Viridis Mining and Minerals Ltd is engaged in discussions with potential buyers for rare earths mined in Brazil. This comes as Western countries are seeking to lessen their dependence on China for critical elements essential for electric vehicles and wind turbines. The Australian-listed mineral developer is in talks with prospective off-takers from both the US and Europe. The company intends to secure multiple buyers, encompassing rare-earth refineries and magnet manufacturers, according to Klaus Petersen, Brazil country manager.
The negotiations involve establishing a minimum price for the output originating from Viridis’s Colossus project in Minas Gerais, estimated at $US360 million ($536 million). Petersen noted that setting a floor price would offer a safeguard against potentially low prices established in China, which currently accounts for approximately 90 per cent of the global rare-earth permanent magnet production. Viridis Mining and Minerals Ltd focuses on the exploration and development of mineral projects. They aim to discover and develop resources that are critical for modern technologies and industries.
These discussions are unfolding as Europe and Brazil progress towards a political agreement concerning critical raw materials. European Commission President Ursula von der Leyen has indicated that such an agreement would structure collaboration on joint investments in lithium, nickel, and rare earths. She described these materials as central to strategic independence amid global mineral supply concerns. Brazil possesses the largest rare-earth reserves after China, yet its commercial production remains limited.
Brazil aims to leverage more of its geological potential, while junior miners involved in critical-minerals projects are advocating for financial guarantees to improve access to funding. Viridis is targeting a final investment decision in the latter half of the year, with the goal of commencing production by 2028.
