Sigma Lithium (ASX:SAU) has resumed mining operations after winning a decision in the Federal Court of Appeals.
The court upheld the company’s environmental licences, allowing full resumption of mining operations. Senior Federal Judge Mônica Sifuentes granted an emergency motion for suspensive relief against a ruling issued on 8 September 2026 by a local judge in Teofilo Otoni, categorically stating a stoppage would generate “lasting negative economic impact” in the Vale do Jequitinhonha region.
Legal challenge details
The original ruling suspended environmental licences following a lawsuit by local association Ngolo regarding Quilombola communities. Government records showed no Quilombola descendant houses within 12km of the Grota do Cirilo Project when operations commenced in 2023.
The lawsuit stems from a self-proclaimed perimeter 30 times larger than the original area requested. The company maintains its operations are not located within this new perimeter.
Production guidance maintained
Sigma Lithium also maintains confidence in achieving 330,000 tonnes of annualised lithium oxide concentrate production by year-end 2027 through its South Pit operations at mine one and the Cleantech Industrial Plant.
The plant demonstrated capability to produce above 950 tonnes of lithium oxide concentrate per day following a tech upgrade in Q4 2024. Daily production surpassed 1,000 tonnes after a reprocessing circuit for fines and ultra fines was completed in Q1 2025.
Sigma Lithium is a commercial lithium producer operating the Grota do Cirilo Lithium Operation in Brazil.
Write to Paula Fabe at Mining.com.au
Main image: Sigma Lithium
