Brazil's Minas Gerais says ordered Sigma Lithium's project halt

Federal prosecutors in Brazil have requested the suspension of lithium mining projects in Minas Gerais, including operations by Sigma Lithium, due to concerns over insufficient community consultation and environmental risks. The Federal Public Ministry (MPF) has directed the National Mining Agency (ANM) to review and potentially halt exploration and extraction licenses in the Jequitinhonha Valley, a key lithium-producing region. The MPF emphasized that local communities, including Indigenous and quilombola groups, were not adequately consulted prior to project approvals, violating principles of free, prior, and informed consent.

A 2021 technical review highlighted deficiencies in Sigma Lithium's Environmental Impact Study for the Grota do Cirilo project, particularly regarding water management. The company maintains that all permits were granted in compliance with Brazilian law and that the project does not impact Indigenous communities. However, the MPF warned that failure to comply with its recommendations could lead to further administrative or judicial actions.

Meanwhile, local legislation in Araçuaí has reduced the size of a protected environmental area, raising concerns among residents and activists about the potential acceleration of mining activities. The situation underscores growing tensions between economic development and environmental and social safeguards in Brazil’s lithium belt.