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Socioeconomic impact report highlights Mina do Barroso project's viability

27th July 2020

By: Donna Slater

Features Deputy Editor and Chief Photographer

     

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A report commissioned by energy metals resources group Savannah Resources into the potential economic impacts of developing the Mina do Barroso lithium project, in Portugal, points to significant benefits for the local, national and broader European economy.

The report, which was undertaken over the past year, was conducted by a team of economists from the University of Minho, based in the city of Braga about 80 km from the project.

The report’s economic analysis drew on the results of the company's 2018 scoping study on the project; publicly available information, including policy documents of the Portuguese government and the European Commission; statistical data; and relevant academic papers.

The report finds that the project can bring benefits at the local level, with the potential to create more than 200 long-term direct jobs (about 17% of the current employment pool), help arrest the engrained trend of de-population, have a significant positive impact on the local economy and community, and generate a substantial increase in income for the municipality.

The report also highlights that the project has benefits on a national level, whereby the Portugal economy stands to benefit from the generation of over €1.2-billion of export revenues.

The project also has the potential to boost the country’s value of metal ore exports by 20%, increase its gross output by over €1.1-billion and gross domestic product by more than €400-million, and create as many as 300 direct jobs and 2 500 indirect jobs in the construction phase and nearly 1 500 during the operational phase.

In addition, the report suggests the project can contribute nearly €1.2-billion to Portugal's gross output, including €168-million during construction and €90-million a year once in operation.

According to the findings of the report, the project could also act as a template and incentive for more in-country resource project development, particularly in the lithium sector, and stimulate development of downstream activities in the lithium industry, such as chemical and battery production.

In terms of benefits at a European Union (EU) level, the report points to the project partially aiding completion of the lithium battery value chain, which is considered strategic by the European Commission.

Further to this, the project could also supply the EU with lithium from a sustainably managed source which would be operated under EU and member State regulations.

Meanwhile, the report recommends that Savannah deepen links with the local government and local communities and meet the needs identified to secure the social licence to operate; develop strategies to contract service providers, focusing on local firms, and establish a plan for the hiring of local workers and a training plan to develop the necessary skills.

It also recommends that Savannah communicate in a transparent and timely manner with all stakeholders and contribute yearly to a community development fund to be administered by a foundation.

Savannah CEO David Archer says the report helps to bring further clarification regarding the many positive benefits that Mina do Barroso could bring.

“Their quantitative and qualitative analysis shows that it is a project of significant importance, not only in terms of the local economy, but also for the national economy of Portugal, and as part of the European Commission's plans to create an end-to-end lithium value chain in Europe.”

He points out that key themes of the report also appear in a recently published draft report, the 'Strategic Vision for Portugal 2020-2030 Economic and Social Recovery Plan', which was commissioned by the Portuguese government to identify recovery stimuli for the Portuguese economy following the Covid-19 pandemic.

“Among a number of measures and opportunities which government consultant António Costa Silva identifies in his report, is the long-term economic benefit available to Portugal from its domestic resources of metals, including lithium, required for the energy transition and decarbonisation of the global economy.”

Edited by Chanel de Bruyn
Creamer Media Senior Deputy Editor Online

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