Brazilian Court Suspends Licenses for Sigma Lithium's Grota do Cirilo Mine

A Brazilian judge has ordered the suspension of environmental licenses and mining operations at Sigma Lithium's Grota do Cirilo mine in Minas Gerais state. The ruling, issued on Friday, stems from a civil suit filed by the Federation of Quilombola Communities of Minas Gerais.

The federation argued that the mining project falls within the direct area of influence of the Bau Quilombola territory. Quilombolas are traditional communities of African descent, historically formed by people who escaped slavery. Their lands receive special state protection, requiring more extensive licensing procedures for any project that could impact them.

Judge Antonio Lucio Tulio de Oliveira Barbosa found sufficient evidence that the Bau territory lies within the project's influence zone. This triggers the need for a free, prior, and informed consultation with the community. The judge noted a risk of harm, citing the mining complex's "constant blasting and earthmoving activities just a few kilometres from the traditional territory."

Court documents reference studies indicating the territory is approximately 2.7 km from the project's directly affected area. This is well within the 8 km threshold that mandates the more rigorous consultation process. Sigma Lithium has maintained that its project is outside the impact zone.

The court has ordered an independent georeferencing expert review to establish the precise distance between the mine and the Quilombola territory. Beyond suspending existing licenses, the decision prohibits Minas Gerais state authorities from granting new ones. It also establishes a fine for Sigma if it continues operations.

In a statement released on Monday, Sigma Lithium said it continues to operate the mine and has not yet been formally notified of what it termed "a preliminary judicial ruling issued without due process." The company stated it would begin its legal defense on Tuesday.

The Grota do Cirilo mine is Sigma's only productive asset, with an annualized nameplate capacity of 330,000 tons of lithium oxide concentrate.