St George Mining (ASX: SGQ) has announced a strategic initiative for the potential establishment of the Minas Gerais Rare Earths Processing Centre (the Centre) in Minas Gerais, Brazil.
St George has entered into a collaboration agreement, referred to as a Protocol of Intent, with the Lima & Pergher Group – acting through its START chemical and industrial division (START) and the State of Minas Gerais – acting through the Minas Gerais State Economic Development Department (SEDE) and the Minas Gerais Integrated Development Institute (Invest Minas) (together referred to as the State).
The agreement sets a framework for the parties to assess the potential to establish the Centre as a new rare earths processing hub in Minas Gerais, as well as the foundation of a long-term commercial enterprise spanning the joint construction and operation of the Centre.
This landmark initiative was announced by the parties at EXPOSIBRAM, Brazil’s largest mining conference taking place this week in Belo Horizonte, Brazil. St George is an exhibitor at EXPOSIBRAM.
John Prineas, St George Mining’s executive chairman, commented:
“We are delighted to expand our relationship with the State of Minas Gerais with this exciting plan to strengthen Brazil’s domestic rare earths supply chain.
“Minas Gerais has several emerging rare earths producers – including our best-in-class Araxá Project – with the potential for the State to be the world’s leading rare earths producer. The establishment of rare earths processing in Minas Gerais can further propel the State to be a global force in rare earths production.
“We are honoured to have been selected by the State to partner on the potential establishment of a rare earths processing centre which could have the capability to separate rare earths, refine rare earths and produce materials for rare earths magnet making. This is an opportunity to establish midstream rare earths processing in Minas Gerais that will build out Brazil’s mine-to-magnet supply chain.
“The support from the State will significantly de-risk this initiative and further underscores the strong government and community support for development of the Araxá Project.
“We are also delighted to be collaborating with START, which is a company that is a leader in its field and can contribute substantially to the successful execution of this strategy. The processing expertise of START and the favourable logistics of its industrial complex will be invaluable as we progress the design of the processing centre and consider an investment decision.
“The development of our Araxá Project as well as the processing centre has the potential to deliver a very significant economic impact for Minas Gerais, further entrenching St George as an important contributor to Brazil’s critical minerals supply chain.”
Fabio Pergher, chairman and president of Lima & Pergher Group, commented:
“Our experience in chemical processing spans more than four decades over which we have established a major chemical and industrial operation in Uberlândia, always with a view to sustainable development.
“We look forward to working with St George on this strategically important initiative that could create a stable and resilient permanent rare earths magnet value chain in Brazil.
“Through this partnership, we will be able to further contribute to establishing Minas Gerais as a world leader in rare earths while also creating employment and economic stimulus in the State.”
