A Brazilian court ordered the suspension of all environmental permits for Sigma Mineração SA, a subsidiary of Sigma Lithium Corp., halting mining at the Grota do Cirilo lithium project. The Federacao das Comunidades Quilombolas do Estado de Minas Gerais sought the emergency injunction, alleging the company overstated the distance between the project and the Quilombola Community of Baú's traditional territory. Judge Antonio Lucio de Oliveira Barbosa ruled the mine operates within the community's direct area of influence, requiring dedicated environmental impact studies for quilombola communities.

He also barred state environmental agencies from issuing new permits. Sigma argued the project lies outside the presumed 8-kilometer impact zone and defended its state licensing, noting the absence of definitive land titles. The Grota do Cirilo complex in Brazil's Lithium Valley is one of the world's largest hard-rock lithium deposits.

Operations were previously halted in July after inspections found violations in Araçuaí and Itinga cities, but resumed last month following a settlement with Minas Gerais state. Sigma did not comment on Saturday.