Sigma Lithium operations suspended by Brazilian court

A federal court in Teófilo Otoni, Minas Gerais, has ordered the immediate suspension of environmental licenses and mining operations for Sigma Lithium at its Grota do Cirilo project. The decision follows a public civil action filed by the Federation of Quilombola Communities of Minas Gerais (N’Golo).

The court ruled that the project potentially encroaches upon the influence area of the Baú Quilombola community. Specifically, the ruling notes that mandatory consultation processes and specialized studies required during the licensing phase were not fulfilled. To resume operations, the company must obtain approval from the National Institute for Colonization and Agrarian Reform (Incra) regarding the Quilombola Component Study and the Quilombola Basic Environmental Project.

Additionally, the court mandated a Free, Prior, and Informed Consultation (CLPI) with the Baú community. The injunction also prohibits the Minas Gerais state government and the State Environmental Foundation (Feam) from issuing new authorizations or corrective licenses for the project until these requirements are met. Failure to comply with the order subjects Sigma Lithium to fines of R$ 100,000 per violation.