Nasdaq-, ASX- and TSX-V-listed Sigma Lithium says it has not received any legal communication regarding a preliminary judicial ruling issued without due process, which allegedly suspended its environmental licences for the Grota do Cirilo mine, in Brazil.

In response to reports claiming that a Brazilian judge ordered the suspension of mining at the mine, Sigma affirms its mining and industrial activities continue to operate to deliver 240 000 t of lithium oxide concentrate production within 12 months, to reach 330 000 t during the 2027 financial year.

The company also says this ruling is unwarranted and in dissonance with Brazil's strong rule of law, as due process has not been followed. Sigma confirms it has taken appropriate measures during the recess of the judiciary over a three-day national holiday and will begin its legal defence as soon as the courts resume regular operations on September 8.

Sigma further affirms that it has consistently acted in a transparent manner with all authorities, providing extensive technical, environmental and quantitative evidence regarding its operations. The company says it has demonstrated a commitment to the highest standards of environmental stewardship, which has been recognised with multiple awards.

The matter relates to a civil suit brought by the Federation of Quilombola Communities of Minas Gerais, where the group said the miner's project was within the direct area of influence of the Bau Quilombola Community.

Quilombolas are traditional communities of African descent, which were created by people who escaped slavery. Their territories are protected by the state, with more extensive licensing for projects that could impact them.

According to Reuters on September 7, Judge Antonio Lucio Tulio de Oliveira Barbosa said there was sufficient evidence that the Bau territory fell within the project's area of influence, triggering obligations for procedures including a free, prior and informed consultation with the community.

The judge said there was risk of harm to the community, as Sigma's mining complex carried out "constant blasting and earthmoving activities just a few kilometres from the traditional territory."

The judge cited studies indicating the territory is about 2.7 km (1.7 miles) from the project's directly affected area, well within the 8 km threshold that triggers the more extensive process.

Sigma has argued the project lies outside the impact zone. The court ordered an independent georeferencing expert review to determine the exact distance between the project and the Quilombola territory.

Beyond allegedly suspending environmental licenses the decision bars Minas Gerais state from granting new ones, and establishes a fine for Sigma if it continues its operations.