St George Mining Ltd secures strategic land to advance Araxá niobium-rare earths project in Brazil

St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF) has secured a key industrial landholding near its Araxá project in Brazil, strengthening the groundwork for a potential niobium and rare earths operation.

The company has entered into a binding agreement to acquire 166 hectares of flat, cleared land less than 2 kilometres from its mining tenure at Araxá in Minas Gerais. The site is zoned for mining and industrial use, aligning with St George’s proposed development plans.

Google satellite image of the Barreiro Carbonatite showing the operations of CBMM and Mosaic as well as the mining tenure of St George (red area) and the newly acquired project land that is suitable for a future industrial area.

Land positioned to unlock full resource potential

St George said the location of processing infrastructure outside the mining tenure is critical, with ongoing drilling confirming extensive mineralisation across a broad footprint. Positioning facilities away from the deposit ensures no part of the orebody is sterilised by surface infrastructure.

The approach mirrors the layout adopted at the neighbouring Barreiro carbonatite complex, home to CBMM’s world-leading niobium mine and The Mosaic Company’s phosphate operations, both of which have processing plants located outside the mineralised core.

Executive chairman John Prineas described the acquisition as an important de-risking step as the company advances both exploration and development workstreams in parallel.

“We know we have a world-class Mineral Resource at Araxá that is only going to get bigger and better, so our attention is firmly focused on also enabling the fast-tracked development of a significant niobium-rare earths mining operation,” Prineas said.

He pointed to expansion drilling success and a likely resource upgrade this quarter, alongside metallurgical test work, technical studies feeding into economic assessments, and engagement with the Minas Gerais state government on favourable tax regimes.

Resource upgrade and scoping study under way

An updated Mineral Resource Estimate is scheduled for release this quarter and will underpin a scoping study for a potential niobium mining operation.

The current resource, announced in April 2025, totals 41.2 million tonnes at 0.68% Nb₂O₅ for niobium and 40.6 million tonnes at 4.13% total rare earth oxides, making Araxá one of the most significant hard-rock carbonatite rare earth and niobium deposits in South America.

St George acquired 100% of the project in February 2025 and has highlighted its proximity to established infrastructure, a skilled workforce and more than four decades of commercial niobium production in the region.

With only three primary niobium producers globally and demand forecast to grow at around 6% per annum — with potential acceleration from battery applications — the company sees scope to enter a tightly concentrated and strategically important market. The United States ranks niobium among its most critical minerals, underscoring demand for reliable Western Hemisphere supply.

Environmental offset land secured

In addition to the industrial site, St George has acquired a separate 163-hectare parcel located around 19.5 kilometres from the proposed plant site. The land comprises mature vegetation, including Atlantic forest, and will be converted into a conservation green zone.

The conservation area is intended to offset environmental impacts, reduce greenhouse gas emissions associated with the proposed mining operation and support operational licensing requirements.

Google satellite image showing the conservation area on the west (multi-green area), future industrial area (yellow area) as well as the mining tenure of St George’s Araxá Project (red area).

Transaction terms

The 166-hectare industrial land was acquired for 14 million Brazilian reais (about A$3.8 million), payable in two equal instalments, with the first paid on signing on February 13, 2026, and the second due by September 30, 2026.

The conservation land was purchased for 6 million Brazilian reais (about A$1.6 million), fully paid, with both transactions conducted on standard commercial terms with unrelated local farming families.

St George said the new land has capacity to host processing facilities for both niobium and rare earths, allowing flexibility to stage development in line with market demand as it works towards positioning Araxá as a near-term production opportunity.