Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Sigma Lithium Resources is set to reveal details of its phase 2 and 3 expansion plans at its Grota do Cirilo lithium project in Minas Gerais state, Brazil, by the end of September.
The company is already producing in phase one of the mine, with expected production of 130,000 tonnes of battery-grade lithium concentrate this year.
In a statement, Sigma said the “formal investment decision and kick-off of earthworks and ordering of long-lead items [is] expected to occur by the end of September. The company is engaged with Brazilian and global development financing institutions to fund the production expansion.”
If it decides to push ahead with the expansion after completing an ongoing feasibility study, phases 2 and 3 of the project are expected to increase production to 766,000 tonnes per year or 104,200 tonnes per year of lithium carbonate equivalent (LCE).
The company also said it is planning to publish an updated resource estimate, including the areas at the projected phase 4, in the coming weeks.
Currently the production from Grota do Cirilo is exported for battery production in China but part of the new output could also be used at the domestic market, as electric vehicles are gaining scale in Brazil.
In July, BYD Co. announced a 3 billion reais ($624 million) investment in Brazil to build its first electric-car plant outside Asia.
The city of São Paulo also has a plan approved to have 2,600 electric buses by the end of 2024, Gilberto Natalini, the city’s climate change secretary, told BNamericas.
In 2022, sales of EVs in Brazil reached a record 49,245 units, up from 34,990 units in 2021, according to the Brazilian electric vehicle association.
Read More: Sigma Lithium, eyeing buyout, sues ex-CEO and daughter-in-law over trade secrets
