[SMM News] Sigma Lithium Says Brazil Operations Unaffected, No Legal Notice Received Over Alleged License Suspension

On september 9th, Sigma Lithium has stated it has not received any legal communication regarding a preliminary judicial ruling that reportedly suspended environmental licences at its Grota do Cirilo mine in Brazil. The company said mining and industrial activities continue uninterrupted, with production targets unchanged at 240,000 mt of lithium oxide concentrate over the next 12 months, rising to 330,000 mt in the 2027 financial year.

Sigma said the ruling was issued without due process and that it will begin its legal defence when courts resume normal operations on September 8, following a three-day national holiday recess. The company said it has consistently provided technical, environmental and quantitative data to authorities.

The ruling stems from a civil suit brought by a Quilombola community federation, which argued the Grota do Cirilo project falls within the direct area of influence of the Bau Quilombola territory, a designation that would trigger a requirement for free, prior and informed consultation. The presiding judge cited studies placing the territory 2.7 km from the project's directly affected area, within an 8 km threshold that activates the more extensive licensing process, and pointed to blasting and earthmoving activity near the community as grounds for risk of harm.

Sigma has argued the project lies outside the impact zone. The court has ordered an independent georeferencing review to determine the exact distance between the project and the Quilombola territory. Beyond the alleged suspension of environmental licences, the ruling bars Minas Gerais state from issuing new licences to the project and sets a fine for continued operations.