Australian company Viridis Mining and Minerals has entered advanced negotiations with prospective buyers in Europe and the US for future offtake from its Colossus rare earths project in Minas Gerais, Brazil.
Virdis CEO Rafael Moreno said that the company is not engaging in talks with Chinese buyers for product offtake, reported Reuters.
The company recently inaugurated its rare earths research and processing centre in Poços de Caldas.
The facility is expected to produce the first mixed rare earth carbonate from the Colossus mine, containing minerals such as neodymium and terbium.
Moreno stated that the new centre will assist in negotiations with buyers and support the company’s plans to achieve steady-state production by late 2028.
The site is designed to process up to 100kg per hour (kg/h) of ore.
The cost of the Colossus project is estimated at $360m (A$501.67m)–370m, with a possible increase to $400m if lenders require additional working capital.
Financing for the project is due be completed in the third quarter.
Colossus is Viridis’ first operation in Brazil. The company also conducts activities in Australia and Canada.
The launch of the centre comes as governments in the US and Europe seek to reduce reliance on China for the supply of rare earths and other critical minerals used in electric vehicles and defence technologies.
Although Viridis has seen offtake interest from various global parties, Moreno said the company has chosen to work solely with Western buyers.
Moreno added: “We took a stance pretty early on to go down the Western route. As diversification of supply chains occur, we believe we will get better value for our products versus the suppression of prices that China is able to do when all the product goes there.”
Discussions with investors and lenders have included keeping the project outside Chinese supply chains.
“Viridis in advanced talks for Brazil rare earths project” was originally created and published by Mining Technology, a GlobalData owned brand.
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