Australia’s SGM signs deal to supply rare earth metals

Spanish Market: Metals
12/12/24

Australian miner St George Mining (SGM) has signed a deal to supply rare earth metals to a Brazilian rare earth magnet facility over a five-year period, it said today.

SGM signed the initial agreement with Brazilian technology agency Senai and the Federation of the Industries of the state of Minas Gerais (Fiemg), with no further details such as volumes disclosed. SGM's supply will support pilot magnet production at the Lab Fab facility in Brazil, which is managed by Fiemg. The rare earth metals will be produced at SGM's Araxá mine in Brazil once the mine launches, with no timeline disclosed.

SGM also agreed to work with Fiemg and Senai to promote and study Brazilian rare earth magnet production under separate agreements signed on 12 December. The company will also allow Senai to assess Araxá's facilities for metallurgical testing.

The Fiemg's pilot magnet facility is scheduled to begin operations in 2025, with an initial capacity to produce 100 t/yr of rare earth magnets. Fiemg aims to boost capacity to 200 t/yr within three years and establish Brazil as the first large-scale rare earth magnet maker in the southern hemisphere.

SGM also signed an agreement to buy the Araxá mine on 6 August, which has 6.3mn t of heavy rare earth mineral deposits and holds niobium and heavy rare earth oxides, from Houston-headquartered fertilizer firm Ifatos. SGM expects the deal to close within the coming months.

Fellow Australian miner Meteoric Resources also signed an agreement with Fiemg to supply mixed rare earth carbonates to Lab Fab in June in a deal similar to SGM's recent agreement.

Lab Fab's technology and innovation manager Jose Pereira told Argus in June that Fiemg will initially focus on producing neodymium iron boron magnets at the site, while developing other rare earth magnets.

Fiemg's latest supply agreement comes just weeks after China banned firms from exporting gallium to the US, cutting off American manufacturers from the supply.

By Avinash Govind

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EU could tighten steel safeguard in impending review

13/12/24

EU could tighten steel safeguard in impending review

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Rio Tinto to invest $2.5bn in Argentina lithium mine

12/12/24

Rio Tinto to invest $2.5bn in Argentina lithium mine

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Nornickel sees global Ni surplus at 150,000t in 2024-25

12/12/24

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Syrah declares Mozambique graphite plant force majeure

12/12/24

Syrah declares Mozambique graphite plant force majeure

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