Brazil court order shuts Sigma Lithium mine
A federal judge suspended Grota do Cirilo’s environmental licences and mining operations on Sept. 4.
Brazil's Sigma Lithium halted mining and processing at its Grota do Cirilo complex after receiving an electronic notice from the state environmental regulator FEAM. The shutdown occurred two days after Sigma dismissed reports of a court suspending its environmental licenses. Grota do Cirilo, located about 450 km northeast of Belo Horizonte, is Sigma's only producing asset with an annual lithium concentrate capacity of 330,000 tonnes.
The company lowered its rating to 'market perform' and reduced its target price to $10 due to ongoing legal, safety, and environmental challenges. BMO Capital Markets analyst Joel Jackson stated that the timing of a return to normalized operations remains uncertain. While operations were continuing normally according to Sigma on Monday, a federal appeals court ruling will determine whether the restart will take place.
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