ASX-listed St George Mining has signed partnership agreements with Brazilian scientific and research organisation Serviço Nacional de Aprendizagem Industrial (Senai) and nonprofit industrial federation Federação das Indústrias do Estado de Minas Gerais (FIEMG) to support the development of downstream production opportunities for niobium and rare-earth elements (REE) from the advanced, high-grade niobium/REE Araxá project in Minas Gerais, Brazil.

The Araxá project hosts extensive high-grade niobium and rare earths with drilling returning more than 500 intercepts of high-grade mineralisation starting from surface, with grades of up to 8% niobium pentoxide and 33% total rare earth oxides.

St George is negotiating certain amendments to the agreement for the purchase of the Araxá project to allow additional time for completion of the transaction.

While the key terms of the agreement, including the purchase price, are expected to remain unchanged, the amendments to the sale agreement will result in a delay in closing the transaction, the company said on December 12. The transaction is now expected to close in the first quarter of next year.

“The partnership agreements signed with Senai will support the development of downstream opportunities for St George, further integrating our proposed Araxá operation into Brazil’s supply chains for critical metals.

“Senai has recognised the significance of our proposed Araxá operation and agreed to work with us to optimise the efficiency and sustainability of potential mining and processing activities. These are important developments for the advancement of the Araxá project,” St George Mining executive chairperson John Prineas said.

The memorandum of understanding (MoU) signed with Senai and FIEMG has an initial term of five years. The MoU establishes a framework for cooperation between St George, Senai and FIEMG to produce rare earth magnets at the Lab Fab facility in Lagoa Santa, Minas Gerais, which is the first permanent magnet making facility in Brazil and Latin America.

The Lab Fab facility is scheduled to begin production this year with initial capacity to produce 100 t/y of permanent magnets and plans to double that capacity within the first three years.

Senai has entered into the MoU through the Rare Earths Institute of Senai’s Technology and Innovation Centre.

Areas of collaboration include the supply of raw materials by St George for pilot production of rare earth magnets, as well as the promotion of the production of rare earth magnets made in Brazil to other parties in the clean energy sector.  The collaboration also includes research studies, testwork and other specialised technological services to support rare earths magnet production.

The existing pilot plant at the Araxá project will be assessed by Senai for potential reassembly and commissioning for use in the completion of metallurgical testwork and production of sample products.

St George and Senai have also agreed to cooperate on developing sustainable processes to produce niobium and rare earths products. Efforts include technical training and upskilling of St George’s project team in Brazil.

Senai’s facilities in Lagoa Santa, Belo Horizonte and Itauna will each participate in this undertaking.