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Mining Company Invests BRL 2 Billion in Minas Gerais with More Than 400 Direct Jobs; New Project Promises Positive Economic and Social Impact for the State!
The Government of Minas Gerais, through the State Secretary of Economic Development (Sede-MG) and the agency Invest Minas, has formalized a historic agreement with the Australian mining company St George, resulting in an investment of BRL 2 billion in the city of Araxá, located in the Triângulo Mineiro.
This investment is part of the Araxá Project, aimed at exploring Niobium and Rare Earth Elements (REEs), essential minerals for high-tech industry and energy transition. The partnership was sealed this Wednesday (10/30), in Sydney, Australia, at St George’s headquarters.
In addition to the financial application, the project will also have a direct impact on the local economy, with the creation of 400 direct jobs. The expectation is that the mine will begin operations in 2027, reaching an annual production capacity of up to 20,000 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 state government initiatives to attract investments and strengthen the region’s economy. The creation of 400 direct jobs in the Araxá Project will not only stimulate the job market but also various local production chains.
The CEO of Invest Minas, João Paulo Braga, emphasizes that the Araxá Project is a milestone in Minas Gerais’ position as a leader in the production of essential metals for the industry of the future. Additionally, Braga points out that attracting investments like this contributes directly 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 licensing processes and local partnerships. The agency will also help promote an environment that facilitates integration between the mining company and regional suppliers.
“St George reinforces the growing interest of Australian companies to invest in Brazil, specifically in Minas Gerais, not only due to the reserves of critical minerals but also because of the business-friendly environment provided by the State Government’s actions and existing infrastructure,” emphasizes Ronaldo Barquette, Director of Investment Attraction at Invest Minas.
Commitment to Local Infrastructure and Use of Regional Labor
Under the agreement, St George has committed to prioritizing local suppliers and workers whenever possible. The mining company also pledges to assess the infrastructure needs in the region, aiming to support the development of the raw materials and strategic materials sectors in Minas Gerais. This collaborative arrangement seeks not only to extract natural wealth but also to create a solid foundation for the expansion of the mineral sector in Minas Gerais.
The Executive President of St George, John Prineas, commented on the company’s commitment to the state, stating that the support from the state government will facilitate a more efficient approval process, reducing risks and accelerating the execution timeline.
A Promising Future for Minas Gerais in the Critical Metals Industry
With operations planned to begin in 2027, the Araxá Project places Minas Gerais at the forefront of critical metal exploration, strengthening the state’s role in producing essential materials for technological innovation and the transition to a more sustainable economy.
However, there are concerns regarding the sustainability of the project, which will need to be monitored by environmental agencies to ensure that the socio-environmental impact is mitigated and that economic growth is pursued responsibly.
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