By Oliver Griffin
SAO PAULO, May 28 (Reuters) - Australian rare earths miner Viridis Mining and Minerals is in advanced discussions with potential offtake buyers in Europe and the U.S. for its Colossus mine in Brazil's Minas Gerais state, CEO Rafael Moreno told Reuters, adding that the company was not pursuing Chinese interest.
Viridis on Thursday inaugurated its rare earth research and processing center in Pocos de Caldas as it prepares the project to hit steady-state production by the end of 2028,
Moreno said. The facility will produce the mine's first mixed rare earth carbonate, containing minerals such as neodymium and terbium, among others, and help ease offtake negotiations with buyers, he said.
The center's opening comes amid a global scramble for rare earths and critical minerals as governments in Europe and the U.S. try to reduce their dependence on China for the materials, which are vital for electric cars and defense systems.
While Viridis has received global interest from offtakers - buyers who commit to purchasing specified volumes over time - the company will work exclusively with Western buyers, despite strong Chinese interest, the CEO added.
"We took a stance pretty early on to go down the Western route. As diversification of supply chains occurs, we believe we'll get better value for our products versus the suppression of prices that China is able to do when all the product goes there," Moreno said on Wednesday, adding discussions with investors and lenders have focused on the project remaining outside of Chinese supply chains.
China accounts for 60% of global mine production and 90% or more of refined production of rare earths. Beijing introduced export restrictions in April 2025 in response to U.S. tariffs and has repeatedly defended the measures, saying it approves eligible requests.
Colossus is Viridis' first project in Brazil, though the company also operates in Australia and Canada. The center is expected to process up to 100 kilograms of ore per hour.
The project is expected to cost $360 million to $370 million, Moreno said, adding that the investment could increase to $400 million if lenders request Viridis hold additional working capital. Project financing is expected to be completed in the third quarter, he added.
(Reporting by Oliver GriffinEditing by Rod Nickel)
