Australian rare earths developer Viridis Mining and Minerals is in advanced discussions with potential buyers in the United States and Europe for output from its Colossus project in Brazil, the company’s chief executive said on May 27.
The firm has chosen not to pursue Chinese customers despite interest from that market, according to CEO Rafael Moreno.
Viridis inaugurated a research and processing centre in Poços de Caldas, Minas Gerais state, on Thursday. The facility has already produced the project’s first mixed rare earth carbonate, a concentrated material containing high-value elements such as neodymium and terbium.
The centre can process up to 100 kilograms of ore per hour and will generate product samples for potential customers while helping validate the flowsheet for the definitive feasibility study, Viridis said.
Discussions with investors and lenders have focused on the project remaining outside of Chinese supply chains, Moreno said.
Rare earth elements are critical for manufacturing electric vehicle motors, wind turbines, and defence systems. China dominates global production and refining, prompting governments and manufacturers in the West to seek alternative sources of supply.
“We took a stance pretty early on to go down the Western route. As diversification of supply chains occurs, we believe we’ll get better value for our products versus the suppression of prices that China is able to do when all the product goes there,” Moreno said.
The Colossus project covers more than 228 square kilometres within the Poços de Caldas alkaline complex and contains ionic adsorption clay deposits, which are generally cheaper to process than conventional hard-rock rare earth ores.
Viridis has advanced drilling, metallurgical testing, and permitting since acquiring the project in 2023, the company said. It received a preliminary environmental licence in late 2025 and applied for an installation licence in May, Viridis announced.
The project has attracted interest from export credit agencies and development financiers. Canada’s Export Development Canada issued a letter of interest for up to $100 million in November 2025, Viridis said. Australia’s Export Finance Australia has indicated support of up to $50 million. Additional backing has come from France’s Bpifrance and Brazil’s BNDES, according to the company.
A definitive feasibility study is expected around June 2026. Viridis is targeting project financing in the third quarter and aims to reach steady-state production by the end of 2028, Moreno said.
Development costs are estimated at $360 million to $370 million, although Moreno said the total could rise to about $400 million depending on financing requirements.
Rare earth prices have been volatile in recent years as Chinese supply has fluctuated. Viridis said it believes its focus on U.S. and European customers will help secure more stable commercial arrangements, Moreno said.
Earlier this year, Colossus was selected for a Brazilian strategic minerals initiative backed by BNDES and other partners.
Reuters contributed to this report.
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