ASX-listed rare earths developer Viridis Mining and Minerals has secured its first major project execution contract with Minas Gerais-based electricity distributor DME Energética for the delivery of dedicated power transmission infrastructure required for the Colossus rare earths project.

The binding agreement with DME secures the critical electrical infrastructure required to connect Colossus to the grid and includes the licensing, engineering, procurement and construction of a 3.2-km-long 138 kV transmission connection from the Saturnino substation to the project, together with an initial reserved power allocation of 27 MW to support Stage 1 operations.

The reserved grid capacity is effective from December 2027 to align with the company's development schedule to start production in the first half of 2028.

Securing dedicated power infrastructure in Brazil, where about 90% of energy is generated from sustainable sources, is a critical requirement for any mining project.

DME will provide a fully integrated turnkey delivery solution for the transmission infrastructure, which materially reduces execution and interface risk for Viridis through a single accountable counterparty responsible for permitting, engineering, procurement, construction and energisation.

Importantly, the transmission line and associated substation infrastructure are being designed with a capacity of up to 90 MVA, providing a clear pathway for future project expansion without the need for significant additional grid infrastructure investment.

The fixed-price connection works package is valued at about $800 000 to be paid across the delivery phase of the scope delivery, which provides cost certainty for Viridis and reduces exposure to engineering and construction cost escalation.

DME has already started procurement for long-lead electrical equipment that will be required, while Viridis has received tenders for key electrical infrastructure packages such as power transformers, electrical switch rooms and associated process plant infrastructure.

Viridis also continues to accelerate other execution activities ahead of a final investment decision (FID) on Colossus.

"The transmission connection agreement represents another significant project execution milestone and, together with first mixed rare earth carbonate production from our large-scale demonstration plant and the recently announced strategic offtake and technical partnership with Solvay, further derisks the Colossus project and supports a targeted pathway towards a FID during the second half of the year," says Viridis MD Rafael Moreno.

He adds that the agreement with DME provides for capacity well beyond Colossus' initial requirements, which provides a clear pathway for future expansion.

Viridis expects to secure more major project execution packages in the coming months.