St George Mining Limited (ASX: SGQ) has taken a significant step in building its global rare earths supply strategy, signing a Memorandum of Understanding (MOU) with Técnicas Reunidas S.A., a Spain-based global engineering powerhouse with proprietary rare earths processing technology.
The agreement positions the Company to potentially access the vast European market for rare earths from its 100%-owned Araxá Niobium-REE Project, located in the Brazilian State of Minas Gerais.
The MOU creates a framework for Técnicas Reunidas to conduct processing test work on rare earth samples from the Araxá Project using the Company’s proprietary RARETECH® technology — a system already deployed or tendered across markets including the United States, Japan, Austria, Switzerland, Australia, Spain, South Africa, Brazil, and Turkey.
Figure 1: The Araxá Niobium-REE Project in Brazil’s Minas Gerais state and Técnicas Reunidas in Spain are now linked by a landmark MOU, positioning St George Mining to channel its world-class rare earths resource directly into European supply chains. [Google Maps]
Técnicas Reunidas: Europe’s Rare Earths Processing Powerhouse
Técnicas Reunidas is not a new entrant to global engineering. Over its 66-year history, the Company has built an extraordinary track record across some of the world’s most demanding industrial environments. Key credentials include:
- Completed more than 2,600 projects across over 70 countries
- Expertise in designing and constructing large-scale industrial plants
- Leadership in clean fuels, natural gas, chemicals, and energy transition technologies
- A workforce of nearly 14,000 highly qualified engineers, headquartered in Spain
Critically, Técnicas Reunidas holds a leading role in the European Union-funded PERMANET Project — an initiative that aims to create the first European value chain for the manufacture of rare earth permanent magnets. The project spans 12 countries and 32 partners, both private and public, working collectively to ensure a resilient supply of Rare Earth Permanent Magnets across Europe.
Figure 2: Técnicas Reunidas engineering headquarter in Spain. [Técnicas Reunidas]
Inside the Deal: Test Work, Technology and the Road Ahead
The initial scope of work under the MOU tasks Técnicas Reunidas with testing the suitability and efficiency of its RARETECH® technology specifically for Araxá’s rare earth materials. The test work will focus on two key processing objectives:
- Refining: Refinement of rare earths mineralisation [Including the production of mixed rare earth carbonate (MREC) and rare earth oxide]
- Element separation: Separation and splitting [Isolating individual rare earths elements for downstream use].
Should the chemical and metallurgical test work confirm the viability of RARETECH® for the Araxá Project, the agreement opens the door to further-scope deliverables, including:
- Optimisation of a RARETECH®-based processing flowsheet for the Araxá Project
- A preliminary engineering study with full CAPEX/OPEX estimates
- Development of proprietary processing methods tailored for Araxá’s specific rare earths
St George will bear the costs of work completed by Técnicas Reunidas, with fee negotiations currently underway. Importantly, nothing in the MOU creates an obligation of exclusivity — St George retains the freedom to pursue additional partnerships with other engineering firms, strategic investors, and commercial counterparties in relation to the Project.
Executive Chairman Speaks on the Alliance
St George Mining’s Executive Chairman, John Prineas, expressed strong confidence in the strategic value this partnership brings to the Company’s downstream processing ambitions.
“We are very excited to be working with Tecnicas Reunidas to further assess the optimal processing route for the Araxá rare earths and to potentially access the vast European market for rare earths.”
Mr Prineas further reinforced the significance of the partner’s unrivalled European reputation in the rare earths sector:
“The reputation of Tecnicas Reunidas in Europe is second to none regarding rare earths processing and we are very pleased to be able to access their expertise to further develop our downstream processing strategy for our Araxá rare earths.”
The Executive Chairman also underscored the sheer scale of the Araxá deposit’s potential to supply global markets:
“The sheer volume of our rare earths deposit provides an opportunity for St George to deliver into supply chains around the world — including Brazil, the US and Europe.”
Figure 3: John Prineas, Executive Chairman of St George Mining Limited [LinkedIn/John Prineas]
Araxá: South America’s Largest Hard-Rock Rare Earths Deposit
The Araxá Project is not merely a promising exploration asset — it already holds the distinction of being the largest hard-rock rare earths deposit in South America, surpassing even the Mountain Pass mine in California, which has drawn substantial investment from both the US government and US private companies.
A major resource upgrade announced on 3 March 2026 confirmed a total JORC 2012 Mineral Resource of 95.47 million tonnes (Mt) across both reporting cut-offs. The table below summarises the resource at a 2% TREO cut-off:
Table 1: JORC 2012 Mineral Resource at 2% TREO cut-off (ASX Release, 3 March 2026)
The region surrounding Araxá also brings with it a long history of commercial niobium production, established infrastructure, a skilled local workforce, and government support for expedited project approvals. St George has assembled a highly experienced in-country team and maintained strong relationships with key Brazilian authorities to drive the Project through exploration and development studies.
Figure 4: An aerial view of the Barreiro carbonatite complex highlighting the Araxá Project (outlined in red) [St George Mining]
A Three-Continent Downstream Strategy Taking Shape
St George has now established a multi-pronged international downstream strategy. With the European alliance firmly in place through the Técnicas Reunidas MOU, the Company’s global reach now spans three continents:
- Brazil — with MagBras, targeting the domestic permanent magnet supply chain
- United States — with REalloys, tapping into surging US demand for domestically sourced rare earth materials
- Europe — with Técnicas Reunidas, opening access to the EU’s growing rare earth permanent magnet manufacturing ecosystem via PERMANET
The European partnership completes a formidable triangle of downstream reach, positioning the Company’s Araxá rare earths to supply critical inputs to three of the world’s most strategically important rare earths markets, and to benefit from the geopolitical drive by the US, EU, and Brazil to reduce dependence on Chinese-controlled rare earths supply chains.
Investors’ Outlook
Figure 5: St George Mining share price performance in the last 12 months [St George Mining]
St George Mining‘s stock continues to reflect strong market conviction in the Company’s rare earths growth story. As of the close of trade on 31 March 2026, SGQ shares traded at $0.115, supported by the following performance metrics:
The extraordinary one-year return of +600%, more than 600 percentage points ahead of the broader ASX 200, reflects the market’s growing appreciation of the Araxá Project’s world-class scale, the Company’s execution track record, and its rapidly expanding global network of downstream partnerships. With the European alliance now in place, St George Mining appears increasingly well-positioned to transform the Araxá deposit into a cornerstone supplier of rare earth materials across multiple continents.
Disclaimer: This editorial is for informational purposes only and does not constitute financial or investment advice. This announcement includes forward-looking statements that are subject to known and unknown risks, uncertainties and other important factors, many of which are beyond the control of St George Mining Limited. Readers should seek independent professional advice before making any investment decisions. All securities transactions involve risks, which include the risk of adverse or unanticipated market, financial or political developments.
Last modified: March 31, 2026
