Viridis Mining and Minerals (ASX:VMM) has executed a binding long-term offtake agreement with Rhodia Operations SAS, a member of the Solvay S.A. group, securing a contracted route to market for mixed rare earth carbonate production from its Colossus Rare Earth Project in Brazil, with minimum contracted volumes representing approximately 70% of forecast MREC production across the initial term.

Key Points

  • Binding long-term offtake agreement executed with Rhodia Operations SAS, a Solvay S.A. group member, covering mixed rare earth carbonate production from the Colossus Rare Earth Project
  • Agreement covers seven payable rare earth elements: neodymium, praseodymium, dysprosium, terbium, samarium, yttrium and gadolinium
  • Binding take-or-pay commitments commence on the earlier of Commercial Operations Date or 1 January 2029, ending 31 December 2034, with a further five-year renewal period contemplated
  • Minimum contracted volumes for principal magnetic rare earths over the six-year take-or-pay period underpin minimum revenue of approximately US$915 million, subject to Viridis delivering contracted volumes
  • A separately contemplated Licensing and Technical Services Agreement would see Solvay license technology and provide technical support to Viridis to produce a higher-value refined MREC in Brazil

Agreement Terms and Committed Volume Structure

The initial term of the agreement commences with first production, targeted for 2028, and ends on 31 December 2034, including lower committed volumes during the initial ramp-up period. Minimum MREC volumes represent approximately 70% of Colossus' forecast MREC production across the initial term. Minimum contracted volumes for the principal magnetic rare earths — neodymium, praseodymium, dysprosium and terbium — including the ramp-up period, represent approximately 64% of forecast production of these elements over the six-year take-or-pay period from 2029 to 2034. Solvay holds a right of first offer over all remaining planned MREC production beyond its minimum commitments through to 31 December 2034, based on the Definitive Feasibility Study production target.

Minimum Revenue and Pricing Framework

Minimum contracted volumes for the principal magnetic rare earths, multiplied by their respective contractual price floors net of applicable payability factors, underpin minimum revenue of approximately US$915 million, subject to Viridis delivering the contracted volumes. Samarium, yttrium and gadolinium are excluded from this calculation as no price floors apply to these elements. The filing states additional revenue potential exists through purchases of MREC beyond minimum commitments, market-linked pricing mechanisms above floor prices and other agreed product-specific pricing arrangements. The agreement also preserves Viridis' exposure to qualifying government price-support mechanisms and incentives received by either party through the agreed pricing framework.

Demonstration Plant Supply and Licensing and Technical Services Agreement

Since June 2026, MREC produced at Viridis' operational Demonstration Plant in Poços de Caldas has been supplied to Solvay's La Rochelle separation facility in France for product qualification, supporting technical alignment and the development of commercial product specifications. The separately contemplated Licensing and Technical Services Agreement would see Solvay provide technology and technical support to enable Viridis to produce a higher-value refined MREC in Brazil, increasing the concentration of valuable magnetic rare earths. The filing states that with the Definitive Feasibility Study completed, equity funding secured and project execution underway, the binding offtake agreement represents a milestone towards finalising debt financing and delivering targeted first production from Colossus in 2028.