Sigma Lithium (NASDAQ: SGML) (ASX: SAU) (TSX-V: SGML) shares jumped 5.9% in New York pre-market trading Wednesday after a Brazilian appeals court upheld environmental licences for its flagship Grota do Cirilo lithium mine, clearing the company to resume mining and processing operations.
The federal appeals court overturned an emergency order issued in September that suspended the licences in connection with a lawsuit filed by Ngolo, an association claiming to represent local Quilombola communities.
The court said a prolonged shutdown would cause significant and lasting economic harm in the Vale do Jequitinhonha region of Minas Gerais state.
Brazilian court suspends licenses for Sigma Lithium mine
The decision removes an immediate legal obstacle for Grota do Cirilo, considered among the world’s largest and highest-grade hard-rock lithium deposits, as Sigma works towards an annualized lithium oxide concentrate production rate of 330,000 tonnes by the end of 2027.
Capacity in place
Sigma said it can reach the 2027 target without adding capacity, relying on its existing Mine 1 South Pit operations and Cleantech Industrial Plant.
The plant demonstrated production above 950 tonnes per day following a technological upgrade in the fourth quarter of 2024, according to the company. Output topped 1,000 tonnes on several days.
The restart returns attention to Sigma’s ability to ramp up production after the court dispute interrupted operations at its main asset. Achieving the planned increase using existing infrastructure could limit the additional capital required to meet its 2027 guidance.
Sigma shares were last trading at $10.29 before the New York market opened, up from Tuesday’s $9.56 close. The lithium miner had a market value of about $1.52 billion.