Australian Miner Will Sell Brazil Rare Earths to West, Not to China
BRAZIL · MINING · CRITICAL MINERALS
Key Facts
—The headline: Australian-listed miner Viridis Mining and Minerals will sell rare earths from its Colossus project in Minas Gerais only to Western buyers, the CEO told InfoMoney, reshaping the Brazilian rare earths supply chain.
—The project: Viridis inaugurated on May 28 a processing center in Poços de Caldas, presented as one of the largest Western-side facilities for ionic clay rare earths.
—The market: China accounts for 60 percent of global mined rare earths and over 90 percent of refined output, giving Beijing structural pricing power that Viridis says it wants to bypass.
—The Brazil context: Brazil holds the world’s second-largest rare earth reserves but produced only 20 tons in 2024 of 390,000 tons globally, due in part to scarce project financing.
—Latin American impact: A Western-oriented Brazilian rare earths supply chain repositions the country as a strategic supplier to United States and European critical-minerals strategies.
A new chapter of the Brazilian rare earths supply chain opened in Poços de Caldas this week. Australian-listed Viridis Mining and Minerals inaugurated a research and processing center on Thursday, with chief executive Rafael Moreno telling investors the company will sell only to Western customers despite strong Chinese interest. The choice sets a course at odds with prevailing global trade flows for critical minerals.
Where the Brazilian rare earths supply chain stands
Brazil holds the world’s second-largest rare earth reserves after China. The country has the geology, with significant ionic-clay deposits across Minas Gerais and Goiás states. What Brazil has lacked, until very recently, is the processing capacity and the financing to convert reserves into output.
The output gap is large. Brazilian government data show the country produced just 20 tons of rare earth elements in 2024 out of a global total of 390,000 tons. Industry executives blame scarce financing and lengthy permitting more than geology.
Investments are now flowing. Brazilian mining association Ibram projects rare-earth exploration investment will rise 10 percent between 2026 and 2030 versus the prior five years. United States interest has accelerated, with the planned 2.8 billion dollar acquisition of producer Serra Verde by US Rare Earth a watershed transaction.
The Viridis bet on the Brazilian rare earths supply chain
Viridis Mining and Minerals trades on the Australian Securities Exchange under VMM. The company holds the Colossus Rare Earth Project in Poços de Caldas in southern Minas Gerais. Drilling at the Cupim South and Centro Sul prospects has shown grades up to 15,339 parts per million total rare earth oxides, with consistent zones above 4,500 ppm.
The new facility inaugurated on May 28 is positioned as a Western-side processing hub. Company executives described the unit as one of the largest in the West for ionic-clay rare-earth processing. The plan is to expand it toward downstream chemical separation, eventually producing carbonate and then separated oxides on site.
Viridis secured the state-level Preliminary Environmental License from Minas Gerais authorities. The next step is the Installation License. The board targets a final investment decision in the second half of 2026, with first operations planned for 2028 on a mine life shaped around higher-grade zones.
Why the CEO is keeping China out
Moreno told InfoMoney the company has fielded global buyer interest including from Chinese counterparties. The choice to work only with Western buyers is positioned as a commercial one as much as a geopolitical one. The argument is that supply-chain diversification commands a premium over the pricing power Chinese refiners can exert when output is concentrated there.
China dominates the industry. Beijing-headquartered firms account for 60 percent of global mined rare earths and over 90 percent of refined production. The structural position has let China set effective benchmark prices and use export controls as a trade lever, including on heavy rare earths in 2024 and 2025.
Discussions with investors and financiers have centered on keeping the project outside Chinese supply chains. The framing aligns Viridis with United States Department of Defense and European Critical Raw Materials Act sourcing priorities, both of which seek to fund non-Chinese capacity in friendly jurisdictions.
Who is building the Western alternative
Viridis is one of three Brazil-focused names in the Western critical-minerals push. Serra Verde, controlled by United States investors, operates the Pela Ema project in Minaçu, Goiás. It is currently Brazil’s only commercial rare-earth producer and is the target of the US Rare Earth deal.
Aclara Resources, listed in Toronto, also operates in Goiás. Its CEO Ramon Costa has cited the breakthrough in United States trade talks with Brazil as a potential unlock for sector financing. The United States chargé d’affaires in Brazil Gabriel Escobar met with several mining companies at the Exposibram event in 2025, signaling Washington’s engagement.
Viridis strengthened its board on May 1 by naming Geoff Bedford as non-executive director. Bedford previously led Neo Performance Materials and Molycorp, and helped oversee the Mountain Pass operation in California. Chief executive Rafael Moreno reports to chairman Agha Shahzad Pervez.
Regional read on the Brazilian rare earths supply chain
For Latin America the Viridis policy carries weight beyond one project. A Brazilian rare-earth corridor anchored on Western buyers complements existing critical-minerals strategies in Chile and Argentina around copper and lithium. The three together cover most of the inputs needed for electrification and defense supply chains.
The geopolitics cuts both ways. Brazilian President Luiz Inácio Lula da Silva has cultivated balanced relations with both Washington and Beijing, so a private-sector Brazilian rare-earth supply chain oriented toward the West does not automatically reflect federal policy. It does, however, lock in commercial commitments that are hard to reverse.
Investor takeaways are positive. Analyst coverage of the ASX listing has trended higher on the back of the Preliminary License, the board strengthening and the inauguration of the processing facility. The Final Investment Decision later this year will be the next major milestone for Brazilian rare earths.
Frequently Asked Questions
What is Viridis Mining and Minerals?
Viridis is an Australian-listed miner trading on the Australian Securities Exchange under the ticker VMM. It owns the Colossus Rare Earth Project in Poços de Caldas in southern Minas Gerais. Chief executive is Rafael Moreno and chairman is Agha Shahzad Pervez.
Why won’t Viridis sell to Chinese buyers?
The CEO told InfoMoney the company prioritizes Western buyers because supply-chain diversification commands a premium over what he described as the price suppression that Chinese refiners can exert when output is concentrated there.
How big is Brazil’s rare earths reserve base?
Brazil holds the world’s second-largest reserves of rare earth elements after China. The country produced only 20 tons in 2024 out of 390,000 tons globally, mainly because of financing constraints and lengthy permitting cycles.
When does Colossus reach final investment decision?
Viridis is targeting a final investment decision in the second half of 2026. First operations are planned for 2028 once the Installation License is secured and project financing is closed.
Who else is mining rare earths in Brazil?
Serra Verde in Minaçu, Goiás is Brazil’s only commercial producer to date and is the target of a 2.8 billion dollar acquisition by US Rare Earth. Aclara Resources, listed in Toronto, also operates in Goiás. Viridis is the most advanced Minas Gerais project.
Connected Coverage
For the wider Brazil-US economic frame, see our piece on the USMCA bilateral review. Also read our coverage of the Petrobras-Suriname energy partnership and the five-country South American security pact.
The Rio Times — Friday, May 29, 2026 — 04:00 BRT — By Sofia Gabriela Martinez
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