Solvay signs offtake for 70% of Viridis’ planned magnetic rare-earth capacity
Shipments from Brazil to La Rochelle are expected in 2028 under an initial term through 2034, while pricing and annual tonnage remain undisclosed.
Theo Marchetti
Solvay SA EBRSOLB signed an offtake with ASX-listed Viridis Mining and Minerals Limited ASXVMM on Wednesday for about 70 per cent of Colossus’ anticipated magnetic rare-earth production capacity. Shipments from Brazil to France are expected to begin in 2028, under an initial term running through 2034.
The Nov. 4 agreement gives Viridis a committed customer for most of that anticipated capacity as it works to complete project financing. Solvay also holds a right of first offer on the remaining production, which does not itself commit the buyer to purchase that balance.
On Wednesday, Viridis shares rose 1.48 per cent to A$3.42 on the ASX at 4:11 p.m. AEDT, according to Google Finance’s ASXVMM page. Solvay traded at €24.14 in Brussels, up 2.90 per cent at 2:26 p.m. CET on Wednesday, according to its EBRSOLB quote page.
The announcement does not disclose annual contracted tonnage, a price formula, take-or-pay provisions or detailed delivery conditions. It describes minimum committed volumes for neodymium, praseodymium, dysprosium and terbium, rather than a purchase commitment for all output.
A Binding Agreement Replaces The Letter Of Intent
Viridis is developing Colossus in Brazil’s Poços de Caldas region. Solvay will receive mixed rare-earth feedstock at its La Rochelle separation and purification facility, where it plans to turn the material into individual high-purity oxides and formulations.
The signed supply agreement follows the companies’ June 1 letter of intent, which left definitive documentation and other conditions outstanding. Technology licensing and technical support for Viridis to produce upgraded carbonate remain under a separately contemplated agreement, according to the November announcement.
“Securing a binding long-term agreement with one of the world’s leading rare earth separation groups provides us with a clear route to global markets, and supports the finalisation of project financing as we advance towards production in 2028,” the Nov. 4 release said.
The feedstock will also contain samarium, gadolinium and yttrium. Solvay says the separated materials serve permanent magnets and applications including electric mobility, renewable energy, electronics and medical equipment.
Project Debt Remains To Be Secured
Viridis’ Oct. 27 quarterly report described senior project debt financing as progressing through its final stages. It reported A$119.7 million in cash at Sept. 30 against a feasibility-study development capital requirement of US$449 million.
The report said strategic equity commitments of up to approximately US$120 million fully addressed the project’s equity funding requirement. Commitments and conditional investments remain distinct from the quarter-end cash balance.
The August feasibility study, summarized in that report, forecasts average annual magnetic rare-earth oxide production of 2,967 tonnes. Its spot-price case used July 23 assumptions, including US$129 per kilogram for neodymium-praseodymium, rather than a disclosed price under the Solvay contract.
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The dated supply milestone is 2028, when shipments to La Rochelle are expected to begin. The November announcement gives no firmer first-delivery date or deadline for completing the separate technology agreement.
