Viridis Mining and Minerals (ASX:VMM) targets first production from the Colossus Rare Earth Project in Brazil in 2028 after executing a long-term binding offtake agreement with Rhodia Operations, a subsidiary of Solvay (EBR:SOLB).
The initial term begins at first production and concludes on 31 December 2034, featuring lower committed volumes during ramp-up and binding take-or-pay commitments starting on the earlier of commercial operations or 1 January 2029.
Minimum mixed rare earth carbonate (MREC) volumes represent around 70% of forecast Colossus production across the term, based on the Definitive Feasibility Study production target released on 20 August 2026.
Under the terms, Solvay retains a right of first offer over remaining planned MREC production through 2034 without an obligation to purchase beyond its minimum commitments.
The agreement covers seven payable elements: neodymium, praseodymium, dysprosium, terbium, samarium, yttrium, and gadolinium.
Contractual price floors apply to the four principal magnetic rare earths: neodymium, praseodymium, dysprosium, and terbium. Minimum volumes of these four elements account for around 64% of forecast production across the six-year take-or-pay window and underpin minimum revenue of US$915 million ($1.3 billion), net of payability factors and subject to delivery.
A separately contemplated licensing and technical services agreement would see Solvay license technology to enable domestic production of higher-value, refined MREC.
Managing Director Rafael Moreno says ‘converting’ the company’s ongoing relationship with Solvay into a binding long-term offtake is an important milestone for Viridis.
“With very few established Western rare earth separation groups capable of providing a credible route to market, securing Solvay as our partner addresses a key commercial risk for Colossus while providing greater confidence in the project’s long-term economics,” Moreno says.
“Importantly, this partnership extends well beyond offtake. Solvay brings decades of rare earth separation expertise and technology, some of which we will work together to bring into Brazil, supporting our strategy to develop processing capability and capture more of the rare earth value chain domestically.”
Viridis secured equity funding of up to US$120 million in August, placed its initial major equipment order, and appointed Sedgman and Blossom as engineering, procurement, and construction management partner in September.
The company is currently advancing senior debt financing ahead of a final investment decision.
Viridis Mining and Minerals is a resource explorer and developer with assets in Brazil, Canada, and Australia.
Write to Paula Fabe at Mining.com.au
Main image: Viridis Mining and Minerals
