Australian mining firm Viridis Mining and Minerals is deliberately bypassing interest from Chinese firms, opting instead to secure purchasing agreements exclusively with Western buyers for its high-profile Colossus rare earth mine in Brazil.
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CEO Rafael Moreno confirmed that the company is currently in advanced talks with potential clients in Europe and the United States. The strategic pivot reflects a broader geopolitical effort by Western nations to decouple from China’s dominant rare earth supply chain.
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Bypassing China’s Price Controls
The race to lock in non-Chinese sources of critical minerals has intensified, especially after Beijing imposed export limits on rare earths following clashes over U.S. tariffs. Currently, China controls roughly 60% of global rare earth mining and upwards of 90% of its refining. These elements are essential for manufacturing defense systems and electric vehicle batteries.
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Despite substantial interest from Chinese corporations, Moreno stated that Viridis made an intentional decision early on to establish an exclusively Western supply chain. He noted that diversifying into Western markets would protect the project from the artificial price suppression China historically applies when it monopolizes a resource. Both lenders and investors have heavily supported the move to keep the project independent of Chinese influence.
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Milestone Reached in Brazil
The announcement coincided with Viridis officially opening its new research and processing facility in Poços de Caldas, located in Brazil’s Minas Gerais state. The center represents a major operational leap, capable of refining up to 100 kilograms of raw ore per hour.
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The facility will produce the mine’s very first batches of mixed rare earth carbonate—a compound containing highly sought-after elements like neodymium and terbium. Having a physical product on hand is expected to significantly accelerate final negotiations with U.S. and European buyers.
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Timeline and Financing
The Colossus project—which represents Viridis’ first venture into Brazil alongside existing operations in Canada and Australia—is on track to hit steady, full-scale production by late 2028.
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The total cost of the venture is estimated to be between $360 million and $370 million, though that figure could reach $400 million depending on additional working capital requirements from creditors. Viridis anticipates wrapping up its final project financing by the third quarter of this year.
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