In a strategic push to deepen connections with the United States Government, St George Mining has appointed a leading Washington DC-based government relations firm. This move aims to secure potential incentives and funding support for the company's Araxá critical minerals project located in Brazil.
Strengthening US Partnerships for Critical Minerals
The company has engaged Ervin Graves Strategy Group to liaise with key US Government agencies. This decision comes as the Trump Administration intensifies efforts to secure critical minerals, positioning St George to provide rare earths and niobium to one of the world's most powerful nations.
St George's Araxá project, situated in the mining-rich state of Minas Gerais in Brazil, boasts the second-highest grade of rare earths in the western world. Its geographic location makes it an ideal supplier for US Government departments and large public companies seeking critical metals.
US Government's Growing Investment in Critical Minerals
Recent US Government initiatives highlight a strong appetite for funding critical minerals projects. Notably, a $1.6 billion funding package was awarded to USA Rare Earth, which included a 10 per cent stake in the Texas-based firm.
USA Rare Earth controls the Round Top deposit in West Texas and is developing a magnet manufacturing facility in Oklahoma, capable of producing hundreds of millions of magnets annually.
Additionally, in November, the US Government-backed International Development Finance Corporation provided a $465 million loan to Brazilian company Serra Verde. This funding supports the development of the Pela Ema rare earths mine in Brazil, underscoring the US focus on securing mineral supplies from friendly jurisdictions.
Araxá Project's Strategic Advantages
The Araxá project holds a world-class mineral resource of 40.6 million tonnes, grading 4.13 per cent total rare earth oxides. It is the largest carbonatite-hosted rare earths deposit in South America.
Notably, the resource includes valuable magnet rare earth oxides, comprising almost 20 per cent of the total. This positions the project as an economically robust offering in the critical minerals market.
An added advantage is the presence of niobium, grading 0.68 per cent, which provides another potential revenue stream. Niobium is a critical metal used to strengthen high-strength low-alloy steels for infrastructure like bridges and pipelines.
Its high-temperature resistance makes it ideal for superalloys in rockets and jet engines, while its non-toxic properties drive demand for medical implants and pacemakers.
Market Context and Future Prospects
The demand for niobium has significantly boosted the value of projects such as WA1 Resources' Luni project in Australia. Awarded Major Project Status by the Australian Government, it now holds a market capitalisation of $1.36 billion, supported by a resource of 220 million tonnes grading one per cent niobium.
St George Mining executive chairman John Prineas emphasised the alignment of the Araxá project with US policy. "Our 100 per cent owned Araxá Project aligns closely with US policy to support development of critical minerals in the Western world. We are excited to have engaged Ervin Graves to progress the potential for St George to attract government funding support and downstream industry partnerships in the US," he stated.
With the US Government actively investing in high-quality, high-grade projects in strategically located areas, St George Mining is well-positioned to seek funding and partnerships. The company's proactive approach reflects a keen understanding of the current geopolitical and economic landscape, as it vies for a share of the growing critical minerals market.
