The Brazilian state of Minas Gerais has formally approved a significant preferential goods tax regime for St George Mining's Araxá niobium and rare earths project, marking a substantial governmental endorsement for the critical minerals development. This strategic move directly removes state goods tax of up to eighteen per cent on all equipment and materials required for constructing both pilot-scale and full-scale processing facilities.
Governor Zema Signs Agreement at High-Level Ceremony
The agreement was signed at the highest level, with Minas Gerais Governor Romeu Zema personally putting pen to paper alongside representatives from the state's economic development department and Invest Minas. This ceremonial signing occurred during St George Mining's Open Day and Critical Minerals Forum at Araxá, where company leaders Thiago Amaral and Adriano Rios were present to witness the milestone.
For St George Mining, the timing of this tax concession could not be more advantageous. The company is currently deeply engaged in extensive drilling operations and comprehensive development studies at Araxá, while simultaneously laying the essential technical and regulatory groundwork for upcoming feasibility work. Management has confirmed that these welcome tax breaks will flow directly into their economic modelling, significantly sharpening the financial projections for what they believe could evolve into a globally significant niobium and rare earths mining operation.
Executive Chairman Expresses Delight at Government Support
St George Mining executive chairman John Prineas stated: "We are absolutely delighted that the Government of Minas Gerais has recognised the substantial value of our comprehensive development strategy at Araxá with these meaningful tax exemptions and other crucial support measures. The tax concessions will feed directly and positively into our detailed economic study for a potential large-scale mining operation at Araxá."
Under an earlier memorandum of understanding, the State of Minas Gerais has already committed to fast-tracking all necessary approvals for Araxá's development. This coordinated approach is specifically designed to highlight the region's growing credentials as a future hub for niobium and rare earths production and downstream processing, including magnet-related industries, at a time when global supply security for critical minerals has become an international priority.
Technological Centre and Pilot Plant Development
The company plans to establish its Technological Centre at Araxá as a key pillar of this strategic development, to be constructed in partnership with the Brazilian government. This centre will host a large-scale pilot plant capable of processing two hundred to three hundred kilograms of material per hour and producing multiple sample products, including:
- Ferroniobium
- Rare earth concentrates
- Mixed rare earth carbonates
- Rare earth oxides
Management views this pilot plant as a critical step in de-risking the Araxá project, serving as an essential bridge between laboratory testing and eventual full-scale commercial production. The processing data generated will initially allow flowsheets to be refined and downstream products to be convincingly demonstrated to potential offtake partners and investors.
Substantial Resource Base with Global Significance
Underpinning all these developments is a resource base that already commands attention on a global scale. Araxá hosts a substantial mineral inventory of 40.6 million tonnes grading 4.13 per cent total rare earth oxides, firmly establishing it as the largest carbonatite-hosted rare earths deposit in all of South America. Notably, the particularly valuable magnet elements, neodymium and praseodymium, account for almost twenty per cent of the total contained metals, substantially strengthening the project's long-term economic potential.
Adding another strategic advantage to the project's portfolio, Araxá also contains highly sought-after niobium within the mineral mix, with grades of 0.68 per cent offering a potential second revenue stream that enhances overall project economics. The project conveniently sits adjacent to CRMM's massive, long-established niobium operations and the established town of Araxá, providing St George with a useful leg up on existing infrastructure, access to a skilled local workforce, and deep regional mining expertise.
Project Transition from Exploration to Development
With tax relief now securely locked in, pilot plant plans advancing steadily, and feasibility work gathering significant pace, the Araxá project looks increasingly set to transition from an exploration success story into a serious development contender. In a global market increasingly focused on jurisdictional support and supply-chain resilience for critical minerals, St George Mining's Brazilian foothold now appears materially stronger and more strategically positioned than ever before.
