Sigma Lithium resumes full operations after Brazil agreement

Sigma Lithium Corporation (NASDAQ:SGML) (TSXV:SGML) announced it has fully resumed mining and industrial operations in Brazil following the signing of a Terms for Adjustment of Procedures agreement with the State of Minas Gerais. The company confirmed it will pursue its initial targets of producing 240,000 tonnes of lithium oxide concentrate within a year and 330,000 tonnes in fiscal year 2027.

To adjust environmental procedures under the agreement, Sigma Lithium estimates the capital expenditure to be about $1 million. The company also agreed to compensate up to $540,000 for fines related to environmental issues from 2013 to 2022, though it denies any wrongdoing. Sigma Lithium stated it has not misrepresented information to environmental authorities since 2018 nor commercially sold lithium materials before May 2023.

In addition, the company denied claims that two houses outside its licensed area were adversely affected by its operations, but it agreed to widen and gravel their access roads. Operations related to selling high-purity lithium fines, including reprocessed tailings and intermediate grade products, continued uninterrupted during the partial suspension.

The company also announced it has approved upgrades to its haulage fleet in partnership with manufacturer SANY, expecting to increase fleet capacity with 75-tonne trucks and 98-tonne excavators. Sigma Lithium confirmed it is operating under a TAC Agreement, a standardized form of agreement in Brazil that outlines actions and deadlines between regulators and corporations.