Viridis advances licensing process for Brazil rare earths project

Australian exploration company Viridis Mining and Minerals submitted to local authorities the environmental impact studies for its Colossus rare earths project in Brazil’s Minas Gerais state.

The company submitted an environmental impact assessment (EIA) and environmental impact report (RIMA) as part of its application for a preliminary license, the first of a three-step environmental approval process in the state, Viridis said in a statement.

"The submission of the EIA/RIMA reports has been a mammoth undertaking and the culmination of eight months of thorough environmental assessment, including fieldwork to assess and collect flora, fauna, water, air quality, noise, and vibration measurements, plus comprehensive community surveys, dynamic modeling, and engineering studies," the company said.

The EIA was prepared by consultancy firm Clam Ambiente with the support of Alger Consultoria.

Minas Gerais is considered a mining hub, with iron ore and lithium operations, among others.

"The business environment for mining in Brazil is very good, and I would classify the state of Minas Gerais as having an even more favorable business environment, especially due to the expertise and familiarity that local authorities have with mining projects," John Prineas, executive chairman of Australia-listed exploration firm St. George Mining, which is developing the Araxá niobium-rare earths project in Minas Gerais, told BNamericas. 

The familiarity of state authorities with the sector means faster licensing procedures compared to other states, he said.

Next steps

The Colossus licensing process involves three stages under state regulations: the preliminary license (PL), the installation license (IL) and the operating license (OL).

"The PL submission was completed as per the Colossus development timeline, reflecting the company’s commitment to adhering to its development schedule. This milestone keeps the Colossus project on track to achieve subsequent licensing stages, ensuring operations can commence as planned by the end of 2027. This timely progress underscores the project’s robust planning and alignment with regulatory requirements," Viridis said.

Following the submission of the EIA/RIMA for the preliminary environmental license, Viridis said it is progressing several key initiatives to advance the Colossus project, including scoping study finalization; progress of a prefeasibility study with Hatch, which is on track to be completed by the end of the second quarter; and continued focus on project financing and offtake discussions with stakeholders.

At the start of 2024, Viridis signed a protocol of intent with Minas Gerais state, then announced a plan to invest 1.35bn reais (US$228mn) in the Colossus project.