St George Mining’s MoU with Invest Minas to accelerate Araxá approvals

• St George Mining signs MoU with Invest Minas to accelerate regulatory approvals for the Araxá project
• Company will contribute expertise and network to develop critical mineral supply chains in Brazil
• Minas Gerais state support will de-risk project and accelerate its execution timeline

Special Report: Fast-tracked approvals for St George Mining’s Araxá niobium-rare earths project are on the cards under the memorandum of understanding reached with Brazil’s State of Minas Gerais.

In return, the company will collaborate with state agency Invest Minas where possible on developing projects such as Araxá that can support domestic supply chains for niobium, rare earths and related downstream products – including magnets – that are critical to the clean energy transition.

St George Mining (ASX:SGQ) notes that the MoU is a selective initiative by the state to form strategic partnerships with private projects that can contribute to the local economy in a sustainable manner.

As such, the selection of Araxá as one of the projects recognises its importance at the local, state and federal levels in Brazil.

“We are delighted to strengthen our relationship with the State of Minas Gerais with an agreement to progress the Araxá project in a way that creates sustainable economic growth for the state,” SGQ executive chairman John Prineas said.

“The support from the state for a streamlined approvals pathway will significantly de-risk the project and should accelerate the project’s execution timeline.

“The collaborative arrangement will also see St George contribute our expertise and network – both through the team in Perth and our newly established first-rate team in Brazil – to develop strong supply chains in Brazil for our proposed suite of critical metals products.

“Invest Minas’ recognition of the potential positive economic impact of the Araxá project on the state further highlights the tremendous value and importance of the asset St George is acquiring.”

Araxá project

Araxá is immediately adjacent to the CBMM project, the world’s largest producer of niobium, and has access to infrastructure and labour.

Historical exploration has already discovered extensive high-grade niobium and REE mineralisation, with drilling returning >500 intercepts of +1% niobium with ultra-high grades of up to 8% niobium and 33% total rare earth oxides.

Mineralisation starts at surface and is open in all directions, providing plenty of room for expansion given that less than 10% of Araxá has been effectively drilled and drilling beyond 50m from surface has been limited.

SGQ also recently signed a MoU with global trading house SKI Hong Kong to support development of the project by establishing the framework for collaboration on marketing, offtake and financing aspects of the project with the goal of progressing feasibility studies for a mine development.

SKI – one of the world’s leading traders in specialty steel materials and ferro alloys with a focus on niobium, manganese and chrome products – may secure at least 20% of the project’s potential niobium products, provide funding support through an investment in the company and/or pre-payment for offtake, and secure marketing rights for niobium products.

This article was developed in collaboration with St George Mining, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.