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Sigma Lithium halts Brazil Grota do Cirilo operations after court order
Sigma said the shutdown started after it received an electronic notice from Minas Gerais environmental regulator FEAM, reversing earlier claims that operations were continuing normally.
Sigma Lithium has halted all mining and processing at its Grota do Cirilo complex in Brazil after a federal judge suspended environmental licenses, Mining.com reported.
The suspension began on Wednesday, two days after the company dismissed reports that its environmental licenses had been suspended. Sigma said it started the shutdown after receiving an electronic notice from Minas Gerais state environmental regulator FEAM late the previous day.
Grota do Cirilo is Sigma’s only producing asset, with annual lithium concentrate capacity of 330,000 tonnes. Its first production stage reached commercial output in October 2023 after a C$188 million build.
BMO Capital Markets analyst Joel Jackson said the halt has led to a lower rating and a reduced target price, citing legal, safety, and environmental challenges, and noting that the timing for a return to normalized operations remains uncertain.