St George Mining Ltd has formed a strategic partnership with Shandong Xinhai Mining Technology & Equipment Inc (Xinhai) to fast-track the development of its Araxá Niobium-Rare Earths Project in Minas Gerais, Brazil. This partnership marks a significant milestone in advancing the high-grade project and reducing its development risks.
Under a binding Memorandum of Understanding (MoU), Xinhai has committed to:
John Prineas, Executive Chairman of St George Mining, expressed enthusiasm for the partnership:
💬 “We are delighted to be partnering with Xinhai, a truly global mining services provider with a proven track record of delivering high-quality processing plants on time and within budget.”
The Araxá Project is located in the Barreiro carbonatite complex, known for hosting world-class rare earth deposits. With grades reaching up to 8% niobium oxide and 33% total rare earth oxides (TREO), Araxá is well-positioned to become a key player in Brazil’s rare earths industry.
Xinhai’s investment and project expertise will accelerate permitting and construction timelines, enabling St George to finalize its acquisition by the end of this quarter and begin production planning shortly thereafter.
The partnership also grants Xinhai exclusive rights to market 80% of Araxá’s niobium production in China, further aligning both companies' interests in the project’s long-term success.
With extensive near-surface niobium mineralization and open-pit mining potential, Araxá is expected to benefit from the mining-friendly regulatory environment in Minas Gerais. The project’s low-cost mineralization and strategic partnerships are setting the stage for it to become a leading rare earth producer in Brazil.
As niobium remains a critical mineral globally—used in high-strength steel, bridges, vehicles, and lithium-ion batteries—St George’s partnership with Xinhai provides a clear pathway to construction and production, solidifying Araxá’s role in Brazil’s critical minerals future.
