
Strong Government Collaboration Since 2024
The newly signed tax regime builds on an earlier Memorandum of Understanding signed in October 2024 between the Company and the State of Minas Gerais.
Under that agreement, both parties committed to collaborate on:
- Fast-tracking project approvals
- Supporting domestic supply chains for niobium and rare earths
- Advancing downstream industries such as magnet production
At a Critical Minerals Forum hosted by the Company in Araxá on 1 December 2025, more than 200 delegates attended, including community leaders, government officials and industry stakeholders.
Mr John Prineas noted:
“Governor Romeu Zema, who is from Araxá, spoke at the Forum and made it clear that the State of Minas Gerais can play a leading role in establishing domestic supply chains in Brazil with several emerging critical minerals mines such as our Araxá Project as well as downstream initiatives like the Lab Fab facility of the MagBras Project.”
Figure 2: John Prineas, Executive Chairman, St George Mining [LinkedIn]
St George Technological Centre to Drive Innovation
The Company has also formed a joint venture with CEFET (Federal Center for Technological Education) to construct a large-scale pilot plant at the Araxá campus.
The pilot plant will:
- Process 200kg to 300kg per hour
- Support mineral processing and hydrometallurgical refinement
- Produce ferroniobium and rare earth products
Potential product streams include:
- Rare earth concentrate
- Mixed rare earth carbonate (MREC)
- Rare earth oxides
The facility will form the foundation of the St George Technological Centre, which will support metallurgical testing, research, development and innovation.
This collaboration strengthens the Company’s technical capability while reinforcing its commitment to local partnerships.
A De-Risked, World-Class Resource Base
The Company acquired 100% of the Araxá Project on 27 February 2025. The project sits adjacent to world-leading niobium producer CBMM in a well-established mining region.
Niobium Resource
- 41.2 Mt at 0.68% Nb₂O₅
- Measured: 1.90 Mt at 1.19%
- Indicated: 7.37 Mt at 0.93%
- Inferred: 31.93 Mt at 0.59%
Rare Earth Resource
- 40.6 Mt at 4.13% TREO
- Measured: 1.90 Mt at 5.44%
- Indicated: 7.37 Mt at 4.76%
- Inferred: 31.37 Mt at 3.90%
These grades rank among the most compelling undeveloped niobium and rare earth resources globally.
The region offers:
- Established infrastructure
- Skilled workforce
- Mining-friendly jurisdiction
- Strong regulatory support
John Prineas summarised the opportunity:
“The combination of local and state government support, a world-class resource, the location in an established mining region and a first-class in-country team of engineers to drive project development provide St George with an outstanding opportunity to deliver on our vision for a globally significant rare earths and niobium mine at Araxá.”
Figure 3: Aerial image of the Araxá Project (outlined in red), alongside the neighbouring CBMM niobium operation and the Mosaic phosphate mine. [St George Mining]
Market Response and Share Price Activity
Investors have responded positively to the Company’s progress as it strengthens government partnerships and advances development at Araxá.
St George Mining Limited last traded at $0.098, rising 2.08% for the session. Over the past week, the stock has gained 4.26%, reflecting steady short-term momentum.
The longer-term performance stands out. Over the past 12 months, the Company has delivered a strong return of more than 600% – rising from a low of $0.015 to significantly outperforming both its sector and the broader market. The stock has exceeded sector performance by 120.71% and outpaced the ASX 200 by 153.40% over the same period.
Key figures at a glance:
- Market Capitalisation: $373.31 million
- One-Year Return: +600%
The Company has delivered exceptional 12-month growth, positioning itself as one of the stronger-performing emerging critical minerals stocks on the ASX.
Figure 4: 1-year stock market performance of St George Mining Limited [St George Mining Limited]
Strategic Importance in the Clean Energy Transition
Niobium strengthens steel and supports advanced alloys, while rare earths power:
- Electric vehicle motors
- Wind turbines
- Defence technologies
- Permanent magnets
Brazil holds strategic importance in global supply diversification, and Araxá sits at the centre of that opportunity.
The Company continues to progress drilling, technical studies and regulatory approvals with clear government backing.
Investors’ Outlook
St George Mining Limited now stands at a critical inflection point.
The confirmed tax exemptions reduce upfront capital requirements and enhance project economics. Strong state-level support lowers regulatory risk and strengthens long-term development certainty. The pilot plant and technological centre position the Company to move beyond exploration and into advanced development.
The Araxá Project combines:
- High-grade, globally significant resources
- Established mining jurisdiction
- Direct government fiscal incentives
- Technical partnerships
- Strong share price momentum
The Company’s +600% one-year return reflects rising market confidence. Continued drilling success, feasibility milestones and further downstream partnerships could serve as future catalysts.
