As a landmark move, St George Mining Limited (ASX: SGQ) (“St George” or “Company”) has delivered Brazil’s first-ever processed rare earths sample for magnet production research under the national MagBras initiative. This marks a major milestone for St George’s fully owned Araxá Project and supports Brazil’s wider ambition to develop a complete, self-sufficient rare earths supply chain.
Strategically Located Araxá Project [St George Mining]
As global markets shift away from China for critical minerals, Brazil emerges as a key player due to its large undeveloped reserves of rare earth elements and niobium. With Brazil’s limited access to magnet-grade rare earth oxides, St George becomes the first mining company to support local supply by sending the samples to MagBras.
This brings the Araxá Project into focus as an early part of Brazil’s domestic rare earths development, also supporting the company’s standing amid rising global demand for critical minerals.
Executive Chairman John Prineas said:
“We were honoured last year when SENAI and FIEMG selected St George as a partner for MagBras – Brazil’s first proposed REE permanent magnet facility. We are now delighted to be the first rare earths miner in Brazil to provide a rare earths product to MagBras for downstream studies into magnet production in Brazil.”
First to Supply for Magnet Production Studies in Brazil
St George Mining is the first rare earths company in Brazil to supply processed material for downstream studies into magnet production. The company supplied a 30kg bulk sample of rare earth oxalate to develop a full domestic supply chain for permanent magnets.
This rare earth oxalate was produced from pilot-scale chemical refinement of material from the Araxá Project in 2012–13, prior to St George’s ownership. St George continues to advance metallurgical studies to identify the optimal processing flowsheet for future production.
Inside the MagBras Project
The MagBras Project, launched in 2024, is a national effort to industrialise Brazil’s rare earth resources and reduce dependence on imported magnets. Backed by government funding and institutional support, the project aims to unlock value from Brazil’s vast rare earth endowment, the third-largest globally.
MagBras is a public-private partnership backed by the National Service of Industrial Learning (SENAI) and funded by the Minas Gerais Research Development Foundation (Fundep). Led by the Federation of the Industries of Minas Gerais (FIEMG), the initiative unites companies across the rare earths value chain, from mining to manufacturing.
At its core is the Lab Fab facility in Minas Gerais, said to become Latin America’s first permanent magnet production hub. St George Mining has signed an MoU to join the initiative as a strategic rare earths supplier.
U.S. Eyes Brazil for Critical Minerals Supply
Currently, over 80% of the global magnet supply originates in China. Governments and industries worldwide are seeking to diversify supply sources, and Brazil, home to the third-largest rare earth mineral reserves, is seen as a potential hub for rare earth minerals.
Global Rare Earth Deposits [Reuters]
The United States, in particular, has identified Brazil as a key potential supplier. Early discussions began for a trade deal focused on niobium and rare earths under the Trump Administration. This aligns with the broader U.S. policy push to secure non-China supply chains for critical inputs used in defence, electronics, and renewable energy.
What It Means for St. George Mining
Recent multi-billion-dollar investments by the U.S. Department of Defence and Apple Inc. into MP Materials (NYSE: MP), the only active rare earths producer in the U.S., show the effort to secure domestic supply chains and reduce reliance on China for critical minerals. Notably, the Department of Defence has introduced a US$110/kg price support for neodymium-praseodymium (NdPr) through a 10-year agreement with MP Materials.
For emerging producers like St George Mining, the push to strengthen non-Chinese supply chains creates fresh opportunities to connect with international partners beyond traditional supply chains. It also paves the way for potential supply agreements, joint ventures, and government backing as the MagBras initiative moves closer to commercial production.
Araxá Project’s Expanding Resource
The Araxá Project is emerging as one of Brazil’s most promising rare earths and niobium assets. The project hosts a maiden JORC-compliant resource of 40.64Mt @ 4.13% TREO for rare earths and 41.2Mt @ 0.68% Nb₂O₅ for niobium. Drilling work is underway over 9,000 metres to expand and refine the resource, with mineralisation open in all directions.
Maiden Resource Estimate for Araxá Project: Niobium and Rare Earths Classification and Grades [St George Mining]
Backed by strong geology, solid infrastructure, and its location near CBMM’s world-class niobium operations, Araxá is on track for sustained project growth.
Investor Outlook and Financials
Beyond Brazil, St George Mining is also evaluating strategic partnerships in the United States and other markets focused on building ex-China rare earths supply chains.
The Araxá Project’s strong resource base and favourable location position it as a significant contributor to Brazil’s rare earths sector. With government support and an active drilling program underway, the project is advancing steadily toward development milestones.
- As of July 29, 2025, St George Mining Limited (ASX: SGQ) is trading at AUD 0.041 per share, within a 52-week range of AUD 0.015 to 0.045.
- St George Mining recently announced a placement to raise AUD 5 million, offering shares at AUD 0.038 per share, a 13.1% premium to the 30-day VWAP, to fund continued exploration at the Araxá Project.
- The Company’s current market capitalisation stands at approximately AUD 109 MILLION.
- Funds from the recent AUD 5 million capital raising will be used by the Company to upscale the drill program underway at the Araxá Project with 5 drill rigs in operation to expand the existing high-grade resource.
Final Thoughts
With active drilling and growing international interest, especially from the U.S., the Araxá project is gaining traction as Brazil works to build a homegrown rare earth supply chain. Given the major milestone of rare earth delivery to magnet production studies, St George’s potential will benefit from the global move away from China’s dominance in critical minerals.
