London-based Savannah Resources has announced a delay in commissioning of its Barroso lithium project in Portugal to 2027 due to changes in government.
The company hoped to start production in 2026. However, the previous Portuguese government led by socialist prime minister Antonio Costa was accused of wrongdoings associated with lithium and hydrogen projects in the country.
"The change of government has led to a delay of more than half a year in the development of the project," Reuters quotes Savannah representatives as saying.
The company added that access to land was particularly affected by administrative changes. Previously, Savannah said it would ask the Portuguese government to authorise compulsory land acquisitions for its planned lithium mines. The government has the power to authorise a compulsory purchase in the public interest.
Now the company expects to deliver its definitive feasibility study in the second half of 2025, with the environmental licensing confirmation completed in a similar timeframe. The commissioning and first production from the project could then take place in 2027, it said.
According to the company, the Barroso project is Europe’s most significant resource of hard rock spodumene, containing 28 million tons of ore for a total of 293,400 tons of lithium oxide. In the past, the project has faced strong opposition from local residents and environmentalists.
Theodor Lisovoy, Managing Editor, Rough&Polished