Brazil grants major tax breaks for Araxá Project

St George Mining (ASX:SGQ) has secured a financial boost for its Araxá Niobium and Rare Earths Project following the signing of a preferential goods tax regime by the State of Minas Gerais, Brazil.

The landmark agreement, signed by Governor Romeu Zema alongside key economic development institutes, is set to drastically reduce development costs for what is being positioned as a world-class critical minerals operation.

Under the new regime, St George is granted substantial tax exemptions on all equipment and materials acquired for the project.

This includes vital infrastructure for both the upcoming pilot plant and the future full-scale industrial facility.

By waiving the State goods tax—which can reach rates of up to 18%—the government is directly subsidising the project's capital expenditure, a move that Executive Chairman John Prineas says will feed directly into the company’s economic studies.

The announcement follows a high-profile Critical Minerals Forum held in Araxá on Dec. 1, 2025, which drew over 200 delegates.

Governor Zema, an Araxá native, emphasised the state's commitment to becoming a leader in domestic supply chains for green energy minerals.

The collaboration underscores a strategic shift toward downstream initiatives, such as the MagBras Project’s Lab Fab facility.

At the time of reporting, St George Mining's share price was $0.097.