Savannah resumes lithium prospecting as Portugal overturns injunction

Savannah Resources

21/02/2025 14:26

LISBON, Feb 21 (Reuters) - Savannah Resources  SAVS.L 
said on Friday it would immediately resume prospecting works at
its lithium project in northern Portugal after the government
helped it overturn a precautionary injunction filed by
landowners.
    London-based Savannah sees the Barroso project's deposit of
spodumene, a lithium-bearing mineral, as the most significant in
Europe, with the latest prospecting results pointing to a larger
deposit than the previously estimated 28 million metric tons of
high-grade lithium for batteries. 
    The project, which faces opposition from local residents and
environmentalists, could be key to the European Union's ambition
to reduce dependence on countries such as China for strategic
raw materials.     
    The injunction sought to reverse the government's
authorisation for the company to access land belonging to others
and forced Savannah to suspend prospecting on some land plots at
Barroso two weeks ago. 
    Savannah said in a statement the government had filed a
"reasoned resolution" citing wider public interest, and that the
court had ended up overturning the injunction.
    The government argued that any postponement of the works "is
more costly and seriously detrimental to the public interest",
according to Savannah's statement. 
    The company expected to make up for the delay over the
remainder of the programme, it added.
    Barroso is Savannah's only venture. It plans to start
commercial output there in 2027 and is working to complete the
project's definitive feasibility study and final environmental
licensing process in the second half of this year.  

 (Reporting by Sergio Goncalves
Editing by Aidan Lewis)
 ((sergio.goncalves@thomsonreuters.com; +351213509204; Reuters
Messaging: sergio.goncalves.reuters.com@reuters.net))