Savannah Resources signs agreements with local communities for Barroso lithium project
Barroso has been deemed a 'Strategic Project' under the European Critical Raw Materials Act and Europe's largest spodumene lithium deposit.
Savannah Resources (LON: SAV) has finalized three agreements with local communities residing near the Barroso lithium project in Portugal. Barroso is recognized as a 'Strategic Project' under the European Critical Raw Materials Act and is the largest spodumene lithium deposit in Europe. In 2025, the company increased its reserve estimate by 40%, now standing at over 39 million tonnes.
The Barroso region, designated a World Heritage agricultural site since 2018, has faced opposition from local communities and environmental groups due to potential impacts on land use, water, and biodiversity.
The benefit sharing agreements have been signed with the Baldio of Alijó, Canedo, and Penalonga villages, the Baldio of the Couto de Dornelas, and the regional Secretariat of the Baldios of Trás-os-Montes and Alto Douro. These agreements grant community participation in decision-making bodies, local reinvestment of benefits, and fair rent-based compensation indexed to inflation for the land access.
Savannah Resources CEO Emanuel Proença emphasized that the agreements recognize the communities' ownership and involvement in the project's oversight and benefit sharing. The company aims to develop four open-pit mines, capable of producing lithium for approximately 500,000 electric vehicles annually, with plans for production to commence in 2028 upon receiving the final environmental license in the third quarter of 2026.
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