ASX-listed St George Mining has partnered with the Brazilian research and innovation agencies to advance the downstream processing and production of niobium and rare earths elements (REE) from its high-grade Araxá project in Minas Gerais.

With 60% of the venture funded by the Brazilian government, St George will retain exclusive rights to all intellectual property developed, royalty-free, for the next ten years.

The specific focus of the co-venture between Brazilian Association for Research and Industrial Innovation, or EMBRAPII, and the National Industrial Educational Services, or SENAI, is to improve the technical knowledge on the separation of REEs from niobium to produce both commercial REE and niobium products from mineralisation at the Araxa deposit – maximising the use of mineral resources and minimising waste. 

St George and the agencies will collaborate through technical meetings, research studies and test works with EMBRAPII and SENAI to provide specialised technological services. The ore samples used in the studies will be provided by St George from the Araxá project. 

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 up to  8% niobium pentoxide (Nb2O5) and 33% total rare earth oxide (TREO).

St George says this agreement builds on the company’s relationship with SENAI following the signing of a memorandum of understanding between St George and SENAI in December to cooperate on research, development and production of rare earth magnets at SENAI’s lab fab facility in Minas Gerais.

The signing of the agreement follows significant progress made by St George since first announcing this acquisition in August 2024.

Notably, St George has built out its in-country team, which includes the former Minister of Mines and Energy in Brazil, and other senior executives with Brazilian mining and Niobium experience.

The company has also secured an offtake agreement with a leading global trading house in steel materials in niobium for a minimum of 20% of the project output. The company has also secured an agreement with the State of Minas Gerais to fast-track approvals for the project

St George also announced capital raisings totalling $23-million to fund the acquisition and working capital, including $20-million announced this week, and $3-million completed in December.

“The technical collaboration agreement is a key step to support the development of an optimum processing flowsheet for the Araxá project. We are delighted to have finalised this agreement with SENAI and EMBRAPII which has the potential to provide a major breakthrough in the efficiency and sustainability of mining and processing activities at Araxa.

“Signing of this technical collaboration agreement is a testament not just to Araxá’s potential but also to the quality and experience of the in-country team that St George has assembled to drive the project forward. 

“We look forward to reporting on the results of the downstream program as we continue to position the Project as a potential near-term niobium and rare earths mining operation,” says St George executive chairperson John Prineas.