Savannah concludes Barroso lithium mining viability study
The British mining company Savannah has concluded a viability study into the Barroso lithium mining project.
The study will enable the company to advance to the next stage of the project in the Trás-os-Montes region of Portugal which entails sorting out the financing and preparing the land for the construction of the mine and remaining infrastructures.
“We are very pleased to publish the key results of the definitive feasibility study for the project’s first production phase.
This is yet another very important milestone for the development of the Barroso lithium project and the culmination of many years of work,” says Savannah CEO Emanuel Proença, as quoted in a statement, before concluding: “The DFS now provides us with a solid foundation to move forward to the next stage of development.”
According to the company, the study confirms the project’s technical, economic, environmental, and operational viability and will serve as a basis for negotiating financing with financial institutions and finalising commercial agreements with strategic clients.
The study projects an initial 14-year lifespan for the project, supported by probable reserves of 20 million tonnes of ore.
During this period, the company estimates it will produce approximately 2.56 million tonnes of spodumene concentrate—a raw material used in the manufacture of electric vehicle batteries—and sees potential to extend operations beyond 40 years.
Savannah further indicates that the project, located in the municipalities of Montalegre and Boticas, is expected to create approximately 500 permanent jobs and over 1,000 indirect and induced jobs. The study also points to a contribution of approximately €720 million in taxes, fees, and royalties to the Portuguese State over the project’s initial lifespan.
According to the company, projected operating costs place the Barroso lithium project in the second quartile of the industry’s global cost curve, meaning it could be more competitive than more than half of the projects currently in operation.
Source: ECO
