St George Mining (ASX:SGQ) has entered into a collaboration agreement with the State of Minas Gerais and Lima & Pergher Group to assess the establishment of the Minas Gerais Rare Earths Processing Centre in Brazil.
The protocol of intent sets a framework to evaluate the potential centre as a new rare earths processing hub.
The centre will focus on midstream rare earths supply chain operations to refine feedstocks including rare earths concentrate, mixed rare earth carbonate, and oxalate.
It also aims to produce magnet-making materials for downstream end-users, including MagBras, which is building Brazil’s first rare earth magnet-making facility.
Executive Chairman John Prineas says the collaboration represents an opportunity to strengthen Brazil’s domestic rare earths supply chain.
“We are delighted to expand our relationship with the State of Minas Gerais with this exciting plan to strengthen Brazil’s domestic rare earths supply chain,” Prineas says.
“Minas Gerais has several emerging rare earths producers – including our best-in-class Araxá Project – with the potential for the State to be the world’s leading rare earths producer.
“The establishment of rare earths processing in Minas Gerais can further propel the State to be a global force in rare earths production.”
Lima & Pergher, via its chemical and industrial division START, operates an industrial complex at Uberlândia that has the capacity to host the centre.
Meanwhile, the State of Minas Gerais is set to assist with licensing procedures, supplier relationships, and state tax incentives.
Finally, St George intends to supply technical expertise and feedstock from its Araxá Project.
The company and START are considering forming a new company to jointly own and operate the facility, targeting commencement of operations by 2030 subject to a final investment decision and licensing approvals.
The collaboration builds on St George’s latest mineral resource estimate for Araxá, which stands at 111.2 million tonnes (Mt) @ 3.57% total rare earth oxides (TREO) and 0.57% niobium pentoxide (Nb2O5). Measured and indicated resources amount to 75.2Mt @ 3.64% TREO and 0.58% Nb2O5.
St George says discussions with potential offtake counterparties in the US, Asia, and Europe remain ongoing.
St George Mining is a critical minerals explorer and developer focused on building a globally significant portfolio of metals essential for the clean energy transition.
Write to Paula Fabe at Mining.com.au
Images: St George Mining
