Sigma Lithium Halts Brazil Operations Amid Legal Dispute

Sigma Lithium Corporation halted all mining and processing at its Grota do Cirilo complex in Brazil on Wednesday. The shutdown followed an electronic notice from the Minas Gerais state environmental regulator, FEAM, after a federal judge suspended the site's environmental licenses.

The suspension resulted from a civil suit filed by the Federation of Quilombola Communities of Minas Gerais. The dispute centers on whether the regulator failed to consult the Baú, a protected Afro-Brazilian community, before licensing the mine. Sigma maintains the community is outside the required consultation zone and denies causing harm, but the court has ordered independent mapping to resolve the distance dispute.

Simultaneously, Brazil's National Mining Agency ordered a partial work stoppage at the site's north pit, citing an imminent risk caused by a damaged east wall. In response to these disruptions, Sigma has delayed its rolling 12-month production guidance by three months. The company maintains its 2027 output target and plans to fund operations during the halt through sales from stored tailings.