By Brazil Stock Guide – Sigma Lithium Corp. said Brazil’s mining regulator found no imminent risk at its waste and rock piles after an on-site inspection, a conclusion that contrasts with a prior shutdown ordered by labor inspectors and could support the company’s court challenge against the government.
The National Mining Agency, known as ANM, carried out a technical visit to Sigma’s Grota do Cirilo mine in Minas Gerais on Monday (20), about six weeks after labor authorities ordered the piles closed over what they described as a “serious and imminent” threat to workers and nearby communities. The shutdown triggered a sharp selloff in Sigma’s shares, which are listed in Toronto and New York under the ticker SGML.
In a statement released late Monday (3), ANM said its technicians conducted a visual inspection of the piles and reviewed documentation submitted by the company. “ANM’s technicians did not identify geotechnical anomalies indicating an imminent risk of global instability of the piles,” the agency said.
While the regulator acknowledged some deficiencies at the site, it said they do not warrant precautionary measures such as an immediate interdiction. “At this time, the conditions that would justify the adoption of precautionary interdiction measures were not identified,” ANM added.
Among the issues flagged, ANM notified Sigma about the lack of an adequate surface water drainage system on the piles. The agency classified the problem as a regulatory shortcoming, but stressed that it is “not associated with an imminent risk.”
ANM also disputed labor inspectors’ assessment of what had been described as a “partial rupture” in one of the piles near a school. According to the mining regulator, the finding corresponds to “a localized erosive process on one of the benches of a pile, with signs of local instability,” and does not pose an immediate danger to the surrounding population.
The ANM assessment does not overturn the Labor Ministry’s decision, but it strengthens Sigma’s legal position. Earlier this year, the lithium producer filed a lawsuit seeking to annul the shutdown order, and the regulator’s findings may be used as evidence in the case.
Sigma said on Monday (3) that it has resumed mining activities at Grota do Cirilo, its main and only producing asset, which had been idle since October. The operation is Brazil’s largest lithium mine, with annual capacity of about 270,000 metric tons of lithium concentrate. The company has previously said the closure of the piles would not affect its production restart schedule.
In filings submitted to labor authorities, Sigma warned that losing access to the piles would cause “significant operational and economic impacts, in addition to compromising the continuity of a regularly licensed mining activity.” The company did not immediately respond to requests for comment following ANM’s statement.
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