Tag: Covas do Barroso

  • 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.

  • NGOs Challenge EU ‘Strategic Project’ Status for Covas do Barroso Lithium Mine

    NGOs Challenge EU ‘Strategic Project’ Status for Covas do Barroso Lithium Mine

    Environmental organisations have launched legal proceedings against the European Commission before the Court of Justice of the European Union over Brussels’ decision to classify the proposed lithium mine in Covas do Barroso as a “strategic project” under the EU’s Critical Raw Materials Act.

    The action has been brought by the Association United in the Defence of Covas do Barroso (UDCB) and environmental law group ClientEarth. The groups argue that the Commission failed to properly assess the sustainability of the open-pit mining project, despite detailed submissions outlining environmental, social and safety concerns.

    According to the applicants, the Commission declined to revisit its designation even after evidence was presented highlighting risks related to water scarcity, biodiversity loss, impacts on protected species and the safety of planned tailings storage infrastructure. The NGOs contend that by limiting its review to identifying “manifest errors” in project applications, Brussels effectively sidestepped its broader obligations under EU environmental law and the Critical Raw Materials Regulation.

    In its earlier response, the Commission reportedly maintained that core environmental concerns fall primarily within national jurisdiction. The NGOs argue this interpretation weakens environmental safeguards and marginalises affected local communities, particularly in rural regions such as Covas do Barroso.

    By bringing the case to Luxembourg, the organisations are asking the Court to annul the Commission’s decision and clarify that projects labelled as “strategic” must demonstrably comply with sustainability standards and EU environmental principles.

    Opposition to the lithium project has persisted for more than eight years, with local residents and civic groups repeatedly challenging permitting decisions. The latest legal move marks a significant escalation in a long-running dispute over how Europe balances critical mineral supply ambitions with environmental protection and community rights.

  • NGOs Challenge EU Backing of Controversial Lithium Mine in Portugal

    NGOs Challenge EU Backing of Controversial Lithium Mine in Portugal

    Three NGOs have formally challenged the European Commission’s decision to grant ‘strategic project’ status to the Covas do Barroso lithium mine in northern Portugal — a move they say threatens both the environment and the cultural fabric of the local community.

    MiningWatch Portugal, ClientEarth, and Unidos em Defesa de Covas do Barroso filed the complaint on grounds that the project, fast-tracked under the Critical Raw Materials Act (CRMA), poses serious environmental and social risks that were not adequately assessed. They argue that preferential permitting and financing for the mine were granted without proper scrutiny.

    “The green transition must not be built on environmental harm and social injustice,” said Ilze Tralmaka, a lawyer with ClientEarth. “This mine threatens a fragile ecosystem and a community that has consistently opposed it.”

    Critics cite unsafe tailings storage, unviable water sources, and potential contamination of the Douro River system as key concerns. Additionally, locals argue the project jeopardizes traditional farming practices and rural livelihoods in the Barroso region — a designated Globally Important Agricultural Heritage System (GIAHS).

    NGOs also question the economic feasibility of the mine. With global lithium prices plummeting and multiple higher-grade spodumene projects in Australia shutting down, they argue that the Covas do Barroso project lacks financial justification. “This sets a dangerous precedent,” warns Nik Völker of MiningWatch Portugal. “It turns European peripheries into sacrifice zones.”

    The mine is being advanced by Savannah Resources, which must still pass regulatory and financing hurdles, and present a definitive feasibility study before construction — currently projected for 2026 or 2027.

    Local activist Catarina Alves highlights what’s at stake: “People here rely on clean water for drinking, farming, and livestock. If that’s lost, our way of life is gone. For what? A few years of lithium and a new kind of pollution?”

    The NGOs are calling for a rigorous, evidence-based reassessment of the project’s status. If their request is rejected or unresolved after up to 22 weeks, they plan to take the case to the Court of Justice of the European Union.

  • Cracks Appear in Europe’s Lithium Dreams as Global Market Shifts

    Cracks Appear in Europe’s Lithium Dreams as Global Market Shifts

    The once-optimistic projections for lithium mining in Europe, particularly at Portugal’s Covas do Barroso site, are facing new scrutiny amid global market disruptions and plummeting investor confidence.

    Recent developments in Ghana may offer some perspective for local opponents of the Covas do Barroso mine. In October 2023, Ghana awarded a 15-year lease to Atlantic Lithium Limited to mine its Ewoyaa site, one of the top ten largest lithium deposits globally with an estimated 35 million metric tonnes of potential output. However, the company—partly owned by U.S.-based Piedmont Lithium and Cleantech Group—has now announced that the project is on hold. The reason? A dramatic drop in the internal rate of return, from 105% to just 14%, leading Atlantic to declare it unviable under current conditions.

    The company had already invested $70 million, but the lithium market has slumped significantly since its November 2022 peak. Factors contributing to the downturn include major lithium discoveries in the U.S. and China, and the slower-than-expected adoption of electric vehicles. Compounding the issue is China’s fast-developing research and application of sodium-based battery alternatives, which are already entering commercial production for short-range vehicles.

    These global shifts call into question the long-term viability of other lithium projects, such as those pursued by Savannah Resources in Portugal. Savannah, which has secured fiscal concessions from the Portuguese state and projects a 25-million-tonne output from Covas do Barroso, could face similar economic pressures.

    While the Barroso project benefits from geographic proximity to EU refineries and markets—potentially cushioning it from the full brunt of market fallout—it is increasingly likely that operations will proceed on a smaller scale and with diminished returns. This could lead to more balanced decisions that account for both economic realities and the environmental and social concerns of local communities.