Brazil court suspends operations at Sigma Lithium’s sole producing mine

On September 6, a Brazilian judge ordered the suspension of Sigma Lithium's environmental licenses and mining activities at its Grota do Cirilo mine, according to a court document obtained by Reuters. The decision was made in response to a civil lawsuit filed by the Federation of Quilombola Communities of Minas Gerais. The federation argued that the mine's project falls within the direct area of influence of the Bau Quilombola Community, a territory protected by the state and subject to stricter licensing requirements.

Judge Antonio Lucio Tulio de Oliveira Barbosa found sufficient evidence that the Bau territory lies within the project's area of influence, which requires procedures such as free, prior, and informed consultation with the affected community. The judge cited the risk of harm to the community due to the mine's constant blasting and earthmoving activities occurring just kilometers from the traditional territory.

Studies indicate the territory is approximately 2.7 km (1.7 miles) away from the directly affected area, falling within the 8 km threshold that triggers more extensive procedures.

Sigma Lithium contested the claim, stating that the project lies outside the impact zone. The court has ordered an independent georeferencing expert review to accurately determine the distance between the project and the Quilombola territory. In addition to suspending environmental licenses, the decision bars Minas Gerais state from issuing new ones and imposes a fine on Sigma if it continues its operations.

As the mine's sole productive asset, Sigma's project has a nameplate capacity of 330,000 tons of lithium oxide concentrate per year. Sigma has not responded to requests for comment outside normal working hours.