Key Highlights

  • Viridis has executed a long-term binding offtake agreement with Rhodia Operations, a Subsidiary of Solvay.
  • Contractual price floors apply to neodymium, praseodymium, dysprosium and terbium.
  • The terms underpin minimum Revenue of about US$915 million, net of payability factors and subject to delivery.
  • First production from Colossus is targeted in 2028.

Viridis Mining and Minerals (ASX:VMM) announced on 5 November 2026 that it had executed a long-term binding offtake agreement with Rhodia Operations, a subsidiary of Solvay (EBR:SOLB), for its Colossus Rare Earth Project in Minas Gerais, Brazil. Viridis is targeting first production from Colossus in 2028.

The initial term begins at first production and runs to 31 December 2034. It includes lower committed volumes during ramp-up, and binding take-or-pay commitments begin on the earlier of commercial operations or 1 January 2029.

Volumes and products

Minimum volumes of mixed rare earth carbonate (MREC) represent about 70% of forecast Colossus production across the term, based on the production target in the definitive feasibility study released on 20 August 2026. Solvay has a right of first offer over the remaining planned production through 2034, without an obligation to buy more than its minimum commitments.

The agreement covers seven payable elements: neodymium, praseodymium, dysprosium, terbium, samarium, yttrium and gadolinium.

Price floors and minimum revenue

Contractual price floors apply to the four principal magnet rare earths: neodymium, praseodymium, dysprosium and terbium. Minimum volumes of those four elements account for about 64% of forecast production across the six-year take-or-pay window.

Together, those terms underpin minimum revenue of about US$915 million, net of payability factors and subject to delivery. That figure is a minimum under the contract, not a revenue forecast, and actual revenue would depend on volumes delivered and market prices above the floors.

Why a floor matters

Rare earth prices are volatile and heavily influenced by Chinese production and export policies. Price floors give a developer and its lenders protection against prolonged low prices, which can make Debt Financing easier to secure. Take-or-pay terms add further certainty by requiring the buyer to pay for minimum volumes whether or not it takes delivery.

Managing Director Rafael Moreno said that with very few established Western rare earth separation groups able to provide a credible route to market, securing Solvay addressed a key commercial risk for Colossus.

Beyond offtake

A separately contemplated licensing and technical services agreement would see Solvay license technology to enable domestic production of higher-value, refined MREC in Brazil. Moreno said Solvay brought decades of separation expertise, some of which the companies would work together to bring into Brazil.

Solvay operates a rare earths separation Facility in La Rochelle, France, and has been seeking feedstock outside China to Supply European magnet makers.

Funding position

Viridis secured Equity funding of up to US$120 million in August, placed its first major equipment order, and appointed Sedgman and Blossom as engineering, procurement and construction management partner in September. The company is now advancing senior debt financing ahead of a final Investment decision.

Risks

The minimum revenue is subject to delivery, so production delays would affect it. Project construction, ramp-up and the performance of the ionic clay processing route at scale all carry risk. The licensing agreement is not yet binding. Brazilian permitting and community engagement will also be important.

The agreement also matters for the wider rare earths sector. Western governments and manufacturers have sought supply chains that do not depend on Chinese separation capacity, but relatively few developers have so far secured binding offtake with established separators. A take-or-pay contract with price floors is a relatively significant form of commercial support. Viridis has said the Partnership addresses a key commercial risk; financing terms will show how much the debt market agrees.

What comes next

The key next milestones are senior debt financing and the final investment decision, followed by construction towards first production in 2028. Progress on the licensing agreement with Solvay will indicate whether Viridis can move further into refined products.