Sigma Lithium Resumes Mining-Industrial Operations; Wins Benchmark Legal Decision; 2027 Guidance of 330,000t

The Federal Court of Appeals, led by Desembargadora Mônica Sifuentes, granted Sigma Lithium Corporation’s (SGML) "Emergency Motion for Suspensive Relief," effectively overturning a September 8, 2026 emergency ruling by a local federal judge in Teófilo Otoni that had suspended the company's environmental licenses. This decision allows mining-industrial operations to resume. The court cited a prolonged stoppage would cause "significant lasting negative economic impact" in the Vale do Jequitinhonha region, a rationale the company describes as a "Benchmark Legal Decision based on technical merits."

Regarding production capabilities, Sigma reaffirmed its guidance of 330,000 tonnes of annualized lithium oxide concentrate by year-end 2027, stating this target requires no additional capacity beyond Mine 1 (South Pit), the Cleantech Industrial Plant, and the fines/ultra-fines reprocessing circuit completed in Q1 2025. The company noted that the plant previously produced above 950 tonnes per day following its Q4 2024 upgrade, with production "surpassing 1,000 tonnes in several days."

In legal matters surrounding the Ngolo lawsuit, the company pointed to government registries showing no recognized Quilombola heritage houses within 12km of Grota do Cirilo at the time licenses were issued, despite an 8km regulatory radius. Sigma alleged the new self-proclaimed perimeter is 30 times larger than originally requested and that the operation does not fall within it, adding that Ngolo has been charged with defamation and slander in other actions. The company also denied media reports linking the previous operational stoppage to geotechnical mitigation in the North Pit, stating it "does not operate the North Pit" and citing over 1,100 days without lost-time accidents.

The release highlighted a supportive political landscape, noting a pro-lithium governor elected in Minas Gerais in the first round and 18 regional legislative seats with 95% support for the development agenda, alongside a presidential second round scheduled for October 25, 2026. Economically, the company cited Araçuaí GDP growth of 108% (per capita +123%) and Itinga growth of 91% (per capita +110%), along with 9,410 new companies established across 17 municipalities between January 2023 and March 2026.

Looking forward, Sigma outlined plans for Phase 2, "designed to close to double annual production capacity to 580,000 tonnes," and Phase 3 to 830,000 tonnes, with Phase 2 "planned to resume in 2027." The release contained no production tonnage, cost figures, revenue, cash, debt, or capex updates, nor did it provide information on the Terms for Adjustment of Procedures (TAC) fine, arbitrator matters, or internal-control remediation.

Sigma Lithium Corporation (SGML) issued a legal and operational update confirming that the near-term existential threat of an indefinite license suspension has been lifted. The company states that the decision rests on technical rather than political grounds. This development marks a reversal of a negative situation rather than the introduction of new fundamental upside. The company’s 330,000-tonne 2027 production target was previously stated on September 28 and again on October 1, 2026, while the license was suspended. No changes were made to production, cost, capital expenditure, or financial guidance in this release.

The suspension imposed real near-term economic costs that remain largely unquantified. Operations faced a partial suspension from July 17 to August 21, 2026, followed by a full mining and industrial suspension from September 30 to roughly October 6, 2026. Additionally, the company postponed its rolling 12-month target by three months.

What is genuinely new is a federal appellate ruling on the merits, which included an explicit judicial finding of regional economic harm resulting from a stoppage. This ruling, combined with a materially improved political backdrop in Minas Gerais, reduces the probability of a repeat shutdown.

Market reaction reflected prior positioning for a favorable outcome. The stock fell 15.2% on October 1, moving from US$13.85 to US$11.75, before recovering 17.4% to US$13.79 by October 6. The release was published at 16:50, after the market close, and the visible bounce over October 2, 5, and 6 indicates the market had already priced in the potential for a favorable ruling. Relative to the pre-suspension close, the stock remains marginally lower. Future upside will require operational delivery rather than further legal relief.

Sigma Lithium Corporation (SGML) operates the Grota do Cirilo complex in Vale do Jequitinhonha, Minas Gerais, Brazil. The company describes the site as the fifth-largest lithium industrial-mineral complex globally and, citing the USGS, the largest producer of industrial lithium oxide concentrate in the Americas.

The facility is a single producing complex comprising Mine 1 (South Pit) and the Cleantech Industrial Plant (Plant 1). The plant utilizes dense media separation and dry-stacked tailings, eliminating the need for tailings dams. It also features close to 100% water reuse, no toxic reagents, and 100% renewable electricity.

A fines and ultra-fines reprocessing circuit was added during a Q4 2024 upgrade and concluded in Q1 2025. This addition creates a second revenue stream from high-purity low-grade fines containing approximately 1%-1.5% Li2O, which are sold on spot indices.

The release states a nameplate capacity of 330,000t/yr of lithium oxide concentrate. This represents a re-basing compared to early-2026 disclosures, which cited a 270,000t/yr nameplate with Phase 2 expanding to 520,000t and Phase 3 to 770,000t. The September-October 2026 framing sets the base at 330,000t, with Phase 2 at 580,000t and Phase 3 at 830,000t. The incremental capacity per phase remains unchanged, representing a restated base rather than new construction.

Sigma Lithium is listed on the Nasdaq (SGML), TSXV (SGML), and B3 (S2GM34). It will also list on the ASX (SAU) starting September 3, 2026.