Brazil Court Suspends Sigma Lithium Mine Operations

A Brazilian court has ordered the suspension of environmental licenses and mining operations at Sigma Lithium’s Grota do Cirilo project in Minas Gerais, according to a court document reviewed by Reuters.

The ruling, issued Friday, stems from a civil lawsuit filed by the Federation of Quilombola Communities of Minas Gerais. The organization argues that Sigma Lithium’s mining project falls within the direct area of influence of the Bau Quilombola Community.

Quilombolas are traditional Afro-Brazilian communities with roots in settlements established by people who escaped slavery. Their territories receive legal protections, and projects that could affect them may face additional environmental licensing and consultation requirements.

Judge Antonio Lucio Tulio de Oliveira Barbosa found sufficient evidence that the Bau territory could be within the Grota do Cirilo mine’s area of influence. That would require procedures including free, prior and informed consultation with the affected community.

The judge also cited potential risks from Sigma Lithium’s operations, noting that blasting and earthmoving take place only a few kilometres from the traditional territory.

Studies referenced in the ruling indicate the Bau territory is approximately 2.7 kilometres, or 1.7 miles, from the project's directly affected area. That distance is well inside an 8-kilometre threshold that would trigger a more extensive licensing process.

Sigma Lithium has maintained that its project is outside the relevant impact zone. The court has now ordered an independent georeferencing assessment to establish the precise distance between the mining operation and the Quilombola territory.

In addition to suspending existing environmental licenses, the ruling prevents Minas Gerais authorities from issuing new licenses for the project. Sigma could also face a fine if mining activities continue despite the court order.

The Grota do Cirilo mine is Sigma Lithium’s only producing asset and has an annualized nameplate capacity of 330,000 tons of lithium oxide concentrate.

Sigma Lithium did not immediately respond to a request for comment made outside regular business hours.