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Development costs at St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF))’s Araxá Project in Brazil will fall after the State of Minas Gerais signed a preferential goods tax regime covering project build-out and processing infrastructure.
Under the approved regime, equipment and other materials acquired for Araxá’s development — including items for a pilot plant and any future full-scale industrial plant — will be exempt from the State goods tax, which St George said can be as high as 18% and is typically applied at the time of purchase.
The agreement was signed by Minas Gerais Governor Romeu Zema, alongside the state’s Economic Development Department (SEDE) and the Minas Gerais Integrated Development Institute (Invest Minas).
“Our ongoing drill program at Araxá is delivering tremendous high-grade results which we believe will underpin a very robust proposal for a world-class niobium and rare earths mining operation,” St George Mining executive chairman John Prineas said.
“We are delighted that the Government of Minas Gerais has recognised the value of our development strategy at Araxá with tax exemptions and other support. The tax concessions will feed directly into our economic study for a potential mining operation at Araxá.”
The tax support builds on an earlier Memorandum of Understanding between St George and the State of Minas Gerais, under which the parties agreed to collaborate on advancing Araxá and supporting the establishment of domestic supply chains for niobium, rare earths and related downstream products, including magnets.
The company said the State’s backing is expected to assist Araxá as it progresses through regulatory approvals, feasibility studies and, potentially, into production.
“On 1 December 2025, St George hosted a Critical Minerals Forum in Araxá that was attended by more than 200 delegates representing the community, government and other stakeholders,” Prineas said.
“Governor Romeu Zema, who is from Araxá, spoke at the Forum and made it clear that the State of Minas Gerais can play a leading role in establishing domestic supply chains in Brazil with several emerging critical minerals mines such as our Araxá Project as well as downstream initiatives like the Lab Fab facility of the MagBras Project.
“The combination of local and state government support, a world-class resource, the location in an established mining region and a first-class in-country team of engineers to drive project development provide St George with an outstanding opportunity to deliver on our vision for a globally significant rare earths and niobium mine at Araxá.”
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