St George Mining Ltd (ASX:SGQ, FRA:S0G, OTC:SGQMF) is looking to reshape how niobium is produced at its flagship Araxá project in Brazil, signing a strategic alliance with US-based Boston Metal to trial a potentially game-changing processing technology.
The memorandum of understanding (MoU) will see the companies collaborate on testing Boston Metal's molten oxide electrolysis (MOE) technology on niobium from Araxá, with the aim of improving production efficiency, lowering costs and reducing environmental impact.
The move marks St George's latest step in building out a downstream strategy for Araxá, following Tuesday's agreement with European engineering group Tecnicas Reunidas to test rare earths processing technology for the project. Together with ongoing work on resource growth and government-backed development initiatives in Brazil, the partnerships highlight a coordinated push to advance both rare earths and niobium processing pathways.
New pathway for niobium production
Under the agreement, Boston Metal will assess the application of its MOE technology for ferroniobium production using material from Araxá. The process, developed at the Massachusetts Institute of Technology and commercialised by Boston Metal, uses electricity to extract metals from oxides in a highly selective and efficient way.
Unlike conventional niobium processing — which typically involves flotation, hydrometallurgical refining and aluminothermic conversion — MOE has the potential to simplify flowsheets by removing multiple steps. This could translate into lower operating costs, reduced waste and significantly lower carbon emissions.
Importantly, the process may also deliver additional value through the by-products generated. Slag from niobium processing using MOE is expected to contain elevated concentrations of rare earths, offering potential synergies with Araxá's rare earths component.
"The MOE technology offers the opportunity for St George to develop a new generation of niobium processing at Araxá," executive chairman John Prineas said. "This could deliver cleaner and lower-cost production for us and our stakeholders."
Boston Metal CEO Tadeu Carneiro added that the technology could support a more sustainable pathway to production, noting its flexibility across different feedstocks and applications.
Global backing and commercial momentum
Boston Metal brings significant technical credibility and financial backing to the partnership. The company has attracted more than US$500 million in funding from a high-profile investor base that includes BHP, BMW, Microsoft, ArcelorMittal, Vale and Aramco.
Its MOE technology has also received global recognition, including an S&P Global Platts Metals Award and inclusion in TIME Magazine's lists of influential companies and breakthrough inventions.
The company is currently commissioning its first commercial plant in Brazil, focused on producing high-value critical metals — positioning it well to support development at Araxá.
Parallel development strategy
While the MOE trials progress, St George is continuing metallurgical test work using conventional processing methods already proven in the Araxá region over decades of production.
This dual-track approach allows the company to advance near-term development studies while exploring potentially transformative processing options that could enhance long-term project economics.
The MoU itself is non-binding, with both parties funding their own workstreams. Any future commercial agreement, including licensing of the MOE technology, will be subject to further negotiation.
Araxá gains momentum
The agreement builds on a series of recent milestones for Araxá, including a major resource upgrade to 70.9 million tonnes and ongoing drilling aimed at further expanding the inventory .
Located in Brazil's Minas Gerais state — alongside the world's largest niobium producer — Araxá benefits from established infrastructure, a skilled workforce and strong government support. St George has also secured participation in Brazil's MagBras initiative, which aims to develop a fully integrated rare earths supply chain.
Recent activity has seen the company strengthen its downstream ambitions through international partnerships and industry engagement, including collaborations on rare earths processing and participation in Brazil–US critical minerals forums .
With the addition of Boston Metal's technology into the mix, St George is now testing whether Araxá can not only deliver scale, but also set a new benchmark for how niobium is produced.
