St George Mining Ltd (ASX:SGQ) has signed two memorandums of understanding (MoUs) with SENAI, owner of Brazil’s first permanent rare earth magnet production facility.
Under the agreements, the two companies will partner to advance research and development of permanent magnets and the sustainable processing and manufacturing of niobium and rare earth products.
SENAI’s Lab Fab facility, operated by the Federation of the Industries of Minas Gerais (FIEMG), is scheduled to begin production of permanent rare earth magnets this year, targeting 100 tonnes per year in its initial capacity and double that within the next three years.
As Brazil’s largest scientific and technological agency, SENAI collaborates with businesses to develop industry-leading technologies that can drive growth and efficiencies.
SGQ’s proposed Araxá Niobium and Rare Earth Elements (REE) Project in Minas Gerais has also been selected as a potential supplier of rare earth material in Brazil, which is emerging as a rare earth and lithium powerhouse on the global stage.
Building a critical mineral supply chain
“We continue to build a strong platform to drive the Araxá Project forward and deliver the successful development of a mining operation,” St George Mining executive chair John Prineas said.
“The partnership agreements signed with SENAI will support the development of downstream opportunities for St George – further integrating our proposed Araxá operation into Brazil’s supply chains for critical metals.
“SENAI is Brazil’s leading scientific and research organisation and has an outstanding track record of collaborating with the private sector to advance business through innovative technology.
“We are honoured to have been selected by SENAI, as well as FIEMG, as a partner for Brazil’s first and only REE permanent magnet-making facility.
“We are also delighted that SENAI has recognised the significance of our proposed Araxá operation and agreed to work with us to optimise the efficiency and sustainability of potential mining and processing activities.
“These are important developments for the advancement of the Araxá Project and we look forward to reporting more exciting project news as we continue to build our business in Brazil in anticipation of the project acquisition completion."
The MoU has an initial term of five years, establishing a framework for cooperation between St George, SENAI and FIEMG to produce rare earth magnets at Lab Fab in Lagoa Santa, State of Minas Gerais.
Areas of collaboration include:
- Supply of raw materials by St George for pilot production of rare earth magnets.
- Promoting the production of rare earths magnets made in Brazil to other parties in the clean energy sector.
- Research studies, test-work and other and specialised technological services to support rare earths magnet production.
SGQ says SENAI will assess the existing pilot plant at Araxá Project for potential re-assembly and commissioning for use in the completion of metallurgical test-work and production of sample products.