Viridis Mining hooks global giant in US$915M rare earths offtake deal
Viridis Mining and Minerals (ASX: VMM) has locked in European chemical heavyweight Solvay S.A. as a long-term offtake and technology partner for its Colossus rare earths project in Brazil.
The binding deal covers an estimated 70 per cent of Colossus' forecast mixed rare earth carbonate (MREC) production and underpins around US$915 million (A$1.3B) in minimum revenue over an initial six-year take-or-pay period, massively de-risking the project’s path to targeted 2028 production in 2028.
Notably, the US$915M minimum revenue guarantee is based on supplying contracted volumes for just four of the seven payable elements – the principal magnet rare earths neodymium, praseodymium, dysprosium and terbium – over anthe initial six-year term.
Notably, the agreement locks in floor prices for the rare earths, cushioning Viridis against market downturns while leaving the door wide open to cash in on higher prices. The deal also includes the sale of the rare earth s elements samarium, yttrium and gadolinium, with committed volumes varying by element and year, providing another potentially material revenue stream.from a broader suite of important rare earths than is typical in many offtake deals..
In a significant strategic move that goes beyond a simple sales contract, the partnership is complemented by a planned licensing and technical services agreement. Under that arrangement, Solvay will license its world-class technology and provide technical support to Viridis to produce a higher-value, refined MREC in Brazil.
Management says the partnership will help Viridis capture more of the rare earths value chain in Brazil, bringing advanced processing technology and expertise into the country. By upgrading the end product to concentrate valuable magnet rare earths, the tie-up could also boost payability and improve project economics.
The company says that since June this year, MREC has been supplying product from its demonstration plant in the municipality of Poços de Caldas - adjacent to the Colossus project - to Solvay’s separation facility in La Rochelle, France, for product qualification.
We have worked closely with Solvay for some time and converting that relationship into a binding long-term offtake agreement 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. Viridis Mining and Minerals Managing Director Rafael Moreno
The offtake agreement is the latest in a string of development milestones for Viridis. In August, the company tabled a definitive feasibility study (DFS) for Colossus, valuing the project at a hefty US$1.866 billion (A$2.62B) and secured up to US$120M (A$171M) in strategic equity funding for upfront development costs. That singular leap forward was followed in September by the company's first major equipment orders for the project and the appointment of Sedgman and Blossom as its engineering, procurement and construction management partner.
With the DFS bedded down, funding secured, project execution underway and now a binding offtake in the bag with a top-tier European counterparty, Viridis appears to have deftly ticked off its key prerequisites for development, underpinned by the offtake deal as a key leg-up towards the next step of finalising debt financing.
Solvay S.A. is a pioneering Belgian-French multinational chemical company headquartered in Brussels, Belgium with a history stretching back to 1863 and net sales of €4.3 billion (A$6.91B) in 2025. It represents a formidable partner and an outstanding vote of confidence in Viridis' Colossus project.
For a junior developer, securing a binding agreement with a partner of Solvay’s calibre is no small feat. And with the commercial foundation for its Colossus mine now almost literally chiselled into stone, Viridis looks to have a clear fairway to bring a new, non-Chinese source of critical rare earths to the Western market.
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