By Brazil Stock Guide – Brazil’s Ministry of Labor has ordered the interdiction of three waste and overburden piles at the Grota do Cirilo mine operated by Sigma Lithium (SGML), citing a “serious and imminent” risk to workers and the surrounding community, according to Folha de S. Paulo. The decision adds pressure on the company’s efforts to restart what was once Brazil’s largest lithium operation, shut since October.
The mine, located in Minas Gerais, has annual capacity of about 270,000 tons of lithium concentrate. In November, Sigma told investors production would resume within two to three weeks, a timeline that has since slipped. Neither the company nor the Labor Ministry immediately responded to requests for comment.
Investor concerns have intensified. Last week, Bank of América downgraded its view on the stock, citing uncertainty over the restart, triggering a 15% one-day drop in shares.
Labor inspectors first blocked access to the piles on Dec. 5 and this week rejected Sigma’s appeal to lift the order. Inspectors said the company must present evidence that safety issues have been corrected before access can be restored. A site visit cited a partial rupture of one pile near a school in North of Minas Gerais, undermining the company’s claim that the structures are safe.