Strategic Collaboration to Strengthen Global Rare Earth Supply Chain

Australian mining company St George Mining (SGM) has secured a five-year agreement to supply rare earth metals to Brazil’s pioneering rare earth magnet production facility. This deal marks a significant step in strengthening the global supply chain for critical minerals, particularly rare earth elements, which are vital for clean energy technologies and national security.

The collaboration involves SGM, the Brazilian technology agency Senai, and the Federation of the Industries of the state of Minas Gerais (Fiemg). The agreement will support the development of Brazil’s rare earth capabilities, with the metals sourced from SGM’s Araxá mine in Brazil. Although specific supply volumes remain undisclosed, the deal aligns with SGM’s strategy to expand its global footprint in the rare earth sector. Production is expected to begin following the launch of the Araxá mine, though timelines have not been finalized.

Expanding Rare Earth Magnet Production Capacity in Brazil

In addition to the supply agreement, SGM has committed to further partnerships with Fiemg and Senai. These agreements, signed on December 12, will focus on research and development to advance Brazilian rare earth magnet production. The Fiemg-managed Lab Fab facility, expected to begin operations in 2025, aims to produce 100 tons of rare earth magnets annually, with plans to double this output within three years.

This initiative supports Brazil’s ambition to become a significant global player in the rare earth industry, with the potential to become the first large-scale rare earth magnet producer in the Southern Hemisphere.

The deal follows SGM’s acquisition of the Araxá mine, known for its rich deposits of heavy rare earth minerals. The acquisition, set to close in the coming months, enhances SGM’s asset base and positions the company as a key supplier of rare earths for both domestic and international markets. This move reflects the growing trend among mining companies to diversify global rare earth supply chains in response to recent trade tensions, particularly China’s restrictions on gallium exports to the US.