Within Europe, a battle is unfolding over the continent’s energy future, as mining companies explore and develop projects, while communities see their efforts as something entirely different.
In the hills of the Tras-os-Montes region in Northern Portugal, lies Savannah Resources’ (LSE:SAV) Barroso Lithium Project. To Savannah Resources it represents a cornerstone asset in Europe’s push for battery independence.
But to locals it represents a “serious crime against the environment”, as reported by Deutsche Welle.
For several years, locals have resisted the offers of Savannah Resources to purchase the land of the Barroso Mine which has a lithium resource of 39 million tonnes @ 1.05% lithium oxide for 411,900 tonnes across five orebodies.
According to Chambers and Partners, projects hold public consultations under the Environmental Impact Assessment (EIA) in Portugal. This allows locals opportunities to voice concerns, and ask questions on proposed activities – which is what is being seen in Savannah Resources’ case.
Open-cast mining is often met with opposition from local communities, with residents living close to mining sites frequently expressing concerns over the deterioration in their living conditions, a loss of biodiversity, and the potential health risks associated with air and water pollution.
The Barroso Lithium Project is designed as a conventional hard-rock lithium operation, producing spodumene concentrate, which Savannah believes is the closest European analogue to Australian hard-rock lithium projects, as Mining.com.au reported.
Despite the potential significance Barroso has to offer, community resistance has proven formidable. Some landowners have reduced access for drill testing, forcing governments to intervene by decree to grant temporary access.
Savannah is currently waiting for final state sign off of a temporary land access order to allow field work on certain parts of the project. Lithium mining is now scheduled for 2028.
A cultural divide
Speaking to Mining.com.au in a wide ranging interview, Aguia Resources (ASX:AGR) non-Executive Chairman Warwick Grigor argues that there are parts of the world where there is a cultural divide compared to Australia.
“You’ve got to recognise and deal with what you’ve got. You try to open a mine in Spain or Portugal, I would never go to those countries. It’s too hard,” Grigor tells this news service.
“Spain’s just too hard. When you’ve got a country like Australia, and a lot of African countries, and our culture, they want to get things done.”
Grigor notes that in Spain and Portugal in particular, there has been many instances where projects “fail” for non-technical reasons.
“It’s for administrative reasons and cultural reasons – in France, Spain, and Portugal,” he says.
“We’re so lucky. Even though our Australian industry is constantly getting more and more regulated, there’s still an ability to do things, even though it’s more difficult. Because it’s different from Europe. I mean, Australia would be nothing without mining and sheep, I suppose.”
However, Portugal is no stranger to mining. The nation’s mining history dates back to the Roman era. As of December 2025, mining production has risen 14.6% compared to the same period last year, as reported by Trading Economics.
According to MinEx Europe, Portugal’s mining sector has a market size of €580.1 million ($971.19 million) as of 2024 – ranking eighth in Europe for revenue.
Still, the nation’s regulatory framework places public participation at its core – but the tension is sharpened by geopolitics.
Strategic metal, strategic pressure
Lithium is classed as a critical raw material under the European Union’s Critical Raw Materials Act. The Critical Raw Materials Act aims to reduce dependence on third countries by boosting domestic extraction, processing, and recycling. The EU has set a goal of producing 10% of raw materials for its needs from mines within the area.
According to the European Commission, the EU will need 18 times more lithium in 2030 than it consumed in 2020, and 60 more times by 2050. Domestic battery manufacturing is forecast to reach 800 gigawatts in Europe and the EU currently reliant on imported battery-grade lithium raw material.
In March 2025, the European Commission declared Savannah Resources’ Barroso Mine as a ‘strategic project’, recognising its potential contribution to supply security.
Additionally, the Portuguese Government has classed the mine as a project of ‘national interest’, meaning that simplified procedures for issuing permits, while residents and affected municipalities practically no longer have the right to co-decision.
Accordingly, the project’s potential has been cited as one likely to make a key contribution to the EU’s secure supply of strategic raw materials, as well as its adhere to environmental, social, and governance criteria.
Since Savannah acquired the project in 2017, more than 50,000m of resource-focused drilling has been completed.
Meanwhile, other domestic players are advancing ambitions in parallel to Savannah Resources. Portuguese mining company Lusorecursos, owner of the Montalegre Lithium Project, aims to be a vertically integrated mining and processing operator.
Lusorecursos also plans to build a lithium refinery in Portugal that will process lithium concentrate into battery-grade lithium hydroxide.
Chambers and Partners notes that the presence of substantial lithium resources has spurred interest in battery manufacturers within Portugal. Discussions and preliminary plans are underway for battery production facilities that can use locally processed lithium.
Portugal’s mining crossroads is not only about one singular mine. It reflects a broader question confronting Europe – can the continent, or Portugal specifically, decarbonise without domestic extraction.
Write to Aaliyah Rogan at Mining.com.au
Images: Savannah Resources & Lusorecursos
