Viridis Mining locks in a fixed-price, turnkey contract for critical power infrastructure at its Colossus Rare Earth Project, aligning with the company’s Final Investment Decision and production timelines.
- Binding contract for 3.2km, 138kV transmission line signed
- Reserved 27MW grid capacity secured from December 2027
- Turnkey delivery reduces execution and cost risks
- Infrastructure designed for up to 90MVA future expansion
- Supports targeted FID in H2 2026 and production in H1 2028
Major Power Infrastructure Contract Signed
Viridis Mining and Minerals (ASX:VMM) has crossed a crucial threshold in its Colossus Rare Earth Project with the execution of its first major project delivery contract. The company inked a binding agreement with Brazilian municipal electricity distributor DME to engineer, procure, and construct a dedicated 3.2-kilometre, 138kV high-voltage transmission line linking the Colossus site to the Saturnino Substation on the national grid.
This fixed-price contract, valued at approximately BRL3.97 million (around US$0.8 million), includes an initial reserved power allocation of 27MW starting December 2027, aligning neatly with Viridis’ development schedule targeting first production in the first half of 2028. By securing this essential electrical infrastructure under a turnkey delivery model, Viridis significantly reduces execution and interface risks, placing a single accountable party in charge of permitting, engineering, procurement, construction, and energisation.
Built for Growth Beyond Initial Needs
Notably, the transmission infrastructure is designed with substantial headroom, capable of handling up to 90MVA. This forward-thinking capacity provides a clear pathway for future project expansion without the need for major additional grid investments. DME has already begun procurement of critical long-lead electrical equipment, supporting the planned energisation timeline and mitigating supply chain risks.
Viridis is also advancing tenders for other key electrical infrastructure, including transformers and switch rooms, as the company accelerates execution activities ahead of its Final Investment Decision (FID), slated for the second half of 2026. This milestone dovetails with the company’s recent announcements of first Mixed Rare Earth Carbonate (MREC) production at its demonstration plant and a strategic offtake and technical partnership with Solvay, further de-risking the project’s pathway.
Strategic Milestone in Project Execution
Managing Director Rafael Moreno highlighted the significance of this contract as Viridis transitions from development to execution. He emphasised the importance of securing dedicated power infrastructure in Brazil, where around 90% of electricity is generated from renewable sources, aligning with sustainable mining practices. Moreno noted that the turnkey agreement with DME not only locks in grid capacity but also mitigates cost escalation risks through a fixed-price arrangement.
Alongside ongoing negotiations with Solvay for a binding offtake and technical partnership, Viridis is methodically advancing project financing, Engineering, Procurement, and Construction Management (EPCM) selection, and procurement activities. These steps collectively strengthen the company’s confidence in delivering on its targeted FID in H2 2026 and commencing production in H1 2028.
Bottom Line?
Viridis’ power infrastructure contract marks a tangible shift toward construction readiness, but execution and financing progress will be critical to sustaining momentum toward 2028 production.
Questions in the middle?
- Will Viridis secure binding offtake terms with Solvay as planned in coming months?
- How will supply chain dynamics affect the timely delivery of electrical infrastructure?
- What financing arrangements will underpin the Final Investment Decision expected in H2 2026?