Brazil Court Suspends Sigma Lithium Mine Licenses and Operations

Brazil Court Suspends Sigma Lithium Mine Licenses and Operations

Brasilia, September 07, 2026 [VoM News]: In a major setback Sigma Lithium Mine, a Brazilian court has ordered the suspension of environmental licenses and mining activities at Sigma Lithium’s Grota do Cirilo mine in Minas Gerais, Reuters reported.

This development takes place after the verdict related to a civil case filed by the Federation of Quilombola Communities of Minas Gerais, was announced.

The group argued that the lithium mining project falls within the direct area of influence of the Bau Quilombola Community.

Quilombolas are traditional communities of African descent whose ancestors escaped slavery. Their territories receive legal protection, and projects that could affect them are subject to additional environmental and consultation requirements.

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Judge Antonio Lucio Tulio de Oliveira Barbosa said there was sufficient evidence that the Bau territory could be affected by the mining project. He said this triggered requirements including free, prior and informed consultation with the community.

The judge also pointed to potential risks from ongoing blasting and earthmoving activities near the traditional territory. Studies cited in the ruling placed the territory around 2.7 km from the project’s directly affected area, below the 8-km distance at which additional procedures apply.

Sigma Lithium has maintained that its project is outside the relevant impact zone. The court has ordered an independent georeferencing assessment to establish the exact distance between the mine and the Quilombola territory.

The ruling also prevents Minas Gerais from issuing new environmental licenses for the project and imposes a fine if Sigma continues mining operations.

Grota do Cirilo is Sigma Lithium’s only producing asset, with an annualised capacity of about 330,000 tonnes of lithium oxide concentrate.

Courtesy: Reuters