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Brazilian court suspends licenses for Sigma Lithium mine

By Thomson Reuters Sep 6, 2026 | 10:08 AM

By Fabio Teixeira

RIO DE JANEIRO, Sept 6 (Reuters) – A Brazilian judge ordered the suspension of environmental licenses and mining activities at Sigma Lithium’s Grota do Cirilo mine, ​a court document seen by Reuters showed.

The decision ‌was made on Friday in a civil suit brought by the Federation of Quilombola Communities of Minas Gerais, where the group said the miner’s project was within the direct area of influence of the Bau ‌Quilombola ​Community.

Quilombolas are traditional communities of African ⁠descent, which were created by ⁠people who escaped slavery. Their territories are protected by the state, with more extensive licensing for projects that could impact them.

Judge Antonio Lucio Tulio de Oliveira Barbosa said ​there was sufficient evidence that the Bau territory fell within the project’s area of influence, triggering obligations for procedures ⁠including a free, prior and informed ⁠consultation with the community.

The judge said there was ​risk of harm to the community, as Sigma’s mining complex carried ​out “constant blasting and earthmoving activities just a few kilometres ‌from the traditional territory.”

The judge cited studies indicating the territory is about 2.7 km (1.7 miles) from the project’s directly affected area, well within the 8 km threshold that triggers the ⁠more extensive process.

Sigma has argued the project lies outside the impact zone. The court ordered an independent georeferencing expert review to determine ⁠the exact distance ‌between the project and the Quilombola territory.

Beyond ⁠suspending environmental licenses the decision bars Minas Gerais ​state ‌from granting new ones, and establishes a ​fine for ⁠Sigma if it continues its operations.

The mine, Sigma’s only productive asset, has a nameplate capacity of 330,000 tons of lithium oxide concentrate on an annualised basis.

Sigma did not reply to a request for comment made outside normal working hours.

(Reporting by Fabio TeixeiraEditing ​by Tomasz Janowski)