St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) has announced a significant milestone in its mission to develop a world-class rare earth and niobium supply chain. The Company has secured government support for a large-scale pilot plant as part of the St George Technological Centre, to be established at CEFET University in Minas Gerais, Brazil.
The initiative reinforces St George’s commitment to advancing downstream capabilities and strengthening Brazil’s position as a critical metals hub for the global energy transition.
Government Partnership and Downstream Collaboration
The Federal Centre for Technological Education of Minas Gerais (CEFET), a government-funded institution known for excellence in materials science and critical mineral research, will partner with St George to establish the Technological Centre. This facility will include a new pilot plant for rare earth and niobium processing and research on sustainable mining technologies.
Under the Memorandum of Understanding (MOU), CEFET will provide workspace rent-free, while St George will finance construction and equipment procurement. Importantly, the Company expects government concessions on import and sales taxes to halve equipment costs.
Figure 1: St George will partner with government-funded CEFET to establish a Technological Centre featuring a pilot plant for rare earth and niobium processing.
John Prineas, St George Mining’s Executive Chairman, stated: “The downstream collaboration with CEFET, which will include the commissioning of a new pilot plant, marks an important milestone in executing our strategy of an integrated mine-to-market operation.
“We are delighted with the strong government support for the St George Technological Centre and are proud to also be contributing to the community through the Centre being available for educational and industry research.
“The Federal Government agreement to partner with St George in developing the Technological Centre highlights the Company’s important role in developing Brazil’s critical metals supply chain.”
Pilot Plant Building on Proven Metallurgical Success
The new pilot plant will expand upon historical metallurgical results from a continuous nine-month pilot study previously completed at Araxá. That earlier study produced rare earth oxalate of over 99% purity, achieved an impressive 86% total rare earth recovery, and successfully removed radionuclides such as thorium and uranium.
According to Mr Prineas: “The previous pilot plant study for the Araxá Project delivered excellent results with a final rare earths product of 99% purity and 86% total rare earth recoveries which confirmed the potential to produce a rare earth product that could be used in commercial applications.”
He also noted that the new pilot plant would build upon the strong historical results by incorporating advanced and innovative processing methods, drawing on CEFET’s specialised expertise in materials science. He further indicated that the Company remained confident in its ability to develop optimised and sustainable production technologies that would underpin future downstream partnerships with strategic collaborators in Brazil, the United States, and other key markets.
Araxá Project: A World-Class Resource
The Araxá Project represents one of the largest and highest-grade carbonatite-hosted rare earth and niobium deposits in the Western world. St George holds 100% ownership of the project, which has a JORC-compliant resource of:
- Rare Earths: 40.6Mt at 4.13% TREO
- Niobium: 41.2Mt at 0.68% Nb₂O₅
Located adjacent to CBMM’s world-leading niobium operations, Araxá benefits from access to existing infrastructure, skilled labour, and supportive government frameworks for critical minerals.
The Company’s current 10,000m drilling program aims to expand and upgrade the resource base, with deeper zones already showing potential for superior beneficiation outcomes and reduced processing costs.
Building a First-Class Metallurgical Team
To advance the project’s development, St George has engaged leading metallurgical experts, including:
- Mr Alaercio Viera, Metallurgical Consultant – Formerly with Serra Verde (Brazil’s only producing rare earth mine), and process expert at CBMM and CMOC, the world’s top two niobium producers.
- Mr Gavin Beer, Principal Consultant at Met-Chem Consulting Pty Ltd, an internationally recognised rare earth metallurgist.
- Mr Peter Adamini, Technical Manager at Independent Metallurgical Operations (IMO), SGS Australia.
Mr Prineas added: “We are very pleased with the first-rate metallurgical team we have assembled. Australian-based Gavin Beer and Peter Adamini are internationally recognised for their expertise in rare earths and critical metals metallurgy while Alaercio Viera has hands-on metallurgical experience in rare earths and niobium mines in Brazil.”
He remarked that the team’s outstanding qualifications and proven experience reflected the exceptional quality of the Araxá Project, noting that St George’s success in attracting such highly skilled professionals underscored the project’s strong credentials and industry appeal.
Rare Earths and Niobium Market Outlook
The rare earth elements (REE) market is witnessing robust global demand, driven by clean energy technologies, electric vehicles, and advanced electronics. According to Grand View Research, the global rare earth elements market was valued at USD 3.95 billion in 2024 and is projected to reach USD 6.28 billion by 2030, growing at a CAGR of 8.6% (2025–2030).
This strong outlook reflects rising consumption of rare earth magnets in EV motors, wind turbines, and defence systems.
In parallel, the global niobium market, valued at USD 2.08 billion in 2024, is forecast to reach USD 3.23 billion by 2032, with a CAGR of 6.0% (2025–2032). Niobium’s use in lightweight, high-strength alloys for aerospace and automotive industries makes it essential for modern manufacturing.
These market trends underscore the strategic value of St George’s Araxá Project, which hosts both rare earth and niobium resources critical for the global decarbonisation and technological transition.
Strategic Collaboration with Brazil’s MagBras Initiative
St George’s integration with Brazil’s MagBras Initiative—a public-private partnership to create a domestic rare earth magnet manufacturing supply chain—further highlights its pivotal role in advancing the nation’s critical minerals strategy.
The Company is the first rare earth developer to provide product for magnet-making testwork under MagBras. This collaboration reinforces Brazil’s ambition to become a self-sufficient supplier of permanent magnets, aligning with global efforts to diversify away from China-dominated supply chains.
Investor Outlook
St George Mining continues to gain traction in the market, reflecting strong investor confidence. As of 7 October 2025, the Company’s share price stood at $0.125, with a market capitalisation of $367.5 million.
The one-year performance shows a +290.63% gain, outpacing both the sector average (+283.15%) and the ASX 200 (+281.42%).
With government backing, world-class partnerships, and an expanding high-grade resource, St George Mining Limited is emerging as a major force in the global rare earths and niobium markets. The establishment of the St George Technological Centre marks a defining step in the Company’s journey toward sustainable, value-added production in Brazil.
