MINEX Forum

Tag: Barroso lithium

  • Savannah Resources Resumes Barroso Lithium Work After Portugal Government Overrides Court Injunction on National Interest Grounds

    Savannah Resources Resumes Barroso Lithium Work After Portugal Government Overrides Court Injunction on National Interest Grounds

    Savannah Resources has resumed work at its Barroso lithium project in northern Portugal after the government declared the project of national and European significance and succeeded in lifting a court-ordered suspension that had halted operations for three weeks.

    Work was suspended on 9 June after the Mirandela Administrative and Fiscal Court granted a precautionary injunction filed by the Barroso Assembly of Common Land Holders, following a second administrative easement that gave Savannah access to community and private land for geotechnical work. In its response to the court, the Portuguese government argued that the suspension could cause serious harm to the public interest, delay a project of recognised national and European strategic importance, and jeopardise the energy transition. The suspension was lifted on Monday and Savannah said it will reinitiate fieldwork and complete the planned work programme.

    There is no legal right of appeal against the lifting of the injunction, though opponents may attempt further legal action.

    The Barroso deposit in northern Portugal hosts resources exceeding 39 million tonnes of spodumene, making it Europe’s largest lithium deposit. Potential extensions of 35 million to 62 million tonnes could push total resources above 100 million tonnes and more than double the projected mine lifespan to over 50 years. The project is one of 47 designated as strategic under the EU’s Critical Raw Materials Act.

    The project has faced nearly a decade of sustained community opposition and numerous legal challenges. A final investment decision is expected by the end of 2026, with construction planned for 2027 and first production targeted for 2028.

  • Savannah Resources Eyes Euronext or ASX Secondary Listing to Broaden Investor Base as Barroso Lithium Targets 2028 Production

    Savannah Resources Eyes Euronext or ASX Secondary Listing to Broaden Investor Base as Barroso Lithium Targets 2028 Production

    Savannah Resources is pursuing a secondary listing on either Euronext in Lisbon or the Australian Securities Exchange to tap growing investor appetite for battery materials outside the UK market, as the London-listed company advances its Barroso lithium project in northern Portugal toward a feasibility study completion this summer and construction start in 2027.

    CEO Emanuel Proença said the company has seen growing interest from investors who typically access markets through Euronext, where no major lithium spodumene plays are currently listed. “There are no big lithium spodumene plays on Euronext, so that is kind of a new offering,” he said. The ASX remains an established venue for lithium stocks and is also under consideration. The secondary listing would support Savannah’s broader financing strategy, which also includes offtake-related finance alongside the existing offtake agreement with AMG Lithium BV — the company’s largest shareholder.

    Barroso, which received EU strategic project status in 2025, has the potential to become one of Europe’s largest lithium operations, with planned annual output sufficient to supply battery packs for approximately half a million electric vehicles. Production is targeted to begin in late 2028 following a construction phase starting in 2027.

    Savannah is currently negotiating additional offtake agreements beyond the AMG Lithium deal, including with parties in China. Proença noted that initial production volumes would exceed what European markets can absorb in the near term, making broader offtake arrangements necessary. The company has a market capitalisation of approximately £160 million ($210 million).

    Lithium prices have rebounded more than 150% over the past year, supported by the emergence of large-scale battery storage as a demand driver alongside electric vehicles, prompting mine restarts in Australia and renewed financing interest across the sector.

  • Portugal Grants Savannah Resources Second Land Easement at Barroso Lithium Site as Village Resistance Intensifies

    Portugal Grants Savannah Resources Second Land Easement at Barroso Lithium Site as Village Resistance Intensifies

    The Portuguese government has granted Savannah Resources a second administrative easement over 24 plots of private and communal land in the Covas do Barroso area of northern Portugal, allowing the British-based mining company to proceed with geotechnical survey work at its contested Barroso lithium project — a decision that has deepened the conflict between the state and local communities defending what is designated a World Agricultural Heritage site.

    The easement, published in the state gazette Diário da República, was declared by the secretary of state for energy and grants Savannah access to the land for a period of one year. The company said the authorisation will allow it to complete geotechnical work to optimise its understanding of the foundations on which processing infrastructure and other facilities for the project’s next phases will be built. CEO Emanuel Proença described it as “another step in the development of the Barroso lithium project” and “a perfectly natural process in the development of any industrial project,” adding that the company would contact all affected landowners to arrange compensation.

    For the Union in Defence of Covas do Barroso, the decision represents another blow in a long campaign against a project they argue threatens their territory, their livelihoods and their legal rights. The group noted that the project involves four open-pit mines, daily water consumption of approximately one million litres, the use of explosives and a 140-metre-high toxic tailings dam. It also recalled that the Portuguese Public Prosecutor’s Office issued an opinion suggesting that the project’s Environmental Impact Statement should be annulled due to legal violations in the public participation process — a view the government has not acted upon. The state’s earlier decision to grant €110 million in public funding to the project drew particular criticism from the group, which described it as a perversion of the public interest in favour of a private company operating on contested land.

    The first administrative easement, granted in 2024, was temporarily halted by a court injunction obtained by villagers, who reported forced entries onto unauthorised areas and the presence of private security guards in the village during early survey work. Whether the community will mount a similar legal challenge to the new easement has not yet been confirmed.

    The project has received a favourable environmental impact declaration from Portugal’s state environment agency APA, subject to a number of conditions, giving it formal regulatory approval despite sustained local opposition. Savannah, which holds confirmed resources at Barroso of over 39 million metric tonnes — the largest lithium deposit in Europe — is targeting a final investment decision by the end of the year with construction planned for 2027 and first production in 2028.

  • Savannah Resources Targets 50-Year Mine Life at Europe’s Largest Lithium Deposit as Portugal Project Accelerates Toward 2028 Production

    Savannah Resources Targets 50-Year Mine Life at Europe’s Largest Lithium Deposit as Portugal Project Accelerates Toward 2028 Production

    London-listed Savannah Resources is pressing ahead with its Barroso lithium project in northern Portugal with growing confidence that the deposit — already Europe’s largest — can compete globally and become a meaningful contributor to reducing the continent’s dependence on Chinese lithium supply.

    Speaking to Reuters on Tuesday, Chief Executive Emanuel Proença said work had “accelerated in recent months on all fronts,” pointing to advances in engineering studies, progress on environmental requirements and preparations for project financing ahead of a final investment decision expected by the end of this year. Construction is planned for 2027, with first production targeted in 2028.

    Confirmed resources at the Barroso spodumene deposit were upgraded in September to over 39 million metric tonnes, up from 28 million metric tonnes. Proença said potential resource extensions of between 35 million and 62 million metric tonnes could push the total above 100 million metric tonnes, more than doubling the mine’s projected operational lifespan to over 50 years. The company has also received a €110 million grant from the Portuguese government, which Proença described as “a positive step” in the project’s financial development.

    On competitiveness, Proença said Barroso could break even at $600 per tonne of spodumene concentrate — a level he said would allow it “to compete with the majors” — at a time when spodumene shipped to China is trading above $2,000 per tonne. The project’s proximity to European refineries was cited as a further structural advantage, reducing logistical costs and supply chain exposure to China.

    Europe’s push to build domestic lithium extraction and refining capacity remains constrained, and Barroso is widely regarded as one of the continent’s best near-term prospects for closing that gap. However, the project has faced local community opposition since Barroso was designated a World Heritage agricultural site in 2018. Proença acknowledged the tension but said resistance was “gradually decreasing” as the company increases local hiring and intensifies engagement with surrounding communities.

  • Savannah Resources secures up to €110 million state grant for Barroso lithium project in Portugal

    Savannah Resources secures up to €110 million state grant for Barroso lithium project in Portugal

    Savannah Resources has been awarded a non-reimbursable grant of up to approximately €110 million from the Portuguese State to support construction of its flagship Barroso lithium project in northern Portugal. The project has been designated as strategic under the European Union’s Critical Raw Materials framework.

    The funding represents one of the largest public financial contributions to a mining project in Portugal and reflects support from both national and European authorities for the development of a domestic lithium supply chain linked to the energy transition. Barroso is Europe’s largest known spodumene lithium deposit and is viewed as a cornerstone asset for strengthening regional battery raw material security.

    According to Savannah, the grant will be provided under Portugal’s Investments in Strategic Sectors Incentive Scheme and falls within the contractual investment regime for large-scale projects considered critical to carbon neutrality and economic transformation. The funding is backed by national resources and the European Commission’s Temporary Crisis and Transition Framework.

    The €110 million grant is split into two parts. Around 75%, or €82.25 million, will support initial capital expenditure, while the remaining €27.42 million is tied to operational performance milestones once the mine enters production. The funding is non-repayable but subject to specific conditions and project timelines.

    The award will be formalized through an investment agreement with AICEP, following approvals from the Compete 2030 programme and the Ministry of Economy and Territorial Cohesion. Savannah said it expects the first tranche of funding to be drawn alongside the initial capital development phase.

    Chief executive Emanuel Proença said the grant marks a major milestone for both Savannah and the Barroso project, significantly strengthening its capital structure as the company targets first production from 2028. He added that the project is expected to deliver broad economic and social benefits, including job creation in the Barroso region, the development of a new industry in Portugal, and improved European energy independence through locally sourced lithium.

    Chief financial officer Henrique Freire noted that the grant enhances the project’s financial position ahead of a final investment decision expected later this year, as Savannah continues to advance discussions on debt financing and strategic partnerships.

  • Savannah Resources Lifts Barroso Lithium Reserves by 40%, Reinforcing Europe’s Largest Deposit

    Savannah Resources Lifts Barroso Lithium Reserves by 40%, Reinforcing Europe’s Largest Deposit

    Savannah Resources (LON: SAV) has increased the reserve estimate for its flagship Barroso lithium project in northern Portugal by 40%, strengthening its role as Europe’s largest spodumene deposit.

    Following additional prospecting work, reserves are now pegged at more than 39 million tonnes, up from 28 million tonnes. The announcement pushed Savannah’s shares up 2.4%, giving the London-listed company a market value of £104 million ($141.5 million).

    Savannah highlighted the project’s importance to Europe’s battery value chain, noting its potential as both a strategic supplier of raw lithium and a long-term contributor to regional economic development. The company plans to develop four open-pit mines capable of producing enough lithium annually to power batteries for around 500,000 electric vehicles. Subject to permitting and financing, production is expected to start in 2027.

    At full operation, the mine is forecast to process 1.5 million tonnes per year over a 14-year lifespan, based on a resource of 20.5 million tonnes grading 1.05% lithium oxide.

    However, the project has drawn strong opposition from local communities and environmental groups. The Barroso region, recognized as a World Heritage agricultural site since 2018, has raised concerns over potential impacts on land, water resources, and biodiversity.

    Savannah said it expects to complete its definitive feasibility study and secure environmental licensing by the end of the year. The company also dismissed recent media reports claiming a United Nations committee had accused Portuguese authorities of breaching international law during the project’s approval process.

  • Savannah Resources Appoints Ex-Ministers to Steer Controversial Lithium Mine Forward

    Savannah Resources Appoints Ex-Ministers to Steer Controversial Lithium Mine Forward

    Despite persistent local resistance and legal challenges, Savannah Resources continues to press ahead with its controversial open-pit lithium mine in Barroso, northern Portugal. The company announced the formation of a new advisory committee, composed of former Portuguese government ministers Luís Mira Amaral (PSD) and Luís Amado (PS), German supply chain specialist Astrid Karamira, and former EDM president Carlos Caxaria.

    Savannah’s CEO Emanuel Proença stated that the committee’s role is to provide strategic guidance to ensure the “success and sustainability” of the Barroso lithium project, which is slated to begin production in 2027. The mine received a conditional Environmental Impact Statement (EIS) in 2023 and has been classified as a strategic project by the European Commission under the Critical Raw Materials Regulation.

    However, opposition remains fierce. NGOs including Unidos em Defesa de Covas do Barroso (UDCB), MiningWatch Portugal, and ClientEarth have formally challenged the European Commission’s support, claiming the project’s environmental and social impacts were insufficiently assessed.

    Savannah argues that the mine could supply enough lithium to power over half a million electric vehicle batteries annually — more than three times Portugal’s yearly vehicle sales. Nonetheless, the lack of a domestic refinery has drawn criticism, with the original plan for a lithium processing plant by GALP now abandoned and a new facility only projected for 2028.