With a view to expediting regulatory approvals for its high-grade Araxá Niobium-Rare Earth Elements (REE) Project, St George Mining Ltd (ASX:SGQ) has inked a Memorandum of Understanding (MoU) with Brazil’s Minas Gerais State Economic Development Department (SEDE) and the Minas Gerais Integrated Development Institute (Invest Minas).
The state’s support reflects the Araxá Project’s significance at all levels of government with the potential to contribute meaningfully to Brazil’s role in the global supply of critical metals.
Sustainable economic contributions
Invest Minas picked out the Araxá Project as a high-priority initiative, choosing it as part of a selective program to establish strategic partnerships with private projects that promise sustainable economic contributions.
The non-binding agreement, which was formalised in Sydney, will allow St George to fast-track development as it moves toward completing its 100% acquisition of the Araxá Project.
It will also streamline the regulatory process, providing St George with priority support for exploration and mining licences and significantly de-risking project timelines.
From the local perspective, the MoU marks a concerted effort to bolster critical metals exploration and development within the Minas Gerais region, with an eye on establishing robust, locally anchored supply chains.
By fostering the industry for vital minerals such as niobium and rare earth elements (REE), and downstream products like magnets, the deal dovetails with regional and global demand for materials crucial to renewable energy technologies.
Jobs and growth in region
Beyond accelerated approvals, St George intends to leverage its expertise and newly established team in Brazil to support the local government’s growth agenda.
The company’s plans include a substantial investment to drive the project forward, employing local suppliers and workforce wherever feasible, thereby stimulating economic activity and job creation in Minas Gerais.
With recent strategic appointments, including an ex-mines minister as an advisor, St George has been building its footprint in Brazil to advance the Araxá project as a critical contributor to the growing global demand for clean energy minerals.
St George Mining executive chair John Prineas said: “We are delighted to strengthen our relationship with the State of Minas Gerais with an agreement to progress the Araxá Project in a way that creates sustainable economic growth for the state.
“The support from the state for a streamlined approvals pathway will significantly de-risk the project and should accelerate the project’s execution timeline.
“The collaborative arrangement will also see St George contribute our expertise and network – both through the team in Perth and our newly established first-rate team in Brazil – to develop strong supply chains in Brazil for our proposed suite of critical metals products.
“Invest Minas’ recognition of the potential positive economic impact of the Araxá project on the state further highlights the tremendous value and importance of the asset St George is acquiring.”