St George Mining Forges Strategic Alliance with European Processing Leader for Brazilian Rare Earths
St George Mining has announced a significant partnership with a globally-renowned European rare earths processing firm, marking a pivotal step in advancing its blockbuster Araxá project located in the Brazilian State of Minas Gerais. The company has entered into a memorandum of understanding (MOU) with Spanish engineering powerhouse Tecnicas Reunidas S.A., a leader in the rare earths sector, to conduct comprehensive testing on hard-rock rare earths material extracted from the high-grade Araxá resource.
Testing and Development of Rare Earths Processing Strategy
Under the terms of the MOU, Tecnicas Reunidas will utilize its proprietary RARETECH technology to process samples from the Araxá project, with the initial focus on producing a mixed rare earth carbonate (MREC) and rare earth oxide. This phase will also involve separating and splitting the rare earth elements within the ore to assess the suitability of the cutting-edge systems for the specific mineralisation. Depending on the outcomes of this initial testwork, the collaboration may expand to include designing an optimised processing flowsheet tailored to the Araxá deposits, potentially incorporating a unique processing method developed specifically for this resource.
Additionally, there is scope for a preliminary engineering study alongside capital expenditure (CAPEX) and operating expenditure (OPEX) costings for a proposed production plant at the project site. This could pave the way for a more efficient and cost-effective development pathway, leveraging Tecnicas Reunidas' extensive expertise in rare earths processing.
Executive Insights and Project Significance
St George Mining executive chairman John Prineas expressed enthusiasm about the partnership, stating, "The reputation of Tecnicas Reunidas in Europe is second to none regarding rare earths processing, and we are very pleased to be able to access their expertise to further develop our downstream processing strategy for our Araxá rare earths." Prineas highlighted that the Araxá project hosts the largest hard-rock rare earths deposit in South America, surpassing the operational Mountain Pass mine in California, which is the leading rare earths mine in the United States.
The company believes this tie-up with Tecnicas Reunidas could open doors in Europe for the supply of its rare earths, complementing existing strategic alliances with REalloys in the US and MagBras in Brazil. This move aligns with global efforts to diversify rare earths supply chains and reduce dependency on dominant producers.
European Backing and Technological Credentials
Tecnicas Reunidas has been recognised for its technical prowess in rare earths, having been selected to lead the PERMANET (PERmanent MAgnet NETwork for the European Transition) project. This initiative is backed by the European Commission under its flagship Horizon Europe program, which boasts the world's largest research funding budget of €95.5 billion and aims to deliver solutions across key areas, including climate action.
The PERMANET project seeks to establish Europe's first fully integrated value chain for permanent magnet production, encompassing the extraction, processing, and refining of rare earth elements. Managed and implemented by the European Commission, it involves 12 countries and 32 partners from both private and public sectors, underscoring the strategic importance of rare earths in the global transition to sustainable technologies.
Resource Potential and Additional Revenue Streams
The Araxá project boasts a world-class mineral resource of 70.91 million tonnes grading 4.06 per cent total rare earth oxides, with magnet rare earth oxides accounting for 0.77 per cent of the total. Beyond rare earths, the project includes a significant niobium resource, grading at 0.62 per cent of the total, which could provide an additional revenue stream. Niobium is a critical metal used to enhance high-strength low-alloy steels and is essential in superalloys for aerospace applications, such as rockets and jet engines, due to its high-temperature resistance.
Flexibility and Future Prospects
Importantly, the MOU does not obligate St George Mining to deal exclusively with Tecnicas Reunidas, allowing the company to retain flexibility in negotiating additional arrangements with other engineering firms, securing strategic investors, or entering into other transactions for the Araxá project. If the RARETECH technology proves successful, this partnership could accelerate Araxá from concept to a credible development story, potentially fast-tracking the project toward commercial production by integrating real-world, high-tech processing expertise.
This collaboration represents a critical step in harnessing advanced processing technologies to unlock the full potential of one of South America's most promising rare earths deposits, contributing to the global supply of essential materials for clean energy and high-tech industries.
