Sigma Lithium Corp. has fully resumed mining and industrial processing operations at its Grota do Cirilo project in Brazil following a landmark decision by the Federal Court of Appeals.
The legal victory reinstates the company’s environmental licences, overturning a previous emergency order issued by a local judge in Teófilo Otoni that had temporarily halted operations.
The ruling suspended the company’s environmental licences and was issued in connection with a lawsuit filed by Ngolo, an association that states it acts on behalf of local Quilombola communities.
Senior Federal Judge Mônica Sifuentes ruled in favour of Sigma Lithium, upholding the company’s ‘Emergency Motion for Suspensive Relief’ on technical merits.
In her judgment, Judge Sifuentes noted that any prolonged operational stoppage would inflict severe and lasting economic harm on the Vale do Jequitinhonha region in Minas Gerais, one of the state’s least economically advantaged areas.
Sigma Lithium is a major economic driver in the region, supporting approximately 19,000 direct and indirect jobs across 12 municipalities and benefiting roughly 80,000 family members. The company’s presence has driven significant regional growth, with local GDP per capita in key operating municipalities doubling in recent years.
The favourable court decision strengthens Sigma Lithium’s confidence in meeting its year-end 2027 production guidance of 330,000 tonnes of annualised lithium oxide concentrate.
Management confirmed that existing capacity at its South Pit mine and state-of-the-art Cleantech Industrial Plant, which recently demonstrated daily production capacity exceeding 1,000 tonnes, is fully sufficient to hit these targets without requiring additional capital expenditure.
The court ruling follows favourable political outcomes in Minas Gerais, where a pro-lithium governor was re-elected and 95 per cent of newly elected regional lawmakers support local critical mineral development.
With legal uncertainties resolved, the company remains focused on maintaining its zero-incident safety record and delivering sustainable, traceable lithium concentrate for global battery supply chains.
The company plans to resume in 2027 a Phase 2 expansion designed to close to double annual production capacity to 580,000 tonnes and plans a Phase 3 expansion to increase this further to 830,000 tonnes.
