St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) is taking its Brazil-based Araxá Project directly to the heart of US policymaking. The Company announced the appointment of Ervin Graves Strategy Group, a leading Washington DC government relations firm, to deepen engagement with US government agencies and private enterprises focused on critical mineral supply chains.
The move comes just days after the Trump administration announced a USD 1.6 billion funding package for USA Rare Earth (NASDAQ: USAR), signalling an aggressive federal commitment to building Western Hemisphere rare earths supply chains independent of China.
Strategic Timing Meets Policy Alignment
St George’s Washington appointment positions the Company within a rapidly evolving US policy landscape. The Trump administration’s December 2025 National Security Strategy explicitly commits to “expand and consolidate US interests in the Western Hemisphere, particularly with regard to critical minerals.”
The strategy’s language is direct: “The Western Hemisphere is home to many strategic resources that America should partner with regional allies to develop, to make neighbouring countries as well as our own more prosperous.”
John Prineas, Executive Chairman of St George Mining, explained the rationale: “Our 100%-owned Araxá Project aligns closely with US policy to support development of critical minerals in the Western world. We are excited to have engaged Ervin Graves to progress the potential for St George to attract government funding support and downstream industry partnerships in the US.”
Ervin Graves: Connected at the Highest Level
The Ervin Graves team has worked at senior levels within the US government. Notably, the firm includes the Chief of Staff to the Secretary of War during the announcement of the Pentagon’s multi-billion-dollar funding package for MP Materials.
Figure 1: Ervin Graves Strategy Group [LinkedIn]
The advisory mandate is clear: facilitate St George’s engagement with US government bodies and private sector entities to explore commercial arrangements and public-private partnerships supporting Araxá’s development.
Araxá: A World-Class Resource in the Right Location
St George’s Araxá Project sits in Minas Gerais, Brazil’s premier mining jurisdiction. The region offers established infrastructure, skilled labour, and proximity to CBMM’s world-leading niobium operations.
The project’s April 2025 JORC-compliant Mineral Resource Estimate ranks among the most significant globally:
Rare Earths (cut-off: 2% TREO):
- Total: 40.6Mt @ 4.13% TREO
Niobium (cut-off: 0.2% Nb₂O₅):
- Total: 41.2Mt @ 0.68% Nb₂O₅
Araxá hosts the largest and highest-grade carbonatite rare earths deposit in South America and ranks as the second-highest grade globally behind MP Materials’ Mountain Pass mine in the US.
High-grade mineralisation begins at the surface, creating potential for a low-cost, open-pit operation.
Figure 2: 3D perspective showing Araxá’s rare earths grades and scale [St George Mining]
Western Hemisphere: The New Critical Minerals Battleground
The Trump administration’s focus on the Western Hemisphere represents a fundamental shift. Two recent funding announcements illustrate the magnitude of commitment:
- USA Rare Earth (NASDAQ: USAR): USD 1.6 billion funding package announced 26 January 2026, comprising USD 277 million in federal grants and USD 1.3 billion in senior secured loans. The US government will take a 10% equity stake.
- Serra Verde (Brazil): USD 465 million loan approved in November 2025 from the US International Development Finance Corporation for Brazil’s Pela Ema rare earths mine in Goiás state.
Figure 3: Brazil’s Pela Ema rare earths mine in Goiás state [Bloomberg]
Both projects underscore the administration’s “re-shoring” strategy for critical minerals supply chains, with Brazil positioned as a key partner.
According to the National Security Strategy: “The US Government will identify strategic acquisition and investment opportunities for American companies in the region and present these opportunities for assessment by every US Government financing program.”
Building Momentum with US Industry
St George has already established a downstream strategic alliance with REalloys Inc, a leader in the US rare earths sector. Announced on 21 January 2026, the partnership connects Araxá with a fully integrated mine-to-magnet supply chain serving US government organisations.
REalloys’ recent appointment of GM Defense President Stephen duMont as Non-Executive Chairman further strengthens its defence sector credentials.
Market Context: Rare Earths and Niobium Demand Surging
Rare Earth Oxides (REO) Market
The global REO market is forecast to expand from USD 6.2 billion in 2024 to USD 18.2 billion by 2034, reflecting a CAGR of 12.6%. Demand is driven by electric vehicles, clean energy, defence, and aerospace applications.
Magnet rare earths (neodymium, praseodymium, dysprosium, terbium) command premium pricing due to limited non-Chinese supply.
Niobium Market
The niobium market is projected to grow from 79.68 kilotons in 2025 to 103.18 kilotons by 2030 at a CAGR of 9.92%. Steel production remains the dominant application, while battery technology offers emerging demand.
The US has no domestic niobium production despite classifying it as a top 10 critical mineral.
Figure 4: Chart showing niobium market growth trajectory 2025-2031 [Mordor Intelligence]
Project Status and Next Steps
St George has negotiated government support for expedited approvals in Brazil. The Company participates in the Brazilian Government’s MagBras Initiative, aimed at establishing an integrated rare earths supply chain entirely within Brazil.
In October 2024, St George signed a cooperation agreement with the State of Minas Gerais to fast-track permitting for Araxá.
The Company is advancing a 10,000-metre drilling campaign, with assays expected throughout Q1 2026. Metallurgical test work and scoping studies are progressing in parallel.
Investor Outlook
As of 28 January 2026, St George Mining (ASX: SGQ) shares are trading at AUD 0.117, positioning the Company within its 52-week range of AUD 0.015 to AUD 0.180. The Company’s market capitalisation stands at approximately AUD 418.54 million.
Figure 5: SGQ Price Chart [ASX]
Recent developments have attracted institutional attention. The appointment of a Washington DC adviser, combined with the Company’s existing US downstream alliance and strong resource base, positions St George as a serious participant in US-backed critical minerals development.
Prineas stated: “With a location in an established mining region, existing infrastructure and supportive community stakeholders, the Araxá Project stands out among its peers as having the potential for a fast-track to development and to emerge as a near-term contributor to critical minerals supply chains being established in Brazil and the US.”
The strategic adviser appointment marks another step in St George’s methodical approach to positioning Araxá within evolving US policy frameworks and funding opportunities.
