China has tightened export controls on rare earths and permanent magnets. This has raised global concerns about the security of critical mineral supply chains. In this context, St George Mining’s 100%-owned Araxá Project in Brazil has become increasingly significant. St George Mining Limited (ASX: SGQ) (“St George” or “the Company”) has firmly positioned itself at the forefront of a rapidly evolving rare earths market. The Araxá Project hosts one of the world’s largest and highest-grade hard-rock rare earth resources.
China’s Export Restrictions Create Global Supply Challenges
On 4 April 2025, China’s Ministry of Commerce announced new export controls on several rare earth elements and magnets. These include samarium, gadolinium, terbium, dysprosium, lutetium and yttrium.
China currently processes about 90% of the world’s rare earths and magnets. These new measures are set to disrupt industries in the United States and other countries that depend on Chinese supply.
Figure 1: The dominance of China in both mining and refining magnet REE [Source: IEA/Reuters]
This follows China’s December 2023 ban on exporting rare earth extraction and separation technologies, which gave China more control over global rare earth processing. The world now faces a pressing need to develop alternative and reliable sources.
St George Offers a Sustainable Alternative
The Araxá Project presents a viable and strategic alternative. It contains a JORC-compliant resource of 40.64Mt @ 4.13% TREO. The deposit is suited for low-cost, open-pit mining with mineralisation starting at the surface.
The Company believes this high-grade, near-surface deposit can support a long-life mining operation. The deposit remains open in all directions, and further drilling will soon begin to expand the resource.
“This development is evidence that single-source supply chains are a risk, from China or anywhere else,” said John Prineas, Executive Chairman of St George Mining.
“The need for a sustainable rare earths industry outside China has never been stronger.”
High-Grade and Globally Competitive Resource
Figure 2: Comparative analysis of leading hard-rock rare earth deposits (ex-China)
The Araxá resource contains 1.7Mt of TREO and a high NdPr grade of 0.78%. This equals 320,000 tonnes of contained NdPr—the key input for permanent magnets. The Araxá Project hosts high-grade niobium and rare earth mineralisation, with assays reaching 82,970ppm (8.29%) Nb₂O₅ and 329,800ppm (32.98%) TREO. This mineralisation remains open in every direction, indicating strong potential to expand the current Mineral Resource Estimate through further drilling.
NdPr magnets are essential in sectors like defence, electric vehicles, renewable energy, smartphones and robotics.
In comparison, Lynas Rare Earths’ Mt Weld mine in Australia holds a 106Mt resource at 4.1% TREO and 0.61% NdPr. Araxá’s NdPr grade is higher, and its resource size is competitive.
“St George’s Araxá Project has a total JORC resource of 40.64Mt @ 4.13% TREO,” said Mr Prineas.
“This illustrates the potential value upside for St George as we progress through development studies and resource expansion drilling.”
Figure 3: Bubble chart illustrating Araxá’s global significance: NdPr-to-TREO ratio (Y-axis), TREO grade (X-axis), and resource size (bubble size) highlight its high grade and large-scale potential.
Participation in Brazil’s MAGBRAS Initiative
St George has joined the MAGBRAS Initiative. This program aims to create Brazil’s first permanent magnet-making facility. Partners include auto giant Stellantis and leading Brazilian rare earth producers.
Brazil holds the world’s third-largest rare earths reserves. The MAGBRAS program will help develop a local supply chain, from mining to finished magnets.
The Araxá Project is well-positioned to support this vision. The Company has also signed a cooperation agreement with the State of Minas Gerais to accelerate approvals.
Metallurgical Testwork Underway
St George has begun metallurgical testing using drill samples. The work will define processing options for niobium and rare earths products. It will also explore potential by-products like magnetite, phosphate and barite.
This testing is being conducted with SENAI and EMBRAPII. Both are leading scientific agencies in Brazil.
The Company’s in-country team includes former CBMM executives and engineers. These professionals bring extensive experience in mineral processing and project development.
Strategic Location Supports Project Development
The Araxá Project lies in Minas Gerais, a Tier 1 mining jurisdiction. The region has a long history of mining and a skilled workforce. It also has access to roads, power and transport infrastructure.
Over 95% of the current resource sits within 100 metres of surface. This supports the case for early-stage open-pit mining. Deeper mineralisation exists but is not yet included in the current estimate.
St George acquired the Araxá Project on 27 February 2025. Since then, the Company has moved quickly to define the resource and advance development.
End Note
St George’s Araxá Project is a rare earth deposit of global significance. Its high grades, scalability and near-surface resources make it a standout project.
As global supply chains face uncertainty, Araxá offers a sustainable solution. With development studies underway and drilling about to begin, the Company is positioning itself for long-term success.
“China’s increased restrictions on the export of rare earths and permanent magnets have significantly disrupted the global supply chains,” said Mr Prineas.
“One of the largest producing hard-rock rare earths mines outside of China is the Mt Weld mine… St George’s Araxá Project… illustrates the potential for a commercial rare earth mining operation at Araxá.”
Investor’s Outlook
St George Mining Limited (ASX: SGQ) has seen a significant uplift in investor sentiment following the strategic advancement of its Araxá Rare Earths Project.
Market Response
SGQ’s share price rose by 21.05% today, reaching $0.023. The stock has delivered a 27.78% return over the past week and is up 15.00% over the past month and year, outperforming the ASX 200 by 14.57% and its sector by 30.27% on a one-year basis.
This momentum reflects growing investor confidence in the Company’s ability to position Araxá as a key rare earth asset outside China, particularly amid increasing geopolitical and supply chain concerns.
REE Market Outlook
The global rare earth elements (REE) market was valued at USD 3.95 billion in 2024 and is forecast to grow at a CAGR of 8.6% through 2030. Demand is being driven by critical applications in permanent magnets and automotive catalysts—core uses of neodymium-praseodymium (NdPr), a key focus at Araxá.
This growth outlook, combined with St George’s recent milestones—JORC resource announcement, participation in Brazil’s MAGBRAS Initiative, and the launch of metallurgical testwork—strengthens the Company’s appeal as a high-leverage opportunity in the critical minerals space.
Investors seeking exposure to the rare earth megatrend, particularly with geopolitical diversification outside China, may find SGQ well positioned for further upside.
