St George Mining has signed a protocol of intent with the state government of Minas Gerais and the Lima & Pergher Group to establish a dedicated rare earths processing center in Brazil. Announced during the EXPOSIBRAM mining conference in Belo Horizonte, the proposed Minas Gerais Rare Earths Processing Centre aims to build a domestic supply chain bridging raw extraction from projects like St George’s Araxá deposit to downstream magnet manufacturing.
Building a Domestic Supply Chain From Mine to Magnet
According to St George Mining, the collaborative framework sets the groundwork for a joint commercial venture to construct and operate the processing facility. The center will focus on the middle stage of the rare earths supply chain, utilizing chemical processing technologies to refine materials such as rare earth concentrates, mixed rare earth carbonates, and oxalates. These outputs will supply downstream manufacturers, including MagBras, which is building Brazil’s first rare-earth magnet plant. St George Executive Chairman John Prineas stated that the initiative gives the company an opportunity to establish mid-stream processing capacity locally. The state government of Minas Gerais, acting through the State Economic Development Department and Invest Minas, will support the project by assisting with permitting processes, fostering supplier relationships, and backing applications for state tax incentives.
Industrial Expertise and Regional Resources
The Lima & Pergher Group will provide chemical processing expertise through its chemical and industrial division, START. Operating a large industrial complex in Uberlândia, Minas Gerais, START possesses existing infrastructure with the capacity to house the new processing center. Fabio Pergher, chairman and president of the Lima & Pergher Group, noted that the company brings more than four decades of chemical processing experience to the partnership. Meanwhile, St George will supply technical planning expertise alongside raw material from its Araxá project. According to company disclosures published on August 11, 2026, the Araxá deposit is South America’s largest high-grade, carbonatite-hosted rare earths resource.
Broader Geopolitical Context in Brazilian Rare Earths
The agreement arrives amid a wider surge in foreign investment and domestic interest surrounding critical minerals in Brazil, which holds the world’s second-largest rare earths reserves behind China, estimated at roughly 21 million tonnes, according to International Energy Agency data cited by Deutsche Welle. Global demand for magnet-grade rare earth elements—such as neodymium, praseodymium, dysprosium, and terbium—has doubled since 2015 due to their essential role in electric vehicles, wind turbines, robotics, and artificial intelligence infrastructure. While historical Brazilian rare earth activities focused primarily on raw exports, recent transactions, including USA Rare Earths’ April acquisition of the Serra Verde mine in Goiás for $2.8 billion, highlight a growing industry push toward domestic processing and refining to challenge dominant overseas supply chains.
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