MINEX Forum

Tag: Portugal

  • Portugal Finalizes Strategic Plan for Green Transition Raw Materials

    Portugal Finalizes Strategic Plan for Green Transition Raw Materials

    Portugal’s government is finalizing a strategic plan to explore raw materials critical to the green transition, with a particular focus on copper, which may take precedence over lithium. On Monday, Environment and Energy Minister Maria da Graca Carvalho highlighted Portugal’s wealth of critical raw materials, including copper, essential for electric cars.

    Portugal boasts the largest copper mine in the European Union, operated by Toronto-based Lundin Mining. The country also produces lithium for the ceramics industry and is developing large deposits of battery-grade lithium. “We have great potential to explore for copper, we already have a great tradition and we will continue to invest,” Carvalho stated during a conference.

    “When looking at critical raw materials, we have to consider lithium, but it is not the only one, nor perhaps the most important,” she added. The strategic plan is set to be presented on July 22. Carvalho noted, “Based on this strategy, we will define the areas of production for the various critical raw materials,” suggesting potential new concessions.

    Europe aims to enhance security and reduce dependence on imports from countries like China for materials crucial to the green transition. The previous Portuguese government had planned to auction licenses for lithium prospecting in six regions in the north and center of the country. However, concerns from nature preservation groups and local communities about the environmental and social impact of lithium mining have caused multiple delays since the auction’s initial plan in 2018.

    When asked about the new government’s stance on the lithium auction, Carvalho emphasized the need to review the final strategic plan and make decisions based on scientific and technical data.

  • Portuguese prime minister resigns amid lithium corruption allegations

    Portuguese prime minister resigns amid lithium corruption allegations

    Portuguese Prime Minister Antonio Costa has resigned amid investigations into possible crimes of corruption in government relating to lithium and hydrogen projects. Prosecutors have detained his chief of staff as part of the investigation.

    Costa announced his resignation on television, stating: “Today I was surprised by the information, officially confirmed by the public prosecutor’s office, that a criminal process has already been or will be initiated against me. Obviously, I am fully available to collaborate with the justice system in whatever is necessary to uncover the truth. However, it is my understanding that the dignity of the function of prime minister is not compatible with the suspicion of any criminal act, which is why I obviously presented my resignation.”

    The outgoing prime minister added that he has a “clear conscience” and will not run for the fourth time in the early elections that the Portuguese president will likely call.

    President Marcelo Rebelo de Sousa must now decide whether to allow Costa’s Socialists to form a new government with their majority in parliament or to dissolve parliament and call an election.

    Prosecutors are currently investigating alleged graft and influence peddling in the Barroso and Montalegre lithium mine concessions in northern Portugal and a project for a hydrogen plant in Sines port. On Tuesday, five people were detained as part of the investigation.

    The prosecutor’s office said: “At stake may be… facts capable of constituting crimes of malfeasance, active and passive corruption of politicians and influence peddling.

  • Portugal activists urge suspension of lithium projects after PM quits

    Portugal activists urge suspension of lithium projects after PM quits

    Antonio Costa resigned on Tuesday, hours after prosecutors detained five people, including his chief of staff, and named two formal suspects close to him in an investigation into lithium mining and hydrogen projects.

    Costa’s possible role is also being investigated by the Supreme Court of Justice after prosecutors said they had become aware the suspects allegedly used his name and authority to “unblock procedures” related to the deals. He has denied wrongdoing and said his conscience is clear.

    With more than 60,000 metric tons of known lithium reserves, Portugal is Europe’s biggest lithium producer, but its miners sell almost exclusively to the ceramics industry.

    They are now preparing to produce the higher-grade lithium used in electric cars and electronic appliances, as Europe seeks to develop its own strategic energy resources to reduce dependence on suppliers like China.

    Environment agency APA earlier this year gave environmental approvals for local company Lusorecursos to extract battery-grade lithium and for London-based Savannah Resources to develop four open-pit mines. Both projects are in northern Portugal.

    Lusorecursos did not reply to a request for comment. Savannah said in a statement it was cooperating with the authorities who visited some of its locations, but that neither the company nor anyone one its staff was a target of the investigation.

    Lithium projects have faced strong opposition from local residents and environmentalists. They say the processes lacked transparency and have repeatedly warned of the “dangerous promiscuity” between decision-makers and mining companies.

    They have also been demanding stronger regulation.

    In a joint statement, eight anti-mining groups said the current situation was proof their concerns were legitimate, namely because APA President Nuno Lacasta was named a suspect along with Infrastructure Minister Joao Galamba, who previously served as energy secretary.

    “Lithium mining projects in Portugal must be immediately cancelled to not allow territories and populations to be affected based on corrupt and unclear processes,” the groups said.

    Exploration rights

    They accused APA of working in the interest of mining companies and said the government had “created a network of business opportunities to benefit very few (people)”.

    APA did not reply to a Reuters request for comment about the criticism. It confirmed on Tuesday that its offices had been searched as part of the investigation, but has made no further comment. Galamba’s ministry has not responded to requests for comment.

    In 2019, Portugal’s government came under fire from lawmakers for signing a contract giving exploration rights for lithium mining to Lusorecursos when the company was only three days old.

    The UDCB movement, which is campaigning against mining expansion in the Barroso region, where Savannah Resources wants to develop its project, said in a separate statement that the environmental approvals given by APA should be reviewed.

    Catarina Scarrott, from the UDCB, told Reuters the movement had been denied access by APA to environmental documents related to the project in Barroso. APA did not immediately to a request for comment on this accusation.

    “The consequences of things going wrong are very serious,” Scarrott said, referring to the potential environmental impact of the mines, which according to UDCB include water contamination and threats to the region’s fauna.

    UDCB said the “suspension of any licensing, prospecting or exploration licences is imperative until criminal responsibilities can be properly ascertained”.

  • Portugal’s Barroso lithium mine project faces villagers’ ire

    Portugal’s Barroso lithium mine project faces villagers’ ire

    The lithium would be used for electric car batteries and is described by the mining company as critical for Europe’s transition to green energy.

    Portugal’s lithium reserves are considered central to Europe’s increasing demand for electric cars, but the villagers say it doesn’t justify ruining their way of life.

    “It would destroy everything,” says Aida Fernandes, as she looks across the valley where four opencast pits would border the village of Covas do Barroso in northern Portugal.

    Aida, like generations before her, farms cattle in this lush, unspoilt region which has UN Food and Agricultural Heritage status for its landscape and farming traditions.

    She deftly manoeuvres a tractor-load of brushwood which she’s spent the afternoon cutting from common land owned jointly by the community. Next she spreads the springy branches across the floor of the barn for bedding for her cattle.

    Common land is key to a dispute over plans for a new opencast mine – the Barroso Lithium Project – which would produce enough lithium for 500,000 electric car batteries a year over its 14-year operational life.

    But three quarters of the mine depends on accessing lithium deposits found in rocks on common land in the area, with the majority owned by the village.

    Aida is president of the Baldios – or common land association – which has rejected international mining company Savannah Resource’s financial offer to lease the land currently used for forestry and pasture.

    The European Union is keen to reduce its dependence on mines in China, Africa and South America for lithium and other raw materials needed for the green energy transition.

    The Barroso mine could be one of the first large-scale mines to supply battery grade lithium within Europe and in May Portugal’s Environment Agency gave Savannah Resources, which is based in London, the conditional go-ahead.

    They had revised their original proposals and agreed to changes such as not taking water from the local river. They must also build a new road to avoid the villages and fill in the opencast pits when mining there is finished.

    But opposition is still strong and Aida says that at the meetings they’ve had, “There isn’t anyone who’s in favour.” She says that in spite of the changes, “this is not good for us or for the environment” and they will fight on.

    If an agreement isn’t reached the Portuguese government could expropriate the land.

    Savannah also wants to buy private land from people like Maria Loureiro, who farms at the other end of the village. She grows olive trees and has cows which trot past us with bells jingling around their necks.

    “We’re not for sale, we don’t want to sell,” she tells me. She resents the offers of compensation and royalties for the area. “If I sold my land, what would I do?” she asks. She would also lose access to pasture on the common land if the mine went ahead.

    This is echoed by Fernando Queiroga, mayor of the municipality of Boticas, which includes the village of Covas do Barroso. He says that even if people are compensated for the duration of the mine they “will never go back to producing agricultural products again because in the meantime they’ll leave or they’ll just give up farming”.

    He’s finalising a legal challenge to the conditional approval of the project. “If the national courts don’t give us our answer, we’ll appeal to the European Court,” he says.

    The parish council of Covas do Barroso and the common land association have also lodged their own legal cases in an attempt to block the project.

    Dale Ferguson, the Australian interim CEO of Savannah Resources, says they’ve “listened to the community” and have made changes but concedes that “there always is some level of impact”.

    He believes the mine is “really critical for the energy transition for Europe”. He admits though, that with legal challenges, “the courts will make those ultimate decisions but we respect everybody’s rights and everybody’s opinions”.

    Portugal’s Secretary of State for Energy and Climate, Ana Fontoura Gouveia, is backing the Barroso mine and further exploitation of lithium in Portugal. She says the mine will bring new jobs and funding through royalties to the area. The legal action, she claims, is simply part of the democratic process.

    But does she see this as a test case for the rest of Portugal and Europe? “I see it as a best practice case and we are keen to show that you can do mining in Europe in the 21st Century with the highest standards and to the benefits of local populations,” she says.

    The rest of Europe will be watching the outcome closely, as pressure grows across the continent to open new mines for raw materials needed for the green transport and energy of the future.

  • Environmentalists fret over Portuguese green light for lithium mine

    Environmentalists fret over Portuguese green light for lithium mine

    The Romano lithium mine, proposed for Montalegre in Portugal’s northern district of Vila Real, has received a favourable conditional environmental impact statement from the Portuguese Environment Agency, but environmentalists are concerned about its impact.

    One of Portugal’s largest environmental associations, Zero, reacted on Thursday with concern about the viability of the Romano lithium mine in Montalegre, saying it was “absurd” to separate the project between the mine and the refinery, which will be subject to a separate Environmental Impact Assessment (EIA).

    “It’s worrying, and we’re talking once again about a project with high environmental, social and economic impacts, which is the subject of a favourable conditional opinion,” Nuno Forner from Zero told Lusa on Thursday.

    “This opinion has a particular aspect, which is that part of the mining annexes complex is going to be the subject of a separate process, which we think is absurd, to say the least,” Forner added.

    “Separating the project into several parts doesn’t make any sense,” he said.

    The Portuguese Environment Agency (APA) issued a favourable report regarding the mine.

    The APA’s decision is “favourable conditioned for mining and solution two (to the south-east of the mining area) for the location of the waste facility.”

    As for the location of the refinery, washing plant and administrative buildings, the report said “it should be further analysed under a separate procedure” and should preferably focus on the location corresponding to solution A if “the project’s incompatibility with the Montalegre Municipal Master Plan is overcome”.

    “We are concerned that the compensation and minimisation measures mention the possibility of the population being compensated in monetary terms so that they can buy another house or another plot of land or even be compensated for ending their agricultural activity,” said Forner.

    This, in his opinion, “clearly shows that this is a project with major impacts”, particularly on the social component, which “can hardly be minimised” and that “the solution will be to push people out of the area.”

    This is the second lithium project approved in Portugal after the favourable study conditioned on the Barroso mine (in May), proposed by Savannah for Covas do Barroso, in the neighbouring municipality of Boticas.

  • Barroso lithium project demonstrates ‘outstanding’ economics

    Barroso lithium project demonstrates ‘outstanding’ economics

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    Savannah Resources Plc Announces New Scoping Study for the Barroso Lithium Project demonstrates Outstanding Economics

    [/vc_column_text][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_separator][vc_empty_space height=”10px”][vc_row_inner][vc_column_inner width=”2/3″][widget-SocialWidget][/vc_column_inner][vc_column_inner width=”1/3″][link url=”https://www.kitco.com/news/2023-06-12/Savannah-says-new-scoping-study-for-Barroso-lithium-project-demonstrates-outstanding-economics-with-IRR-of-77.html” content_text=”News source”][/vc_column_inner][/vc_row_inner][vc_empty_space][vc_column_text](Kitco News) – Europe-focused lithium developer Savannah Resources (AIM: SAV) today reported the results of a new scoping study undertaken on the company’s 100% owned Barroso lithium project, located in northern Portugal.

    According to a company news release, a new scoping study for the Barroso lithium project demonstrates “outstanding” economics with post-tax NPV of US$953 million, IRR of 77%, and 1.3 year payback; as well as life of mine (LOM) revenue of US$4.2 billion, EBITDA of US$2.8 billion, and post-tax free cash flow of US$1.7 billion.

    Savannah added that the new study is based on average 5.5% grade spodumene concentrate LOM price of US$1,464/t, compared to current 6% grade spot prices of US$3,500/t.

    The company also noted that the project is considered by independent consultants to be of “low technical risk” with open pit mining and conventional processing combining dense media separation and a flotation circuit utilizing environmentally friendly reagents to produce a 5.5% Li2O grade spodumene concentrate.

    The project is scheduled to commence producing concentrate in mid-2026 subject to completion of DFS and project financing.

    “Capable of producing just under 200,000tpa of spodumene concentrate, or c.25ktpa LCE (lithium carbonate equivalent), the Barroso lithium project is one of the most significant potential lithium raw material sources in the European Union,” the company said.

    “Having received its key environmental approval last month and now with the strong business case implied by the scoping study, the Barroso lithium project is well placed to fulfil its role as a major source of responsibly produced lithium in Europe. In this way, it can help to establish Portugal as a key player in Europe’s own end-to-end lithium-ion battery value chain,” it added.

    Savannah Resources is a mineral resource development company and sole owner of the Barroso lithium project in northern Portugal. Production is targeted to begin in 2026, producing enough lithium for 0.5m vehicle battery packs per year.[/vc_column_text][vc_empty_space][epic_post_tag compatible_column_notice=”” font_size=”17px”][/vc_column][vc_column width=”1/6″][vc_text_separator title=”LATEST NEWS” color=”juicy_pink”][vc_empty_space height=”10px”][widget-LatestPosts post_number=”4″][vc_empty_space height=”10px”][vc_text_separator title=”MOST POPULAR” color=”juicy_pink”][vc_empty_space height=”10px”][widget-popular-posts post_count=”4″][vc_empty_space][vc_wp_search title=”Search”][vc_empty_space][lvs display_like=””][/vc_column][vc_column width=”1/6″][/vc_column][/vc_row][/vc_section][vc_section][vc_row][vc_column][distance desktop_type=”50″][/vc_column][/vc_row][vc_row][vc_column width=”1/2″][epic_block_28 compatible_column_notice=”” number_post=”6″ post_offset=”0″ first_title=”You may also like”][/epic_block_28][vc_empty_space][/vc_column][vc_column width=”1/2″][epic_hero_5 compatible_column_notice=”” hero_margin=”0″ content_filter_number_alert=”” post_offset=”0″][/vc_column][/vc_row][/vc_section]