Viridis Mining and Minerals has secured a significant milestone in its quest to establish a leading rare earths project in Brazil. The company received a letter of support from France’s Bpifrance export credit agency for its Colossus project, affirming its eligibility for the French Government’s Garantie de Prêt Stratégique (GPS) financing program. This backing signals a major step forward, as the GPS initiative is designed to bolster critical industrial projects while enhancing Western control over essential supply chains.
The GPS program will facilitate a portion of senior bank debt, potentially covering up to 50 percent of long-term financing based on French offtake participation. This arrangement ensures that the loan ranks equally with other lenders, effectively integrating France into the project’s financial framework. Viridis aims to combine government-backed financing with substantial contributions from institutional investors, and securing the GPS guarantee has been a top priority for the company for several months.
The endorsement from Bpifrance may lead to access to more affordable bank debt, reducing financial risk and easing the pathway to securing the necessary capital for the Colossus project. This development follows a series of achievements for the Perth-based company, which earlier this year received financial support from Brazil’s National Bank for Economic and Social Development (BNDES) and the Federal Agency for Funding Authority for Studies and Projects (FINEP). Additionally, Brazilian investment firms ORE Investments and Régia Capital contributed US$30 million (approximately A$46 million) through staged placements.
If the blend of government support and private investment materializes as planned, Viridis expects to advance the Colossus project towards a final investment decision and initiate early development. The project is currently entering a due diligence phase with Bpifrance, focusing on the technical, financial, and credit aspects of Colossus. Upon completion, the project will progress towards formal approval under the sovereign lending program.
Located in Brazil’s mineral-rich Poços de Caldas region, the Colossus project hosts one of the highest-grade ionic adsorption rare earths deposits outside China. Access to strategic rare earths has become increasingly critical, particularly after China, which supplies nearly 80 percent of the global market, imposed an export ban on these minerals.
In February, Viridis unveiled a comprehensive scoping study, projecting an impressive US$2.28 billion (around A$3.50 billion) in EBITDA over a 20-year mine life. The majority of this annual EBITDA, estimated at US$114 million (approximately A$180 million), is expected to derive from the production of neodymium and praseodymium, with spot prices around US$60 per kilogram. Operating costs are projected at just US$6 per kilogram of total rare earth elements, positioning Colossus as one of the lowest-cost rare earth operations globally.
In addition to its notable neodymium and praseodymium resources, Colossus contains the highest measured and indicated grades of dysprosium and terbium among current ionic clay deposits. The scoping study indicates plans to produce 146 tonnes of dysprosium and terbium annually for the first five years, increasing to 156 tonnes each subsequent year. The deposit also contains significant quantities of samarium, gadolinium, and yttrium, which are included on China’s export ban list.
As global supply chains face geopolitical challenges, the Colossus project emerges as a vital source of strategic minerals. Viridis is advancing in several critical areas. An environmental impact assessment submitted in January is expected to yield a preliminary license soon, clearing a major regulatory hurdle. Meanwhile, drilling operations are ongoing across multiple deposits to upgrade resources to the measured and proven categories.
On the development front, plans are underway for a state-of-the-art rare earths research and processing centre, which will feature a demonstration plant for mixed rare earths carbonate, anticipated to begin operations by early 2026. Engineering firm Hatch is also progressing with the definitive feasibility study, set for completion by mid-2026, keeping Viridis on track to meet its target for a final investment decision in the third quarter of next year.
With strong backing from French and Brazilian agencies, along with support from institutional investors and Hatch driving the feasibility study, the Colossus project is positioned to transition from exploration to production. If all goes according to plan, Viridis is poised to emerge as a key player in the global race for rare earths.
