St George Mining Extends US Rare Earths Alliance, Eyes Major Offtake Deal
St George Mining has secured additional time to advance its strategic partnership with Ohio-based REalloys, a key supplier of high-performance magnets to US defence and energy laboratories. The extension of the memorandum of understanding (MOU) from 120 days to a full year provides both companies with more runway to finalise a definitive offtake agreement for up to 40 per cent of future production from St George's flagship Araxá rare earths project in Brazil's Minas Gerais state.
Deepening Ties with a Strategic US Partner
The extended timeline allows for more comprehensive metallurgical test work on Araxá's rare earth oxalates and refinement of the processing flowsheet. This effort aims to deliver custom products that integrate seamlessly with REalloys' proprietary separation technology. St George's Araxá project stands out as the largest and highest-grade carbonatite-hosted rare earths deposit in South America, with a JORC resource of 40.6 million tonnes at 4.13 per cent total rare earth oxides (TREO).
Notably, magnet-critical neodymium-praseodymium (NdPr) constitutes over 20 per cent of the TREO, complemented by strategic credits such as samarium and heavy rare earths like dysprosium. Pilot test work conducted nearly 14 years ago, prior to St George's ownership, had already produced high-quality rare earths oxalate from deposit samples, which are now in REalloys' hands for ongoing metallurgical trials.
REalloys: A Key Player in US Supply Chain Security
REalloys operates a fully integrated North American facility, manufacturing neodymium-iron-boron and samarium-cobalt magnets for entities including the Defense Logistics Agency, the Department of Energy's AMES Lab, and major players in aerospace, defence, robotics, and electronics. The US government's push for greater security in rare earths supply chains positions REalloys at the forefront of delivering a mine-to-magnet solution focused on North American independence.
John Prineas, St George Mining's executive chairman, expressed enthusiasm about the collaboration, stating it offers an attractive pathway to access the rapidly developing and lucrative downstream sector of the US rare earths industry. REalloys has further strengthened its role by appointing Stephen S. duMont, President of GM Defense, as non-executive chairman, reinforcing its commitment to securing North American supply chains for critical metals.
Geopolitical Context and Market Dynamics
Recent developments underscore the geopolitical significance of rare earths. In January, proclamations by President Trump and the US Department of the Treasury have empowered agencies to negotiate import deals with price-floor safeguards, while Treasury-led G7 talks have focused on diversifying critical minerals supply chains. REalloys' recent partnerships, including technology transfer and magnet supply deals with Japan's JOGMEC and heavy rare earths refining with the Saskatchewan Research Council, highlight its efforts to lock in secure, non-China supply sources.
St George Mining is actively engaging with US government representatives to explore potential commercial support for the Araxá project. Media reports suggest that favourable Brazil-US trade discussions are advancing on critical metals, including rare earths, further enhancing the project's prospects.
Technical Pathway and Project Readiness
With an existing pilot plant and plans for a new one at St George's technology centre through a partnership with Brazil's CEFET university, the company has a clear technical pathway in place. The Araxá mining district offers favourable logistics, situated adjacent to CBMM's massive niobium operation, which reduces development risks and positions the project as increasingly de-risked and ready for advancement.
St George Mining is strategically leveraging Araxá's tier-one grades and deepening ties with US downstream links at a time when secure, non-China sources of supply are a top priority. The extended alliance with REalloys should be viewed not as a delay but as a strategic de-risking move towards a potential long-term offtake that could anchor St George firmly within Washington's critical minerals framework.
As metallurgical test work progresses, government discussions advance, and the world-class resource base is further validated, significant upside potential exists in St George's Brazil-to-USA pipeline. Upcoming results from test work, flowsheet developments, and formal agreements may soon demonstrate that the Araxá project has substantial viability in today's geopolitically charged market.
