Viridis Mining plugs into Brazilian grid for Colossus rare earths push

Viridis Mining and Minerals’ Colossus rare earths project in Brazil

Viridis Mining and Minerals (ASX: VMM) has bagged its first major project delivery contract, signing a binding agreement with municipal electricity distributor DME for the turnkey construction of a dedicated 3.2-kilometre, 138-kilovolt high-voltage transmission connection to its Colossus rare earths project in Brazil.

The fresh agreement secures critical electrical infrastructure by covering the licensing, engineering, procurement and construction of the high-voltage transmission line from the nearby Saturnino substation to the project, alongside an initial reserved power allocation of 27 megawatts for stage one operations.

Viridis has locked in the reserved grid capacity starting from December 2027. This timeline lines up with its development schedule and supports the planned run-up to first production, scheduled for the first half of 2028.

To materially reduce risk, DME will provide a fully integrated one-stop service. For the company, this ensures that a single accountable counterparty is responsible for permitting, engineering, procurement, construction, and energisation.

Viridis says the transmission line and associated substation infrastructure are being designed with a capacity of up to 90 megavolt-amperes, giving the company substantial project headroom for future growth without needing further costly grid infrastructure investment.

The commercial package has been locked in at a fixed price of 3.97 million Brazilian Real (A$1.1 million). Designed to be paid in stages as development progresses, this savvy commercial structure delivers absolute price protection to Viridis by eliminating exposure to any downstream engineering or construction cost overruns.

Notably, DME has already jumped the gun on ordering critical long-lead electrical equipment, a move that keeps Colossus firmly on track for its December 2027 power-up while helping to sidestep the supply-chain headaches that have plagued many major projects.

The execution of this agreement marks an important milestone for Viridis as we formally transition from project development into project execution. Securing dedicated power infrastructure in Brazil, where approximately 90% of energy is generated from sustainable sources3, is a critical requirement for any mining project.   Viridis Mining and Minerals Managing Director Rafael Moreno

The company’s rapid pace has continued ahead of a final investment decision (FID) on Colossus, with Viridis already fielding tenders for key electrical infrastructure packages, including power transformers and electrical switch rooms.

This follows on from recent installation licence lodgements and on the back of stellar infill drilling that yielded shallow hits up to 8m grading 7076 parts per million (ppm) total rare earth oxides.

With the power infrastructure deal marking another major project milestone, Viridis has also chalked up two other significant wins in recent weeks, producing its first mixed rare earth carbonate from its 5000-square-metre demonstration plant and striking a strategic partnership with Solvay. The agreement paves the way for Solvay to begin receiving mixed rare earth carbonate from Colossus from 2028, further strengthening the project's path to production.

The Solvay deal heavily de-risks the project as Viridis heads towards its targeted FID slated for the second half of 2026.

While Colossus remains its flagship asset, the company holds a diversified portfolio of other exploration assets across multiple jurisdictions.

In Canada, it holds the South Kitikmeot project, which is prospective for gold. In Western Australia, its holdings include the Boddington West gold project, the Bindoon nickel, copper and platinum group elements project, alongside the Poochera and Smoky kaolin-halloysite projects.

Viridis says its busy upcoming schedule includes ongoing negotiations with Solvay, with the parties on track to reach a binding offtake and technical partnership agreement in the coming months to feed the hungry downstream magnet market.

At the same time, it’s advancing project finance options, locking in its engineering, procurement, and construction management selections, and executing broader equipment acquisition packages to fast-track development preparation.

With its power supply secured, a tier-one chemical partner engaged, and first production of mixed rare earth carbonate validating its process flowsheets, Viridis is methodically ticking every box on its development checklist. The market will likely keep a close eye on this rare earths explorer as it continues to de-risk and morph into a developer.

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