Viridis Mining and Minerals Limited (ASX: VMM) is positioning its Colossus rare earth project in Brazil as a potential supplier to European manufacturers seeking alternatives to China-dominated supply chains.
The strategy gained renewed attention after Viridis Managing Director Rafael Moreno told The Guardian that the company is targeting initial commercial production at the end of 2028. He said the planned operation was being designed around approximately 5% of the global market for magnet rare earths.
That market-share figure is a company ambition rather than current production or contracted demand.
Demonstration Plant Produces MREC
Viridis produced its first batch of mixed rare earth carbonate, or MREC, at its demonstration plant in Poços de Caldas, Minas Gerais, in May.
The semi-industrial facility is designed to process 100 kilograms of ionic-clay feed per hour through continuous operation. Feed for the plant comes from Colossus’s Northern Concessions, which Viridis expects to support the proposed mine’s early production years.
The resulting MREC contains magnet-related elements including neodymium, praseodymium, dysprosium and terbium. Viridis is using the facility to generate samples for prospective customers, test its processing flowsheet and train operating personnel.
However, demonstration-scale production does not establish that the process will achieve projected recoveries, costs or reliability at commercial scale.
Solvay Agreement Remains Non-Binding
Viridis and chemical producer Solvay signed a non-binding letter of intent in June covering the proposed supply and processing of rare earth materials.
Under the proposed arrangement, Viridis would supply Brazilian MREC to Solvay’s La Rochelle facility in France. Solvay would use its separation technology to refine the material into individual high-purity rare earth oxides used in electric motors, wind turbines, electronics and defense applications.
The companies said they would work toward a definitive sourcing agreement. No binding offtake contract has been announced.
European interest in the project extends beyond Solvay. European Commissioner for International Partnerships Jozef Síkela visited the Colossus processing center in June as the European Union examined potential critical-mineral partnerships with Brazil.
The International Energy Agency has identified magnet rare earths among the materials most exposed to supply disruption because of concentrated production, limited substitution options and their importance to downstream manufacturing.
Company Targets Late-2028 Production
Viridis reports an Ore Reserve of 200.1 million tonnes containing approximately 579,000 tonnes of total rare earth oxides at Colossus. Its definitive feasibility study outlines a 25-year operating plan, with additional reserve inventory that the company estimates could support a longer mine life.
The company reports a post-tax net present value of US$1.36 billion and a post-tax internal rate of return of 36.4% for the project. Those estimates depend on the commodity prices, recoveries, costs, production rates and other assumptions used in the study.
Reuters reported in June that Viridis planned a commercial facility capable of producing approximately 15,000 tonnes of MREC annually.
Viridis says grid-connection work, engineering, procurement and long-lead equipment activities have begun. However, these activities are being conducted ahead of a final investment decision.
Commercial Execution Still Carries Risk
Colossus is not yet a commercial mining operation. Viridis must complete its financing, permitting, construction, commissioning and production ramp-up plans before it can establish dependable supply for European customers.
The company must also convert proposed relationships into binding sales agreements and demonstrate that commercial production can consistently meet customer specifications.
The late-2028 production schedule and 5% market-share objective remain forward-looking targets. Delays, cost increases, processing difficulties, financing conditions or changes in rare earth prices could affect the project’s development and economics.
Sources
- The Guardian — China’s Stranglehold on Rare Earths Must Be Ended, Says Hopeful Supplier to EU
- Viridis Mining and Minerals — Colossus Project
- Viridis Mining and Minerals — First MREC Product at Colossus
- Solvay and Viridis Sign Letter of Intent for Rare Earth Materials Sourcing
- Reuters — EU Courts Brazil as Strategic Partner in Critical-Minerals Race
- International Energy Agency — Global Critical Minerals Outlook 2026
Editorial Disclosure
This article was prepared from publicly available reporting and company disclosures. Mining Markets Report received no compensation from Viridis Mining and Minerals Limited or Solvay for its preparation or publication and has no disclosed business relationship with either company.
The author and publisher do not hold securities in Viridis Mining and Minerals Limited. Resource, reserve, recovery, economic and development information attributed to Viridis has not been independently verified by Mining Markets Report.
The Viridis-Solvay arrangement is a non-binding letter of intent, and no definitive sourcing agreement has been announced. Demonstration-plant production does not establish commercial-scale performance.
Statements concerning financing, permitting, construction, production timing, market share, recoveries, costs, offtake and European supply are forward-looking and subject to technical, financial, regulatory and market risks.
This article is for informational purposes only and does not constitute investment advice or a recommendation to buy or sell securities. Readers should conduct their own due diligence and consult a qualified financial professional. Read the full Mining Markets Report disclaimer.
