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Australian mining company enters Minas Gerais to shake up the billion-dollar Moreira Salles empire and break the niobium monopoly

Written by Carla Teles de Lima
Published 13/01/2025 às 19:32
Australian mining company enters Minas Gerais to shake up the billion-dollar Moreira Salles empire and break the NIOBIUM monopoly
The entry of Australian mining company St. George into Araxá marks the first major challenge to CBMM’s absolute dominance in the global niobium market. This move could be the beginning of the end of a monopoly that has lasted for more than six decades.

St. George Mining is investing R$76 million to explore niobium in Araxá and challenge CBMM, which controls 80% of the global market for the metal essential for the energy transition. The dispute promises to boost the local economy and reignite competition in a sector controlled for more than 60 years by the Moreira Salles family.

Araxá, the charming Minas Gerais city famous for its hot springs and artisanal cheeses, is about to become the scene of an epic clash. On one side, St. George Mining, a bold Australian mining company. On the other, the powerful Moreira Salles, owners of CBMM, which controls 80% of the world niobium market. Do the Australians have what it takes to take on this giant? Let's find out.

The arrival of the St. George mining company in Araxá

Arriving in the city where CBMM has reigned supreme for over 60 years is not for everyone. St. George not only set up shop in Araxá, but also announced a ambitious project: to mine 5.000 tonnes of niobium per year from 2027. Compared to CBMM’s 150 tonnes per year, it seems like a drop in the ocean. But the message is clear: Australians want a piece of this valuable market.

Niobium is not just another metal. It is essential for the energy transition, being used in the manufacture of batteries, turbines and high-resistance materials. It is no wonder that the United States government considers it the second most critical metal for the future. With 90% of global reserves located in Brazil, the country is in the center of global attention – and Araxá, in the eye of the storm.

CBMM's strength in the global market

These are niobium stones in their natural state, with a metallic shine that attracts attention. This metal is essential for creating stronger materials and advancing the transition to clean energy.
These are niobium stones in their natural state, with a metallic shine that attracts attention. This metal is essential for creating stronger materials and advancing the transition to clean energy.

CBMM didn’t reach the top by chance. Since the 1950s, the company has led the market, developing technologies and ensuring a solid foundation for niobium. Its billion-dollar profits not only fill the pockets of shareholders, but also contribute about 1% of the revenue of the Minas Gerais government.

The arrival of St. George brings a breath of fresh air, but also a challenge for the local workforce. Competing for workers with CBMM could heat up the job market, but also generate tension in a city that has always lived under the rule of a single large employer.

The mining company's strategy to enter the market

Founded 14 years ago, the St. George mining company began researching metals such as lithium and nickel in Australia, but never managed to extract either of them. Now, with its eyes set on niobium, the Australian mining company has found a golden opportunity in Araxá, or rather, a strategic metal.

Taking on an established monopoly is like trying to outmaneuver a seasoned goalie in a championship game. St. George will need capital, technology and a well-thought-out strategy to compete. The company must convince investors and locals that it can deliver results.

The future of the niobium market

With electrification advancing and the search for alternatives to fossil fuels, metals like niobium are most valued than ever before. This puts Araxá and Brazil on the strategic map of the global energy transition.

Brazil is already a leader in niobium, but competition could bring benefits such as technological innovation and greater international visibility. If St. George can secure a share of the market, it could attract more investment and solidify the country’s position as a natural resources powerhouse.

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arantesmarcio855@gmail.com
arantesmarcio855@gmail.com
14/01/2025 20:16

These governments handing over our wealth… How sad!!!

Flower
Flower
15/01/2025 08:16

Sad reality… but one of the riches of our Minas Gerais is leaving the country…

Wilton Ferreira da Costa
Wilton Ferreira da Costa
In reply to  arantesmarcio855@gmail.com
15/01/2025 08:19

We cannot hand everything over to the Chinese; there needs to be diversification of foreign investment in the country.

Carla Teles de Lima

I talk about technology, innovation and the oil and gas sector, bringing up-to-date and relevant content about the Brazilian market. Every day, I share information about job opportunities and the main news in the sector. Do you have a suggestion for a topic? Just send it to my email: carlatdl016@gmail.com.

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