Viridis Mining has hit major milestones at its Colossus Rare Earth Project, including submitting a key environmental licence, exceeding recovery targets at its Demonstration Plant, and securing a strategic partnership with Solvay.
- Installation Licence application lodged for Colossus project
- Demonstration Plant achieves over 80% recovery of magnetic rare earth oxides
- Non-binding offtake and technical partnership LOI signed with Solvay
- Binding power transmission contract signed, securing grid connection
- Strong pro forma cash position supports progression to Final Investment Decision
Installation Licence Submission Marks Construction Readiness
Viridis Mining and Minerals Limited (ASX:VMM) has taken a pivotal step towards developing its flagship Colossus Ionic Adsorption Clay Rare Earth Project in Brazil by submitting the Installation Licence (IL) application. This milestone follows the earlier approval of the Preliminary Licence and represents the second phase in the three-stage environmental permitting process. Approval of the IL will greenlight site development and construction activities, propelling the project closer to the Final Investment Decision (FID) targeted for the second half of 2026.
Demonstration Plant Outperforms Pre-Feasibility Expectations
The company’s state-of-the-art Demonstration Plant at its Rare Earth Research and Processing Centre in Poços de Caldas has now produced its first batch of Mixed Rare Earth Carbonate (MREC), showcasing the scalability and robustness of Viridis’ processing flowsheet. Notably, recoveries of Magnetic Rare Earth Oxides (MREO) have surpassed 80% in July 2026, exceeding the Pre-Feasibility Study (PFS) assumptions of 76%. This performance not only validates the processing technology but also enhances the project's economic outlook by reducing operational risks and costs.
The Demonstration Plant is among the largest semi-industrial, continuous-operation ionic clay rare earth processing facilities outside China. Its successful operation supports ongoing product qualification, financing efforts, and strategic partnerships ahead of FID. The plant’s design emphasizes sustainability, featuring reagent and water recovery systems and residue management aligned with best environmental practices.
Strategic Partnership with Solvay Advances Offtake and Industrialisation
Viridis has secured a non-binding Letter of Intent (LOI) with Solvay S.A., a global leader in rare earth separation technology. The LOI outlines a framework for long-term supply of MREC from Colossus and a technical partnership aimed at maximising downstream industrialisation capabilities within Brazil. This collaboration is expected to support product qualification, financing arrangements, and the development of a Western-aligned rare earth supply chain.
Solvay’s century-long operational presence in Brazil and its expertise in separation technologies position it as a critical partner for Viridis. The partnership also aligns upstream mining with downstream processing and magnet production, potentially strengthening supply chain resilience for permanent magnet materials essential to electrification and advanced manufacturing sectors.
Power Infrastructure Contract Secures Critical Grid Connection
In a significant project execution milestone, Viridis signed a binding agreement with local electricity distributor DME for the construction of a dedicated 3.2km, 138kV transmission line to connect Colossus to the Brazilian grid. The contract includes reserved power capacity of 27MW from December 2027, with infrastructure designed to accommodate future expansion up to 90MVA without major additional investment. This fixed-price turnkey contract reduces execution risk and supports the company’s timeline for first production in the first half of 2028.
Resource Upgrade and Feasibility Study Progress
Exploration and infill drilling campaigns have enhanced geological confidence in the Colossus resource, underpinning an updated Mineral Resource Estimate of 473 million tonnes at 2,505ppm Total Rare Earth Oxides (TREO) and 592ppm Magnetic Rare Earth Oxides (MREO). The Measured and Indicated categories now boast industry-leading grades, critical for securing project financing.
The Definitive Feasibility Study (DFS), incorporating recoveries from the Demonstration Plant, is on track for completion in August 2026. The DFS will provide the detailed technical and economic foundation necessary for awarding the Engineering, Procurement and Construction Management (EPCM) contract and finalising project financing arrangements.
Board Strengthening and Financing Momentum
Viridis has bolstered its leadership with the appointment of Geoff Bedford as a Non-Executive Director. Bedford brings over two decades of rare earths industry experience, including leadership roles at Neo Performance Materials and Molycorp, and a strong track record in capital markets and project financing.
On the financing front, the company continues to engage with export credit agencies and international lenders, supported by financial advisers Goldman Sachs and Cutfield Freeman & Co. Letters of support and interest have been received from Export Finance Australia, Export Development Canada, and Bpifrance. Additionally, Viridis is progressing concessional debt discussions under Brazil’s BRL5 billion strategic minerals initiative with BNDES and FINEP, targeting execution of funding packages in Q3 2026.
Viridis holds a pro forma cash position of approximately A$56 million, combining A$20.4 million in cash at quarter-end with US$25 million available under binding investment agreements, ensuring it is fully funded to advance through FID and early project execution.
Downstream Integration and Recycling Initiatives
The Viridion Joint Venture, 50% owned by Viridis, is advancing downstream refining and magnet recycling strategies in Brazil. Efforts include development of the Centre for Rare Earths Innovation, Technology and Recycling (CRITR), refinery optimisation studies, and participation in the MagBrás initiative aimed at creating an integrated Brazilian rare earth value chain. Funding applications under Brazil’s FINEP Critical Minerals program seek non-dilutive support for these initiatives.
Expanding International Engagement and Supply Chain Positioning
Viridis’ Colossus Project has attracted high-level international attention, including a visit from European Union Commissioner for International Partnerships Jozef Síkela. The delegation’s visit underscored Colossus’ strategic role in diversifying rare earth supply chains and explored potential EU financing and policy support. Viridis also participated in the G7 Critical Minerals Investment Forum, highlighting the project’s alignment with Western supply chain security objectives and the need for coordinated public-private support.
Bottom Line?
Viridis is poised to convert its technical and permitting progress into commercial momentum, with key upcoming catalysts including Installation Licence approval, DFS completion, and binding offtake agreements.
Questions in the middle?
- Will the Installation Licence approval be granted on schedule to maintain FID timing?
- How will final terms with Solvay shape the project's economics and financing structure?
- Can Viridis secure the targeted debt financing commitments by end of Q3 2026?