- 01Viridis signed a six-year MREC offtake deal with Solvay subsidiary Rhodia.
- 02Minimum volumes cover ~70% of Colossus forecast output.
- 03Contracted volumes underpin ~US$915m in starting revenue.
- 04Solvay will license technology and support higher-value processing in Brazil.
Viridis Mining and Minerals (ASX: VMM) has signed a binding long-term offtake deal with a subsidiary of Belgium multinational chemical company Solvay SA, securing a contracted route-to-market for mixed rare earth carbonate (MREC) production from its Colossus rare earth project in Brazil.
The initial six-year contract with French specialty and basic chemicals manufacturer Rhodia Operations SAS will commence with first production from Colossus targeted for 2028, with lower committed volumes during the initial ramp-up period followed by binding take-or-pay commitments in 2029.
It includes varied commitments across seven payable rare earth elements — neodymium, praseodymium, dysprosium, terbium, samarium, yttrium, and gadolinium — in the supplied MREC, enabling Viridis to capture greater value from a broader rare earth basket than many conventional offtake arrangements.
The minimum volumes represent approximately 70% of forecast MREC production from Colossus across the initial term, with Solvay holding a right of first offer over the remaining planned production outlined in the project’s definitive feasibility study.
Technical Services Agreement
Minimum contracted volumes (including the ramp-up period) for principal magnetic rare earths neodymium, praseodymium, dysprosium and terbium represent approximately 64% of forecast production of these elements over the six year take-or-pay period.
This underpins starting revenue for Viridis of approximately US$915 million, subject to delivery of the contracted volumes, with additional revenue potential from purchases of MREC beyond the minimum commitments.
The binding offtake deal is complemented by a separate licencing and technical services agreement, under which Solvay will licence its technology to Viridis and provide technical support to produce a higher-value refined MREC in Brazil, supporting the establishment of a domestic downstream rare earth value chain.
By combining Colossus’s large-scale rare earth production platform with Solvay’s globally recognised separation expertise and technology, the agreement is expected to increase the concentration of valuable magnetic rare earths from Colossus, improving product value and supporting stronger payability while supporting the in-country development of advanced rare earth processing capabilities.
MREC produced at Viridis’ operational demonstration plant in Poços de Caldas has been supplied to Solvay’s La Rochelle separation facility in France since June for product qualification, supporting technical alignment and the development of commercial product specifications.
Long-Term Relationship
Viridis managing director Rafael Moreno said converting the long-term relationship with Solvay into a binding offtake agreement was an important milestone for the company.
“There are very few established Western rare earth separation groups capable of providing us with a credible route-to-market, so securing Solvay as our partner addresses a key commercial risk for Colossus while providing greater confidence in the project’s long-term economics,” he said.
“Solvay brings decades of rare earth separation expertise and technology, some of which we will work together to bring into Brazil, supporting our strategy to develop processing capability and capture more of the rare earth value chain domestically.”
“Securing binding offtake with Solvay, alongside our advanced senior debt financing process, puts us in a strong position as we progress towards targeted production at Colossus in 2028.”
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