Viridis Mining and Minerals has signed a binding, long-term supply agreement with Solvay for rare earth production from its Colossus project in Poços de Caldas, in Brazil’s Minas Gerais state. The deal provides a market for most of the project’s planned output and is expected to help the company secure financing and move toward construction.
Under the agreement, Solvay will purchase minimum volumes of mixed rare earth carbonate (MREC) from the start of production, planned for 2028, through the end of 2034. Viridis said the contracted minimum volumes represent about 70% of projected output.
The company estimates that the minimum volumes and price floors set for the project’s main magnetic elements could support at least US$915 million in revenue between 2029 and 2034, provided the agreed volumes are delivered.
Solvay also has a right of first offer on the project’s remaining MREC production through 2034, but is not required to buy volumes beyond its minimum commitments.
The companies are separately negotiating a licensing and technical services agreement. Under the proposed arrangement, Solvay would provide technology and support to help Viridis produce a more refined, higher-value MREC in Brazil. Viridis said the supply agreement reduces a key commercial risk and should contribute to completing debt financing for the project.
Sources: Folha Mercado.