Brazil selects Viridis for slice of $1.37B | Australian Markets

ASX-listed Viridis Mining & Minerals has landed a main financial coup by being chosen for a slice of Brazil’s R$5 billion (A$1.37 billion) strategic minerals funding program geared toward fast-tracking the nation’s clean vitality transition.

The company’s flagship Colossus uncommon earths project in Brazil’s Minas Gerais area, along with related refining and recycling services, will obtain assist beneath a prestigious authorities company initiative.

The Brazilian National Bank for Economic and Social Development (BNDES) and the nation’s Federal Agency for Funding Authority for Studies and Projects (FINEP) have teamed up in a joint scheme to invest in key energy-transition supplies, reminiscent of uncommon earths and everlasting magnets.

Viridis says its choice marks a large vote of confidence within the company, because it pushes to construct the world’s first absolutely built-in uncommon earths provide chain exterior of China.

Management is now gearing up to lock within the deal, with funding set to movement by a combine of grants, debt and, presumably, a strategic equity slice.

We are delighted to have been chosen by BNDES and FINEP for funding assist beneath Brazil’s strategic minerals initiative. This recognition affirms not solely the technical and industrial power of the Colossus project and our downstream capabilities but in addition highlights Viridis’ growing function within the world uncommon earths provide chain.

As China tightens the screws on uncommon earth exports, placing world provide chains on edge, Viridis’ funding news seems notably effectively timed.

Through its three way partnership (JV) entity with fellow listed companion Ionic Rare Earths – dubbed Viridion – Viridian hit a main milestone in May when it produced its first batch of recycled high-purity neodymium, praseodymium, dysprosium and terbium oxides.

The JV was established to analyze choices for in-country magnet metals recycling.

The materials was delivered for testing to the not-for-profit FIEMG’s Innovation and Technology Centre of Minas Gerais (CIT SENAI) in Lagoa Santa metropolis. The centre’s Lab Fab facility is the primary of its sort in Latin America.

The oxides, that are very important ingredients for everlasting magnets, have been recovered from previous magnets and wind generators in Brazil utilizing cutting-edge technology developed at Ionic’s Belfast facility.

In addition to the initial R$5B program, Brazil unleashed a second R$3B (A$542M) conflict chest to focus on downstream technology and innovation hubs to help the nation’s efforts with the vitality transition and decarbonisation.

Having ticked the box with profitable oxide deliveries, Viridis says Viridion is well-positioned to faucet into this subsequent wave of authorities assist.

Viridis Mining is using high after unveiling a blockbuster scoping examine in February for its Colossus uncommon earths project in Brazil, forecasting a whopping US$2.28 billion (A$3.59B) in EBITDA over a 20-year mine life.

The lion’s share of the annual US$114 million (A$180M) EBITDA will come from neodymium and praseodymium manufacturing, utilizing spot costs of about US$60 per kilogram.

Operating prices at Colossus are projected to come back in at simply US$6/kg of complete uncommon earth parts, resulting in what Viridis believes may develop into one of the lowest-cost uncommon earth operations on the planet.

As effectively as internet hosting a sizeable neodymium-praseodymium useful resource, Colossus additionally comprises the world’s highest measured and indicated grades of dysprosium and terbium of any present ionic clay deposits.

The examine quietly revealed plans to churn out 146 tonnes of these heavy hitters yearly for the primary 5 years, and 156 tonnes every year afterafter.

The deposit can be stacked with 6285t samarium, 4125t gadolinium and 13,553t yttrium, that are all included on China’s banned listing.

Meanwhile, the company is advancing a pre-feasibility examine with engineering firm Hatch, because of be accomplished this quarter, and dealing to secure key environmental licences and offtake agreements.

For Viridis, the backing from BNDES and FINEP places it in rarefied company. Meteoric Resources and Ionic are the one two different Australian corporations to get the nod for the Brazilian funding.

As the worldwide hunt for vital minerals heats up, Viridis seems to be shaping up as a severe contender to redraw the uncommon earths provide chain, with Colossus fast rising because the jewel in its crown.

With authorities backing, world-class grades and ultra-low working prices, the company is gaining actual traction in its mission to produce the metals that drive EVs, wind vitality and next-generation defence technology.

Is your ASX-listed company doing one thing fascinating? Contact: matt.birney@wanews.com.au