Regional focus
“With no battery-grade lithium production in Europe at present, from a raw material perspective, meeting or surpassing targets set by relevant pieces of legislation is challenging, particularly as the demand for electric vehicles (EVs) increases. “However, Savannah wants to be part of the solution and our contribution is the Barrose Lithium Project (BLP), which hosts enough lithium spodumene for approximately 500,000 vehicle battery packs per annum – equivalent to 12.5% of the expected four million EVs to be produced in Europe in 2025,” he adds.
Of course, Europe is never going to be entirely self-sufficient in terms of critical resources, and the numbers aren’t as dire as they might appear. Noting there is potentially a significant amount of critical material resources across Europe – both discovered and yet to be discovered – Proença points to a speech in September 2022, by European Commission Vice- President Maroš Šefcovic.
At the time, Šefcovic stated that, “if all 11 potentially viable lithium projects in the EU become operational, they could produce some 38% of the expected lithium demand by 2030”, which Proença says would be “a very meaningful contribution from domestic sources”. However, while Europe might have the opportunity to secure its own supply chain for EVs, possessing both the necessary minerals in the ground and in the process of developing the infrastructure, it also needs the support of governing bodies in order to accelerate. For Alex Gorman, mining analyst at Peel Hunt, the CRMA doesn’t go far enough to achieve this goal. “Probably the biggest issue with the CRMA – and certainly the one you hear the most about – is that at this stage it doesn’t bring any new financing or additional resources to the table,” she says. “It’s difficult not to compare it to the US’s Inflation Reduction Act (IRA), which bundles together $500bn in clean energy spending, and from which we’re already seeing an impact in terms of primary spend by government entities on critical raw material supply chains, and a secondary benefit as investors back companies they perceive to be in line for subsidies.” Gorman further argues that while the CRMA promises to speed up the permitting process, this is ultimately down to individual countries, meaning that it remains open to question the extent to which the EC can influence permitting through redirection of existing financing and facilitation.
The narrative of ‘localism’
In the case of lithium, for example, enacting the CRMA is but one narrative – even if it is an important one. Another key focal point is around localism, where pushback against lithium mining projects is already being seen – Serbia providing a case in point, where the Jadar lithium project has at least been postponed, perhaps indefinitely, on environmental and
World Mining Frontiers /
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archaeological grounds. Resistance is also being seen in Portugal. While this is nothing new, it does – in the majority of cases – amplify important issues needing to be hashed out between mining operators, local communities and governments. Savannah’s Proença is quick to point out that the company is “committed to protecting the environment around the BLP, and included as part of its approved DIA many initiatives to accomplish this, including the comprehensive rehabilitation and revegetation of land impacted by the project.
“There are many stakeholders, both at government and local level, in Portugal, who are wholly supportive of the Project and recognise the very significant environmental benefit that lithium from Barroso can bring to society in Portugal and Europe,” he adds. As a result, Savannah has produced a design and operating plan for the project, which incorporates industry best practice and feedback from stakeholders. It has similarly undergone stringent review by Portugal’s environmental regulator. There is a lot to play for. While Portugal possesses more than 60,000t of known lithium reserves and is Europe’s biggest lithium producer – mining roughly 900tpa in 2020 – its industry, at present, is geared towards selling lower-quality product to the ceramics industry. This material is unusable for the production of EV batteries, but interested parties in the country – including Savannah – are now seeking to rectify this. Indeed, earlier in 2023, the Portuguese Environment Agency (APA) gave the thumbs-up for local company Lusorecursos to extract battery-grade lithium and for Savannah to develop four open-pit mines. Both projects are in the north of the country.
The need to communicate The important thing for all parties, then, is communication with one another. “Our task now is to clearly communicate the key features about the approved design and operating plan for the project to all stakeholders,” says Proença, “so that everyone can have an informed view on the project based on accurate, factual information.” This will include, once in production, data on key indicators of its environmental performance – such as water quality, air quality, noise levels and so on – in real time through a new mobile phone app and website, and via Savannah’s yet-to-be-established local information centres. “We are hopeful the socio-economic benefits that will be seen by the local communities, such as a large increase in jobs and investment in the local area, will become more evident as the project progresses,” Proença continues. “We would like BLP to become a poster child for how critical mineral resources can be developed in a responsible way, and our team continue to work on this as we move towards the completion of our definitive feasibility study (DFS) due next year.”
60,000t
The amount of known lithium reserves possessed by Portugal.
900tpa
The amount of lithium produced by Portugal in 2020, making it Europe’s biggest producer.
Savannah Resources 9
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