Viridis Mining & Minerals (ASX: VMM) and partner Ionic Rare Earths (ASX: IXR) have moved to capture the value associated with the downstream processing of rare earths by creating a new entity to produce a refined rare earths product.
The partners have created a new entity to be known as “Viridion” that will commercialise two innovative technologies and deliver on its rare earths refinery and magnet manufacturing and recycling goals.
The two companies revealed the JV back in April and have now settled upon the new entity’s moniker, with it to be known as Viridion Pty Ltd in Australia and Viridion Rare Earth Technologies Ltda in Brazil.
The trailblazing link-up will place Viridion at the front of the queue to become the first producer of refined rare earth oxides from a mixed rare earth carbonate (MREC) or from the recycling of spent magnets, using Ionic’s new-age technology.
The 50:50 owned JV is planning to commercialise Ionic’s “Selective Separation Technology” (SST) that is used for downstream processing and its “Rare Earth Recycling Technology” (RRT), designed to recycle spent magnets from electric motors and other industrial applications.
The SST technology that has been developed and proven at Ionic’s Belfast facility in the UK allows for separation of all 17 rare earth elements into their oxide form directly from a rare earth carbonate, which will enable end users to specify their individual orders for rare earth oxides from a single feed.
Viridion is planning to kick-off a scoping study for its rare earth oxides refinery and magnet recycling facilities early next year once it has produced a quantity of MREC from a composite sample sourced from the company’s Southern concessions at the promising Colossus project in Minas Gerais in south-eastern Brazil.
The new entity recently signed a memorandum of understanding (MOU) with the SENAI/FIEMG Innovation and Technology centre of Minas Gerais, the owner and operator of Lab Fab. The two parties will look to develop rare earth magnets at the Lab Fab facility in Lagoa Santa, Belo Horizonte.
Viridion is ideally placed to be the only local source of the oxide feedstock to Lab Fab and in combination with Viridis, to develop a fully integrated domestic rare earths supply chain within the South American nation.
With the Colossus Project now firmly established as one of the leading rare earth projects worldwide, the opportunity to leverage Ionic’s trialled and proven technology and create a circular mine to magnet supply chain is a vital advantage for Viridion, as it looks to capitalise on the burgeoning supply chain that is developing in Brazil and more broadly South America.
Viridis Mining & Minerals CEO Rafael Moreno
Management says Viridion is currently assessing potential sites that can support pilot plants for both its refinery and magnet recycling arms and is completing the relevant evaluations to enable it to home-in on its preferred option shortly.
Whilst the plan is for Viridion to build its own full-scale separation plant in Brazil, it will also hold exclusive rights to commercialise the SST technology globally (except for Uganda and Asia).
The company can seek out other rare earths producers outside of Brazil and look for licensing partnerships that can provide a worthwhile commercial return. It says discussions have taken place with potential partners that have their own rare earths deposits.
Viridion is looking to become the first company to provide an integrated rare earths supply chain outside of China and just may have the technology and product to achieve its goal.
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