Sigma Lithium Corporation said it is “rapidly advancing” construction on its Grota do Cirilo project in Brazil that will deliver battery-grade lithium concentrate for the electric vehicle industry.
The Nasdaq-listed company said that it has already completed around 25% of construction, including 100% of the earthworks necessary for the production plant and the plant’s drainage channels and pipes.
Construction crews are now working on civil construction of foundations for the installation of the production plant equipment, as well as the run of mine pad and wall and a high-voltage substation on site.
READ: Sigma Lithium substantially increases the total mineral resource estimate at its Grota do Cirilo project by around 50% after Phase 3 audit
Sigma told investors that Phase 1 construction remains on schedule and on budget for commissioning to begin by December 2022.
"We remain focused on establishing Sigma Lithium as one of the world's largest lithium producers, significantly progressing towards positive cash flow when delivering battery grade sustainable lithium in the near term,” Sigma co-CEO Ana Cabral-Gardner said in a statement.
“Our operating team has been consistently delivering all the execution milestones of the project's construction and licensing, positioning the company to potentially participate as a producer in what may be one of the most favorable lithium markets of all time."
Calvyn Gardner, co-CEO, added that the firm is making significant progress with construction at Grota do Cirilo.
“The continuous advance of final construction drawings towards 65% completion also allows us to plan for the total amount of bulk construction material to be utilized, potentially extending our management of our supply chains,” Gardner said.
Engineering and regulatory updates
Elsewhere, the firm also said it had progressed detailed engineering alongside construction activities, with approximately 65% of overall detailed engineering completed as of July 2022.
Additionally, the company received an extension of its current environmental licenses for both construction and installation and commissioning from the environmental authority of the State of Minas Gerais, the Council of Environmental Policy in Brazil.
The extension allows for the simultaneous mining of the north pit and the south pit of the Phase 1 deposit, and for the company to increase the area used for the dry stacking of the tailings of the production plant before planning a significant expansion of the production capacity in a Phase 2, according to a release.
New Lithium Decree
In other news, the Brazilian government has issued a new lithium decree that allows for unrestricted trade of any products containing lithium, which Sigma highlighted to investors.
“The New Lithium Decree is a significant positive step for Brazil to modernize and further integrate the country lithium sector into global lithium supply chains. It creates the regulatory conditions for Brazil's to extend its leadership in environmentally and socially sustainable pre-chemical lithium concentrate further downstream into refined chemicals and cathode precursors,” co-CEO Cabral-Gardner told investors.
“Brazil's large reserves of natural gas offshore and abundant and inexpensive renewable energy provide the perfect ‘Scope 2’ conditions for low carbon ‘Scope 1’ downstream industrial facilities in the lithium supply chain."
Finally, the firm said it received “overwhelming support” from its shareholders at its AGM held on June 30, 2022, with all resolutions passed.
Sigma Lithium’s Grota do Cirilo project in Brazil is set to be one of the largest and highest purity lithium projects in the world. The lithium will be processed in a state-of-the-art, green-tech processing plant that uses 100% renewable energy, 100% recycled water and 100% dry-stack tailings.
Contact Angela at angela@proactiveinvestors.com
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