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Mining Company Invests R$2 Billion in Minas Gerais with Over 400 Direct Jobs; New Project Promises Positive Economic and Social Impact for the State!
The Government of Minas Gerais, through the State Secretariat for Economic Development (Headquarters-MG) and the Invest Minas agency, formalized a historic agreement with the Australian mining company St george, which will result in an investment of R$2 billion in the city of Araxá, located in the Triângulo Mineiro region.
This investment is part of the Araxá Project, aimed at the exploration of Niobium and Rare Earth Elements (REEs), essential minerals for the high-tech industry and energy transition. The partnership was sealed this Wednesday (30/10), in Sydney, Australia, at the St George headquarters.
In addition to the financial application, the project will also have a direct impact on economy local, with the creation of 400 direct jobs. The mine is expected to begin operating in 2027, reaching an annual production capacity of up to 20 thousand tons of Niobium and REEs.
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Economic and Social Impact for Minas Gerais
For the Secretary of Economic Development of Minas Gerais, Fernando Passalio, the agreement with St George represents the success of the state government's initiatives to attract investment and strengthen the region's economy. The creation of 400 direct jobs in the Araxá Project will boost not only the labor market, but also several local production chains.
Invest Minas CEO João Paulo Braga emphasizes that the Araxá Project is a milestone in Minas Gerais’ position as a leader in the production of metals essential for the industry of the future. Furthermore, Braga emphasizes that attracting investments like this directly contributes to the global energy transition and to strengthening local production chains.
“By facilitating an efficient regulatory pathway and encouraging job creation, we reinforce our commitment to making Minas a preferred destination for global impact investments,” says João Paulo Braga.
Partnership and Support for Regional Development
Invest Minas played a central role in attracting St George to the state and will continue to provide support in the licensing processes and local partnerships. The agency will also help to foster an environment that facilitates integration between the mining company and regional suppliers.
"St George reinforces the growing interest of Australian companies in investing in Brazil, specifically in Minas Gerais, due not only to the reserves of critical minerals, but also to the business environment favorable to investors, provided by the actions of the State Government and the existing infrastructure.”, emphasizes Ronaldo Barquette, Director of Investment Attraction at Invest Minas.
Commitment to Local Infrastructure and Use of Regional Labor
As part of the agreement, St George has committed to prioritizing local suppliers and workers whenever possible. The mining company also undertakes to assess infrastructure needs in the region, with the aim of supporting the development of the raw materials and strategic materials sector in Minas Gerais. This collaborative arrangement seeks not only to extract natural resources, but also to create a solid foundation for the expansion of the mining sector in Minas Gerais.
St George Chief Executive John Prineas commented on the company’s commitment to the state, saying the state government’s support will facilitate a more streamlined approvals process, reducing risk and accelerating the execution timeline.
A Promising Future for Minas Gerais in the Critical Metals Industry
With operations scheduled to begin in 2027, the Araxá Project places Minas Gerais at the forefront of the exploration of critical metals, reinforcing the state's role in the production of materials essential for technological innovation and the transition to a more sustainable economy.
However, there is concern regarding the sustainability of the project, which must be monitored by environmental agencies, ensuring that the socio-environmental impact is mitigated and that economic growth is accompanied by responsibility.
