ASX-listed explorer St George Mining has signed a memorandum of understanding (MoU) with SKI HongKong Limited (SKI), a leading steel materials trader, to support the development of the Araxá niobium-rare earth elements project.
Under the MoU’s framework, St George and SKI will consult with each other on the marketing, offtake and financing opportunities that arise at Araxá, with the aim of progressing the project through feasibility studies for a mine development.
Within nine months of the MoU’s signage, St George and SKI will consider and negotiate a potential binding partnership agreement. During this period, both parties will consult on key Araxá development parameters, including product mix and global marketing arrangements.
“We are delighted to have executed the MoU with SKI, which we believe can be the start of a productive and successful, long-term relationship,” St George executive chairman John Prineas said.
“SKI’s decision to partner with St George highlights the longer-term strategic significance of the Araxá project as a potential globally significant supplier of niobium products.
“SKI is an impressive strategic partner for St George, based on its substantial trading track record in steel materials and its particular industry leading expertise in niobium products.”
The Araxá project is located 5km south of Araxá in Minas Gerais State, Brazil. The project is immediately adjacent to Companhia Brasileira de Metalurgia e Mineracao’s niobium mine that produces approximately 80 per cent of the world’s niobium, demonstrating Araxá’s position within a first-class mining jurisdiction.
St George entered into a binding conditional agreement with Itafos Araxá Mineracao E Fertilizantes S.A to acquire the Araxá project in August. St George is currently finalising the acquisition, and the MoU is conditional on said acquisition being completed.
“SKI’s objective is to secure a long-term reliable supply of high-quality niobium products against the market background of fast-growing global demand for niobium as well as geo-political issues that may restrict access to this highly rated critical metal,” Prineas said.
“The MoU provides a framework for collaboration on technical and financial matters to advance development of the project. The support of SKI is a major milestone in de-risking the project by further enabling opportunities to expedite development.
“St George’s ability to attract global partners like SKI speaks volumes to the potential of the Araxá project.”
St George aims to produce sample niobium products in the first half of 2025 by using the Araxá pilot plant, in line with specifications to be agreed upon with SKI.
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