Brazil Court Orders Sigma Mine Suspension, Company Disputes

A Brazilian court ordered the suspension of Sigma Lithium’s environmental permits and mining activities at its Grota do Cirilo project in Minas Gerais, potentially halting operations at a major Lithium Valley development. The case was brought by Quilombola communities, which argue that the mine affects the nearby Baú community and that Sigma must conduct additional impact studies and consultations before operating. The court also suspended a recent agreement that had allowed the mine to resume after a separate state embargo, while researchers have raised concerns about dust, cracked homes, water supplies and mining waste. Sigma Lithium disputes the ruling, saying it has not received formal legal notice, that operations remain active and that the decision was issued without due process; the company plans to begin its legal defense when courts reopen on September 8. Sigma also said the ruling does not override its agreement with Minas Gerais authorities and reiterated production targets of 240,000 tonnes of lithium oxide concentrate over the next 12 months and 330,000 tonnes in fiscal 2027.