Australian rare earth miner Viridis Mining and Minerals is holding advanced talks with potential offtake buyers across Europe and the United States for its Colossus mine in Brazil, Chief Executive Officer Rafael Moreno told Reuters. The company has explicitly ruled out partnerships with Chinese buyers for the project.
Viridis officially inaugurated its rare earth research and processing center in Pocos de Caldas on Thursday, moving forward with preparations to achieve steady-state production at the Colossus mine by the end of 2028. The new facility will produce mixed rare earth carbonate containing key minerals including neodymium and terbium, which is expected to accelerate ongoing offtake negotiations. Amid a global race for rare earths and other critical minerals, European and U.S. authorities are pushing to cut reliance on China, as these materials are indispensable for manufacturing electric vehicles and building defense systems.
Moreno noted that while the project has drawn strong interest from potential Chinese offtakers, the company adopted a Western-focused strategy at an early stage. Against the backdrop of global supply chain diversification, Viridis believes selling products to Western clients will deliver better returns, rather than facing price pressure if all output flows to a single market. Investors and lenders involved in the project have also reached a consensus to keep the asset outside Chinese supply chains.
China produces 60% of the world’s rare earth ore and more than 90% of global rare earth refined products. In April 2025, Beijing imposed rare earth export restrictions in response to U.S. tariffs, and has repeatedly stated that it will review all eligible export applications in compliance with relevant regulations.
Colossus marks Viridis’ first project in Brazil, while the company also operates assets in Australia and Canada. The newly launched processing center is capable of handling 100 kilograms of ore per hour. The total project investment is estimated at $360 million to $370 million, and the figure could rise to $400 million if lenders require additional working capital. Viridis expects to complete project financing in the third quarter of this year.
Colossus is a large ionic adsorption clay (IAC) rare earth resource with JORC-compliant mineral resources standing at 493 million tonnes at 2,508ppm total rare earth oxides (TREO). Its Measured and Indicated resources total 329 million tonnes grading 2,680ppm TREO. The grades of magnet rare earth oxides (MREO) at the mine are highly competitive compared with global peers in the IAC sector. ANSTO has verified the project’s metallurgical test results, confirming genuine ionic rare earth mineralization. Such resources feature simpler leaching processes and lower operational costs than hard-rock rare earth deposits. According to Rare Earth Exchanges (REEx), the U.S. Department of Defense is actively searching for new sources of heavy rare earth elements (HREE).
The project has secured solid partnerships and funding support. Viridis collaborates with Invest Minas, local municipal governments, and Ionic Rare Earths via the Viridion joint venture, aligning with Brazil’s policy to foster a domestic rare earth supply chain. Its funding channels include Brazilian public financing institutions BNDES and FINEP. The miner also raised AU$11.5 million in capital in July 2025, and all funding arrangements are on public record.
