Savannah to resume lithium work after three-week halt as Portugal backs project
LISBON - London-listed Savannah Resources will resume work on its lithium project in Portugal, it said on Monday, after the government declared it of national and European significance and lifted a three-week suspension triggered by a court injunction.
Resources at the Barroso deposit of spodumene, a lithium-bearing mineral, in northern Portugal exceed 39-million tons, making it Europe's largest deposit.
Potential extensions of 35-million to 62-million tons could push resources above 100-million tons and more than double the mine's projected lifespan to more than 50 years.
The project has faced nearly a decade of public opposition and numerous legal challenges.
Work was suspended on June 9 after the Mirandela Administrative and Fiscal Court granted a precautionary injunction.
It was filed by Barroso's Assembly of Common Land Holders after a second administrative easement had granted Savannah access to community and private land to carry out geotechnical work.
In its response to the court, the government said the suspension could cause serious harm to the public interest, delay a project of recognised national and European strategic importance, and jeopardise the energy transition.
Following the lifting of the suspension on Monday, Savannah said it will reinitiate fieldwork and complete the work as planned.
There is no legal right of appeal against the lifting of the injunction, but it is possible opponents will attempt further action.
A final investment decision is expected by the end of the year, with construction planned for 2027 and first production in 2028.
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