Sigma Lithium says operations unaffected by court ruling on licenses

Sigma Lithium Corporation (NASDAQ: SGML) said its mining and industrial activities continue to operate following reports of a preliminary judicial ruling that allegedly suspended the company's environmental licenses in Brazil.

According to a statement from the company, it has not received any legal communication regarding the ruling, which was reportedly issued by courts in Teofilo Otoni, a town more than 300 kilometers from its operations in Vale do Jequitinhonha. The ruling was said to have been issued during a recess of Brazilian courts over a national holiday. Sigma Lithium said it will begin its legal defense when courts resume on September 8.

The company said the ruling includes the potential for a daily fine, but stated that any such fine would only become due if charges resulted in a final negative ruling after full due legal process, including appeals. The company cited legal precedent suggesting such a process could take multiple years.

Sigma Lithium denied media reports claiming the preliminary ruling would override its recently concluded TAC Agreement with Minas Gerais state authorities, which the company said allows it to resume and scale activities. The company said it expects to deliver 240,000 tonnes of lithium oxide concentrate within 12 months and 330,000 tonnes in fiscal year 2027.

The company also noted that Brazil is approaching a general election on November 15, with Minas Gerais identified as a key state, and said it expects inaccurate media reports about its business may increase in frequency until the election concludes.

Sigma Lithium said its operations in Vale do Jequitinhonha support approximately 19,000 jobs and 80,000 family members. The company has operated in the region since 2012.

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