Viridis Mining and Minerals Ltd. has signed its first major execution contract, securing a dedicated power transmission infrastructure for its Colossus rare earth project in Brazil.
The contract was signed with municipal electricity distributor DME and secures the licensing, engineering, procurement, and construction of a 3.2-kilometre, 138kV high-voltage transmission line. The line will connect the Colossus project directly to the nearby Saturnino Substation.
The agreement also locks in an initial reserved power allocation of 27 megawatts (MW) to support Stage 1 operations, with grid capacity guaranteed from December 2027. This timeline aligns with Viridis’ development schedule, targeting first production of mixed rare earth carbonate (MREC) in the first half of 2028.
DME will deliver the infrastructure under a fully integrated, turnkey model. This setup provides Viridis with a single accountable counterparty for all permitting, engineering, and energisation, which materially lowers execution and interface risks.
The fixed-price connection works package is valued at approximately 3.97 million Brazil real, shielding the company from construction cost escalations.
Importantly, the transmission line and associated substation infrastructure are being designed with a total capacity of up to 90MVA. This high capacity provides a clear, cost-effective pathway for future project expansions without requiring further major grid investment.
DME has already commenced procurement for critical, long-lead electrical items to mitigate supply-chain bottlenecks.
Viridis Managing Director Rafael Moreno said the agreement is a crucial building block toward construction readiness, especially given that roughly 90 per cent of Brazil’s electricity grid is powered by sustainable sources.
“The execution of this agreement marks an important milestone for Viridis as we formally transition from project development into project execution,” Moreno said.
“The infrastructure is being designed with capacity well beyond our initial requirements, providing a clear pathway for future expansion as Colossus continues to grow.
“Together with ongoing project financing, EPCM selection and procurement activities, including tenders already received for all key facility and electrical infrastructure, Viridis continues to systematically de-risk the Colossus project and strengthen its pathway toward a targeted FID in H2 2026 and first production in H1 2028.”
