Brazilian court suspends licenses for Sigma Lithium mine

According to a court filing reviewed by Reuters, a Brazilian judge has ordered the suspension of environmental permits and mining operations at Sigma Lithium's Grota do Cirilo mine.

The ruling, issued on Friday, came in a civil lawsuit brought by the Federation of Quilombola Communities of Minas Gerais, which contended that the mining project falls within the direct area of influence of the Bau Quilombola Community.

Quilombolas are traditional communities of African descent, originally formed by people who escaped slavery. Their territories are safeguarded by the state, and projects with the potential to affect them require a more extensive licensing process.

Judge Antonio Lucio Tulio de Oliveira Barbosa stated that sufficient evidence indicated the Bau territory lies within the project's area of influence, thereby triggering obligations such as free, prior, and informed consultation with the community.

The judge noted the potential for harm to the community, pointing out that the mining complex conducts "constant blasting and earthmoving activities just a few kilometres from the traditional territory."

The judge referenced studies showing the territory sits roughly 2.7 km (1.7 miles) from the project's directly affected area—well under the 8 km cutoff that mandates the more rigorous consultation process.

Sigma has argued that the project is situated outside the impact zone. The court has ordered an independent georeferencing expert review to determine the exact distance between the project and the Quilombola territory.

Beyond suspending the existing environmental licenses, the decision blocks Minas Gerais state from granting any new licenses and establishes a fine for Sigma if it continues operations.

The Grota do Cirilo mine, which is Sigma's only producing asset, has a nameplate capacity of 330,000 tons of lithium oxide concentrate on an annualized basis.

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