St George Mining Back in the Spotlight as US Looks to Brazil for Rare-Earth Security

St George Mining Jumps 4% as US–Brazil Talks Boost Hopes for Rare-Earth Partnership

Potentially exciting news for St George Mining (ASX: SGQ) today, with shares climbing 4 percent after reports that a senior U.S. official met with Brazilian mining executives to discuss rare-earth supply partnerships. The meeting forms part of a broader US initiative to secure alternative sources of critical minerals amid ongoing tensions with China, which still dominates global supply.

Importantly, St George Mining was among the Brazilian miners reportedly involved in these discussions, opening the door to potential US partnerships or investment support. For SGQ, this could translate into faster project development, improved funding access, and strategic positioning within a geopolitically vital supply chain. While it’s still early days, the news adds credibility to SGQ’s ambitions in Brazil and reinforces the growing global focus on diversifying rare-earth production away from China.

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Araxá Project Positioned as Key Beneficiary of US –Brazil Rare Earth Collaboration

Brazil holds the second-largest rare earth deposits globally, behind China, yet much of this potential remains underdeveloped or at the exploration stage. This gives the country a significant long-term advantage as global supply chains seek diversification away from China.

St George Mining stands out as one of the better-positioned players in this emerging landscape. Its Araxá Project, acquired in February 2025, is a de-risked and high-quality development located in Minas Gerais, right next to CBMM’s world-leading niobium operations a prime location from both a geological and infrastructure standpoint.

Historical drilling at Araxá has confirmed extensive high-grade niobium and rare earth mineralisation, starting from surface. Results include over 500 intercepts of high-grade niobium (above 1%, with grades reaching up to 8%) and rare earths with grades as high as 33% TREO.

In simple terms, Araxá offers world-class mineral potential in one of the most strategically important mining regions of Brazil. If the US – Brazil rare earth collaboration progresses, projects like Araxá could attract foreign investment, faster permitting, and strategic offtake agreements, all of which would significantly enhance SGQ’s growth trajectory and asset value.

How a US Deal Could Fast-Track St George Mining’s Brazilian Rare-Earth Project

Given the scale of St George Mining’s Araxá Project, partnership talks with the US could open the door to transformational outcomes. If SGQ were to secure US capital funding or strategic investment, it could significantly accelerate project timelines, helping to fast-track the transition from exploration to production. Importantly, this would reduce the company’s need for additional equity raises, easing dilution pressure and improving financial flexibility.

More strategically, such partnerships could mirror what’s already happening in the US with MP Materials’ Mountain Pass Mine in California, which recently signed a deal with the US Department of Defense guaranteeing price-floor protection for NdPr (neodymium-praseodymium) output. That agreement ensures stable revenue despite commodity price volatility.

If SGQ were to benefit from a similar arrangement over the long term whether through offtake contracts, price-support mechanisms, or direct funding,it would represent a major catalyst for long-term value creation. Beyond accelerating development, it would strengthen SGQ’s profitability outlook, secure its position in the critical-minerals supply chain, and align it with the global shift toward resource independence from China.

The Investors’ Takeaway for SGQ

While the news is clearly positive and places St George Mining in front of the right decision-makers, it’s worth noting that no formal partnership or funding agreement has been announced yet, so any upside at this stage remains speculative. The global rare-earth market continues to be heavily influenced by China, meaning both Brazil and SGQ will need to move quickly and execute efficiently to capitalise on this early momentum.