Brazilian courts in the town of Teófilo Otoni have allegedly ordered the suspension of Sigma Lithium Corp.’s environmental permits and mining at the Grota do Cirilo lithium mine. According to Reuters, a civil suit was brought by the Federation of Quilombola Communities of Minas Gerais, in which the group said Sigma’s project was within the direct area of influence of the Bau Quilombola Community, triggering stricter obligations and procedures.
Sigma responded to the allegations on Sept 7, saying that the company had not received any legal communications regarding a preliminary judicial ruling issued without due process, allegedly suspending its environmental licenses.
“The company believes this ruling is unwarranted and in dissonance with Brazil’s strong rule of law, as due process has not been followed. The company has taken appropriate measures during the recess of the judiciary over a three-day national holiday and will begin its legal defense as soon as the courts resume regular operations on September 8,” Sigma said in its statement. “Sigma Lithium has consistently acted in a transparent manner with federal, state and municipal authorities and has provided extensive technical, environmental and quantitative evidence regarding its operations. The company remains committed to operating transparently, responsibly and in accordance with applicable Brazilian laws and regulations.”
The Grota do Cirilo operation is a fully integrated hard-rock lithium mining and industrial beneficiation complex in the State of Minas Gerais, Brazil, supported by one of the world’s largest lithium deposits. The company’s Phase 1 operations were commissioned in 2023. Phase 1 has a nameplate capacity of 270,000 metric tons per year (mt/y) of lithium concentrate. Sigma expects to grow lithium concentrate output capacity to approximately 770,000 mt/y and expects to deliver 240,000 mt of lithium oxide concentrate within 12 months, and 330,000 mt in FY 27.
The company also said it denies media reports stating that this preliminary ruling would have an overruling effect on the company’s recent all-encompassing TAC Agreement with the Minas Gerais State Authorities.
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