Viridis Advances Colossus with Major Equipment Order Targeting 2028 Production

• First major equipment order placed for Colossus project
• Residue pressure filtration system critical for process and rehabilitation
• Order aligns with detailed 2028 execution schedule
• Staged purchase order limits capital exposure before final investment decision
• Project positioned as key non-Chinese rare earth supply source

Critical Equipment Order Marks Shift to Execution Phase

Viridis Mining and Minerals (ASX:VMM) has taken a decisive step towards bringing its Colossus Rare Earth Project into production by placing its first major equipment order. The contract, awarded to Dewater, covers residue pressure filtration systems essential for solid-liquid separation at the 5 million tonnes per annum processing facility. This move follows the completion of the Definitive Feasibility Study (DFS) and the securing of equity funding, signalling a firm transition from development into project execution.

Pressure Filtration Technology Central to Process and Environmental Strategy

The selection of Dewater’s pressure filtration equipment came after a rigorous 12-month competitive tender and technical evaluation involving global leaders in filtration technology. Viridis emphasises that this technology not only meets operational requirements but also supports progressive rehabilitation by producing low-moisture residue suitable for backfilling mined areas. This approach aligns with environmental best practices and has been integral to the project's Environmental Impact Assessment and preliminary licence approvals, reinforcing community and government support.

Long-Lead Procurement Protects 2028 Production Timeline

The pressure filtration package is a critical-path item with an estimated manufacturing lead time of 52–56 weeks. Early procurement allows Viridis to secure manufacturing slots, initiate vendor engineering, and synchronise delivery with the engineering, procurement, construction and commissioning (EPCM) schedule. Delays in such long-lead items could jeopardise the targeted first production in 2028, making this order a pivotal milestone in maintaining project momentum.

This order complements the previously awarded 138kV grid connection contract, collectively demonstrating that Colossus is advancing beyond planning into tangible execution phases. Achieving production by 2028 would position Colossus as one of the few large-scale heavy rare earth producers outside China, a critical consideration amid increasing global supply diversification efforts.

Staged Purchase Order Structure Mitigates Capital Risk

Viridis has structured the purchase order with staged engineering, manufacturing, and payment milestones aligned to the project timeline. Crucially, the company is not required to commit the full contract value prior to a final investment decision (FID), which acts as a contractual hold point. This arrangement allows Viridis to advance critical-path activities while limiting upfront capital exposure, providing flexibility as the project moves closer to FID.

With the DFS confirming the project's bankability and the recent equity raise securing up to US$120 million in funding, this equipment order underscores Viridis’ commitment to executing Colossus on schedule. The company is now focused on progressing EPCM and further critical-path commitments to realise the project’s potential as a major new source of light and heavy rare earths.

Bottom Line?

Viridis’ strategic equipment order anchors Colossus’ 2028 production goal, but the path to final investment decision remains a key milestone to watch.

Questions in the middle?

• How will the timing of the final investment decision affect subsequent equipment orders and project financing?
• What are the risks if manufacturing or delivery of the pressure filtration equipment faces delays?
• How might evolving environmental regulations impact Colossus’ progressive rehabilitation strategy?