Savannah Resources has announced the immediate resumption of fieldwork and drilling operations at its Barroso lithium project in Portugal, following the Portuguese government's decision to lift a temporary suspension order. This project will become one of Europe's first major producers of spodumene, a crucial hard-rock lithium source for electric vehicle batteries.

The project faced a setback earlier this month when a precautionary injunction, filed by a group of landowners, led to a temporary suspension of prospecting activities. The landowners sought to challenge the government's authorization allowing Savannah Resources access to land it does not own, sparking concerns about potential delays and uncertainties surrounding the project's timeline.

However, the Portuguese government has now intervened, issuing a "reasoned resolution" that prioritizes the broader public interest. The government argued that any further postponement of the work would be "more costly and seriously detrimental to the public interest," emphasizing the strategic importance of the Barroso project for Portugal and Europe's burgeoning electric vehicle industry.

Savannah Resources, in its official statement, welcomed the government's decision, highlighting the project's potential to contribute significantly to the European Union's critical raw materials strategy and its drive towards a sustainable, low-carbon future. The company believes that Barroso’s spodumene deposit holds the key to securing a domestic supply of lithium, reducing Europe’s reliance on imports from other regions.

The Barroso project has been touted as Europe's most significant spodumene deposit, with recent prospecting results indicating a potentially larger resource than the previously estimated 28 million tonnes of high-grade lithium. Savannah Resources plans to develop four open-pit mines in the region, targeting an annual production capacity sufficient for 500,000 to 1 million electric vehicle batteries. The company aims to accelerate the project's development, with the goal of achieving first commercial output by 2027.

Despite the government's support, the project has faced considerable opposition from local communities and environmental groups. Concerns have been raised regarding the potential environmental impact of mining operations, including water pollution, habitat destruction, and noise pollution. Additionally, land ownership disputes have added complexity to the project's development, with approximately 24% of the required land being privately owned and 75% consisting of traditional "baldios," or common land.

Once operational, the Barroso mine is expected to have a throughput of approximately 1.5 million tonnes annually over its estimated 14-year mine life, based on a resource of 20.5 million tonnes at 1.05% lithium oxide. This output would play a crucial role in supporting Europe's transition to electric vehicles and reducing its carbon footprint.