Viridis Mining and Minerals (ASX: VMM) has submitted an Installation Licence application for the Colossus rare earth project in Minas Gerais, Brazil, advancing the 493-million-tonne ionic clay deposit toward a Final Investment Decision (FID) targeted for the second half of 2026.
The IL application follows approval of the Preliminary Licence in late 2025 and represents the critical permitting step that, if granted by Brazilian authorities, allows construction and site development to begin. First production remains targeted for 2028.
Colossus Rare Earth Project: Brazil’s Permitting Sequence
Brazil’s environmental and mining licensing framework requires sequential approvals before construction can proceed. The Preliminary Licence — granted to Colossus in late 2025 — confirmed the project’s environmental viability in principle. The Installation Licence now under review is the next formal gate, authorising physical site development and construction activity upon approval.
Viridis has not confirmed an IL approval timeline. The FID remains a target for H2 2026, contingent on IL grant, financing close, and offtake progress. All three workstreams are described as active but none is complete.
Scale and Strategic Context: The Colossus Rare Earth Project Resource
The Colossus rare earth project hosts a resource of 493 million tonnes grading 2,508 ppm total rare earth oxide (TREO), with a reserve of 200.6 million tonnes. The magnet rare earth oxide (MREO) grade — comprising neodymium, praseodymium, dysprosium, and terbium — stands at 601 ppm. Viridis describes Colossus as the world’s largest undeveloped ionic adsorption clay rare earth deposit outside China.
Dysprosium and terbium are the project’s highest-value heavy rare earth targets. Dysprosium traded at $220.93/kg domestic China in April 2026, while terbium reached $970.18/kg over the same period, according to Shanghai Metals Market (SMM) data — both up sharply month-on-month. Ionic adsorption clay deposits carry a processing cost advantage over hard-rock sources, which underpins the economic case for Colossus at current price levels.
China controls approximately 90% of global rare earth processing capacity. Western demand for non-Chinese heavy rare earth supply — particularly for NdFeB magnet production in EV drivetrains and wind turbine generators — has driven sustained interest in large-scale ionic clay projects outside Chinese jurisdiction.
Parallel Workstreams and Downstream Ambition
Alongside the IL application, Viridis is progressing EPCM contractor selection, demonstration-scale magnet rare earth carbonate (MREC) production, financing discussions, and offtake negotiations simultaneously. The company has received Letters of Support from Export Development Canada (EDC) and France’s Bpifrance, and Colossus has been selected for Brazil’s Climate and Ecological Transformation Investment Platform.
On the downstream side, Viridis holds a 50/50 joint venture — branded Viridion — with Ionic Rare Earths Limited, targeting rare earth separation, refining, and recycling capacity within Brazil. The arrangement is designed to retain value-add processing in-country rather than exporting oxide or carbonate to third-party refiners.
For a full overview of Viridis Mining’s asset base, corporate structure, and project timeline, see the Viridis Mining company profile.
What to Watch
The IL approval timeline from Brazilian authorities is the immediate variable. Any delay extends the window to FID and pushes the 2028 production target. On the commercial side, offtake announcements — particularly any agreement with a Japanese, European, or US end-user — would materially de-risk the financing close. The H2 2026 FID decision will be the definitive signal on whether Colossus moves to construction this cycle or slips into 2027.
Price data sourced from Shanghai Metals Market (SMM). Production and resource data sourced from Viridis Mining ASX announcements. Additional context from the USGS National Minerals Information Center.
What is the Colossus rare earth project?
The Colossus rare earth project is an ionic adsorption clay (IAC) rare earth deposit located in Poços de Caldas, Minas Gerais, Brazil, developed by Viridis Mining and Minerals (ASX: VMM). It hosts a resource of 493 million tonnes grading 2,508 ppm TREO and is described as the world’s largest undeveloped ionic clay rare earth deposit outside China, with first production targeted for 2028.
What is an Installation Licence in Brazil’s mining permitting process?
In Brazil’s sequential environmental licensing framework, the Installation Licence (IL) is the permit that authorises a project to begin physical construction and site development. It follows the Preliminary Licence — which confirms environmental viability in principle — and must be granted before a Final Investment Decision can be executed and construction formally commenced.
What rare earth elements does Colossus target?
Colossus targets magnet rare earth elements (MREO), primarily neodymium, praseodymium, dysprosium, and terbium. The deposit grades 601 ppm MREO. Dysprosium and terbium are the highest-value targets, with dysprosium trading at $220.93/kg and terbium at $970.18/kg on the domestic China market in April 2026, per SMM data.
What is the Viridion joint venture?
Viridion is a 50/50 joint venture between Viridis Mining and Minerals and Ionic Rare Earths Limited. It is designed to establish rare earth separation, refining, and recycling capacity within Brazil, with the objective of retaining downstream value-add processing in-country rather than exporting feedstock to external refiners.
When will the Colossus project reach a Final Investment Decision?
Viridis Mining has targeted a Final Investment Decision for the second half of 2026. The FID is contingent on Installation Licence approval from Brazilian authorities, completion of financing arrangements — for which Letters of Support have been received from Canada’s EDC and France’s Bpifrance — and progress on offtake negotiations. None of these workstreams has been confirmed as complete as of May 2026.
