A Game-Changer for REE Exploration in Latin America
Credit: File
Brazil is stepping into the spotlight of the global rare earths race. In a major development, Viridis Mining & Minerals announced yesterday that its Colossus project in Minas Gerais holds an estimated 200 million tonnes of ore. This discovery doesn’t just highlight Brazil’s resource potential—it could redefine Latin America’s role in the clean energy transition, offering the world a strong counterbalance to China’s long-standing dominance in the field.
The deposit grades 2,640 ppm of total rare earth oxides (TREOs), including 740 ppm of magnet rare earth oxides (MREOs)—the critical ingredients for permanent magnets in electric vehicles and wind turbines. This expands the project’s mine life from two decades to an estimated 40 years.
What Sets Colossus Apart
Credit: File
Colossus isn’t a remote project with speculative numbers—it’s a mature deposit with tight economics. Viridis’s prefeasibility study valued the project at US$1.41 billion pre-tax, supported by shallow open pits and a low strip ratio. It also benefits from rare earth recoveries that rival global leaders.
The project’s technical strength shines through in its high recoveries—up to 67% for key magnet-grade elements such as neodymium and praseodymium. That performance positions Colossus as one of the best in global rare earth recovery.
Strategic Mineral Momentum Builds
Brazil ranks just behind China and Vietnam in rare earth reserves, yet its vast deposits remain largely untapped. The country currently contributes a mere 0.2% to global REEs production but holds nearly 20% of world reserves.
The signing of Brazil’s National Mining Plan earlier this year categorized REEs as “strategic minerals,” underlining the government’s intent to build a homegrown industry. Mineração Serra Verde, the nation’s first REEs mine, is now producing concentrate for export.
To deepen the value chain, a consortium known as Magbras is piloting Brazil’s first integrated rare earths value chain—from extraction to magnet manufacturing—through a demonstration facility.
Global Pressure and Brazil’s Rising Role
Image courtesy of Serra Verde Group
Internationally, rare earths are in the spotlight. China’s dominance—providing roughly 80% of global refining capacity—has placed the world on edge, given the essential nature of these minerals in everything from EVs to defense systems.
Celestial disruption is accelerating moves away from Chinese supply chains, and Viridis’s Colossus project arrives at the right moment.
Strengthening Brazil’s momentum, the U.S.-backed Minerals Security Partnership (MSP) has recently channelled new funding into the Serra Verde project, complementing investments already driven by the country’s strategic minerals fund.
Latin America Taps Into Renewables Demand
Global demand for rare earths—particularly for light and magnet-grade elements—is climbing. Wood Mackenzie has forecast an increase from 171,300 tonnes in 2022 to nearly 240,000 tonnes by 2030. Brazil is positioned to play a larger role.
Yet Latin America currently receives just a sliver of exploration funding — only about 7% of global investment in REE projects. Ramping up geoscientific programs and capital inflows will be essential for catch-up momentum.
A Smarter Future Behind Brazil’s Doorsteps
Challenges persist. According to lenders and backers, depressed market prices, technical difficulties in processing, and regulatory red tape continue to slow progress. Some Brazilian projects, like Serra Verde, took over a decade to reach production.
Still, Colossus appears different. With strong metallurgy, government backing through institutions like BNDES and FINEP, and collaboration with Australian experts Ionic Rare Earths via Viridion JV, it emerges as a beacon of potential.
Importantly, a recycling facility—Poços de Caldas’s CRITR hub—has been approved to process new and recycled rare-earth materials. It stands as a rare example of vertical integration and circular supply chain development in Latin America.
What Comes Next?
| Pillar | What to Watch |
| Permitting | Early approvals for Colossus drilling and refinery |
| Financing | BNDES/FINEP’s next tranche to accelerate development |
| Offtake | Agreements from EV and magnet producers |
| Technology | Continued success in recovery and recycling efficiencies |
| Market | Global rare earth prices and supply chain shifts |
Final Word
Colossus gives Brazil and Latin America a tangible shot at breaking into the rare-earths arena—and creating a non-China supply path for critical magnets used globally. It’s more than a mining project—it’s a signal of shifting power in strategic minerals.
Whether the world seizes this opportunity will depend not just on geology, but on skilled execution, smart financing, and the politics of supply security. For now, Brazil has positioned itself at the negotiation table.
