A Brazilian federal appeals court on Wednesday overturned an emergency order issued in September that had suspended the environmental licences for Sigma’s flagship Grota do Cirilo mine in Minas Gerais state, 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. Sigma shares jumped 5.9 percent in New York pre-market trading Wednesday to $10.29 from Tuesday’s $9.56 close, valuing the company at about $1.52 billion.
The decision removes the immediate legal obstacle for an asset considered among the world’s largest and highest-grade hard-rock lithium deposits. Sigma said it can reach its target of an annualized 330,000 tonnes of lithium oxide concentrate by the end of 2027 without adding capacity, relying on existing Mine 1 South Pit operations and the Cleantech Industrial Plant, which demonstrated output above 950 tonnes a day after a late-2024 technological upgrade. The October 6 shutdown story is now superseded: the mine is legally cleared to restart, with the ramp-up the question to watch.