Minas Gerais-based environmental watchdog Feam suspended Sigma Lithium's operational licenses for the second time in two months following a federal ruling.
Feam embargoed five operational licenses across Sigma's flagship Grota do Cirilo mine in Brazil. The suspensions cover its mining, waste storage and mineral-processing operations, as well as planned expansions.
Feam had already embargoed the same five licenses in late July, but Sigma reached a deal with the government of Minas Gerais to lift the suspension. The new embargo, however, came after a ruling from a federal judge on 4 September that was only made public on 24 September, when the decision was published in Minas Gerais' official gazette.
The judge ruled in favor of the neighboring communities, which claimed that Sigma failed to hold public consultations with them prior to commissioning Grota do Cirilo.
Since the new embargo came from a federal level, it overrules Sigma's agreement with Minas Gerais.
The company said on 7 September that it had not received any official legal communication in connection with the preliminary judicial ruling, "vehemently denying" that the federal court's decision overrules the agreement it signed with Minas Gerais state authorities on 21 August.
It remains to be seen whether Sigma will comply with the federal verdict — now made official — negotiate a deal, or appeal the decision.
