Sigma updates expansion plans in Brazil

Sigma Lithium updated expansion works at its operation in Brazil's Minas Gerais state.

Commercial production at the company’s Grota do Cirilo project started in the second quarter of 2023. In phase 1, annual capacity is 270,000t of concentrate, or 36,700t of lithium carbonate equivalent (LCE).

The company seeks to nearly double its capacity to 520,000t of concentrate through phase 2 and 3 expansions.

"In Q3, Sigma Lithium initiated earthworks by completing the clearing of terrain for arid and semi-arid vegetation suppression (including fauna capture and classification) for the entire industrial project, including the future phase 3 construction of [the] production plant," the company said in a statement.

"Total building and commissioning are expected to occur over a 12-month period, with budgeted capex for phase 2 of 492mn reais (approximately US$90mn at current exchange rates)."

Sigma highlighted that the expansion has secured financing through a loan obtained from Brazilian development bank BNDES.

The loan, worth 487mn reais, is for 16 years and carries an annual interest rate of 7.53%.

The firm posted sales revenue of US$20.9mn in the third quarter, down from US$45.9mn Q2. Revenue was impacted by the reduction in lithium prices during the period, Sigma said, without giving an annual comparison.