St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) has taken a decisive step toward developing its world-class Araxá Niobium-Rare Earths Project in Brazil, announcing the acquisition of strategic land parcels suitable for processing facilities and environmental conservation.
The Company has entered into a binding agreement to acquire 166 hectares located less than 2km from the Araxá Project mining tenure in Minas Gerais, Brazil. The land is zoned for mining and industrial use and represents an ideal setting for the installation of processing facilities to support a potential mining operation.
Mirroring Success at the Barreiro Carbonatite
The strategic positioning of processing facilities away from the mining tenure mirrors the successful setup at the two existing operations on the Barreiro carbonatite. CBMM’s world-leading niobium mine, which supplies around 80% of global niobium, and Mosaic’s large phosphate operation both position their processing facilities outside the richly mineralised carbonatite.
This approach ensures that no part of the mineral deposits is rendered inaccessible by infrastructure. St George’s drilling at Araxá continues to demonstrate that the mining tenure is highly mineralised across a very broad footprint, making this land acquisition a critical planning decision.
Figure 1: Google satellite image of the Barreiro Carbonatite showing CBMM and Mosaic operations, St George mining tenure (red area), and newly acquired project land for future industrial area. [St George Mining]
A Dual-Purpose Land Strategy
Beyond the industrial land, St George has acquired an additional 163 hectares located 19.5km from the proposed processing site. This parcel comprises mature vegetation, including Atlantic forest, and will be transformed into a conservation green zone.
The conservation area will reduce greenhouse gas emissions from the proposed mining operation and provide environmental protection for the operational licensing process. This demonstrates St George’s commitment to responsible development aligned with Brazilian environmental standards.
Figure 2: Google satellite image showing the conservation area on the west (multi-green area), future industrial area (yellow area) as well as the mining tenure of St George’s Araxá Project (red area). [St George Mining]
Financial Terms:
- Industrial land: 14 million Brazilian Reais (~A$3.8 million), payable in two equal instalments
- Conservation land: 6 million Brazilian Reais (~A$1.6 million), fully paid
- Both parcels were acquired from local farming families unrelated to St George
The Araxá Resource: Scale Meets Grade
St George acquired 100% of the Araxá Project on 27 February 2025. The project sits adjacent to CBMM’s operations in a region with more than 40 years of commercial niobium production history.
The April 2025 Mineral Resource Estimate confirmed Araxá as a globally significant deposit:
Niobium Resource:
- Total: 41.2 Mt at 0.68% Nb₂O₅
Rare Earths Resource:
- Total: 40.6 Mt at 4.13% TREO
An upgrade to the Mineral Resource Estimate is scheduled for this quarter, with expansion drilling demonstrating significant potential for resource growth.
Niobium Market Fundamentals Support Fast-Track Development
The global niobium market presents a compelling opportunity for new producers. With only three primary niobium producers worldwide, supply concentration has ensured pricing stability and steady growth.
According to Project Blue’s December 2025 analysis, niobium demand from steel applications is forecast to grow at approximately 6% per annum through 2035. More significantly, battery sector demand could surge at 31% per annum as niobium oxide finds applications in next-generation energy storage.
Figure 3: Scenarios for niobium demand from steel applications showing base case growth of 6% CAGR through 2035. [St George Mining]
The US Government ranks niobium as the second most important strategic mineral. Analysis indicates that losing access to imported niobium would cause the second-largest negative impact on US GDP among all listed critical minerals. This creates strong demand for a new, reliable Western Hemisphere supply.
Ferroniobium prices in Europe are forecast to rise from current levels around US$47/kg to US$55/kg by 2035, providing a supportive pricing environment for new entrants.
Figure 4: Outlook for ferroniobium prices Europe 66% FeNb (US$/kg). [St George Mining]
Accelerated Development Pathway
John Prineas, St George Mining’s Executive Chairman, emphasised the strategic importance of the land acquisition:
“Securing this strategically located landholding is an important step in de-risking the development of the Araxá Project. We know we have a world-class Mineral Resource at Araxá that is only going to get bigger and better, so our attention is firmly focused on also enabling the fast-tracked development of a significant niobium-rare earths mining operation.”
He highlighted several factors supporting rapid development:
- Location in the world’s premier niobium mining district
- Established mining community supportive of development
- Free-digging high-grade mineralisation starting at surface
- Simple technical model for extraction
- Government backing for fast-tracked permitting
St George is advancing metallurgical test work to characterise its proprietary process and flow sheet while conducting technical studies to feed into economic analysis. The Company has established strong relationships with the State of Minas Gerais, including around favourable tax regimes, and is forging downstream alliances in Brazil and the US.
Dual Commodity Optionality
The Araxá resource provides St George with flexibility to stage development of niobium and rare earths operations based on market conditions. The rare earth resource already represents the largest hard-rock carbonatite rare earth resource in South America.
This positions Araxá alongside major producers like Lynas’ Mt Weld and MP Materials’ Mountain Pass operations. The new project land has the capacity to host facilities for both niobium and rare earth processing, providing operational flexibility.
Investor Outlook
St George Mining’s strategic land acquisition demonstrates methodical planning toward becoming a near-term niobium and rare earths producer. The Company’s approach of securing processing infrastructure in parallel with resource drilling reflects confidence in the project’s scale and development potential.
With only three primary niobium producers globally and the growing strategic importance of secure supply chains, Araxá’s location in an established mining district with supportive infrastructure positions St George advantageously.
As of 16 February 2026, St George Mining shares were trading at A$0.102, with a market capitalisation of approximately A$377.12 million.
Figure 5: SGQ Price Chart [ASX]
The 52-week trading range stands at A$0.015 to A$0.180, reflecting growing market recognition of the Araxá Project’s strategic value as the Company advances toward development studies and resource expansion.
